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Credit Institutes’ Disclosure and Presentation of Derivatives after the Crisis

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  • Daniele Gervasio
  • Damiano Montani

Abstract

Asked to reconstruct and interpret the causes of the current global crisis, an archaeologist of the fourth millennium could easily find himself sifting through the deluge of publications on the subject of financial instruments known as “derivatives”.The study analyses the disclosure methods adopted for derivative instruments reported in the balance sheets of major banks in central and southern Europe in the period from 2005 to 2012 for the purpose of outlining the types and methods of use in the trading markets amongst retail investors and bank intermediaries.In the light of the analysis conducted, it is possible to observe how the recent financial crisis has not changed the negotiation strategies of the international banking system with regard to derivatives; financial institutions reputed to be amongst the most famous in Europe are, in fact, still intoxicated by these derivative instruments.This paper presents an empirical-analytical approach with a series of keys to understanding the derivative market today in the post-crisis period.

Suggested Citation

  • Daniele Gervasio & Damiano Montani, 2017. "Credit Institutes’ Disclosure and Presentation of Derivatives after the Crisis," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 123-123, January.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2017:i:2:p:123
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    References listed on IDEAS

    as
    1. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
    2. Patrícia Teixeira Lopes & Lúcia Lima Rodrigues, 2007. "Accounting for financial instruments: A comparison of European companies’ practices with IAS 32 and IAS 39," FEP Working Papers 239, Universidade do Porto, Faculdade de Economia do Porto.
    3. Cox, John C. & Ross, Stephen A. & Rubinstein, Mark, 1979. "Option pricing: A simplified approach," Journal of Financial Economics, Elsevier, vol. 7(3), pages 229-263, September.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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