Campbell, J. L., Mauler, L. M., & Pierce, S. R. (2019). A Review of Derivatives Research in Accounting and Suggestions for Future Work. Journal of Accounting Literature, 42, 44-60.
https://doi.org/10.1016/j.acclit.2019.02.001

has been cited by the following article:

• TITLE: Does Derivatives Use Affect Firm’s Debt Capacity? Evidence from China

  AUTHORS: Guiling Zhang, Zhaoqi Guo, Lu Cheng, Yajing Wang

  KEYWORDS: Derivatives, Debt Capacity, Information Disclosure, Ownership, China

  JOURNAL NAME: Journal of Financial Risk Management, Vol.13 No.1, January 31, 2024

  ABSTRACT: This paper investigates the impact of derivatives use on firms’ debt capacity based on Chinese listed firms. It is found that derivatives usage is significantly negatively associated with firms’ new debt, and the results remain robust after controlling for endogeneity and replacing the measurement of debt capacity. Further analysis indicates that derivatives mainly reduce the ability borrow long-term debt, the negative relationship is mainly significant in non-SOEs, and the revision of relevant accounting standards help to ameliorate the unfavorable impact of derivatives use on debt capacity. This paper provides empirical support for further standardizing the use and disclosure of derivatives, and the revision and improvement of related accounting standards.