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Bank Holding Companies’ Accounting Versus Economic Hedging Activities In The Sfas 133 Framework, Veliota Drakopoulou
Bank Holding Companies’ Accounting Versus Economic Hedging Activities In The Sfas 133 Framework, Veliota Drakopoulou
Veliota Drakopoulou
The goal of this research was to investigate the controversy surrounding the inability of Statement of Financial Accounting Standard No. 133 (SFAS 133), Accounting for Derivative Instruments and Hedging Activities to portray the economics of hedging. This research examined whether or not the possibility of increased volatility evolved from economic hedges that do not qualify for hedge accounting under SFAS 133 prompted Bank Holding Companies (BHCs) to adjust their corporate risk management strategy to one that is more accounting responsive. Based on the results of this research, BHCs' which increased the level of accounting hedges and decreased the level of …