Use of derivatives in public sector organizations

Date

2005

Authors

Brailsford, Timothy John
Heaney, Richard
Oliver, Barry

Journal Title

Journal ISSN

Volume Title

Publisher

Blackwell Publishing Ltd

Abstract

The present paper develops and tests a model explaining public sector derivative use in terms of budget discrepancy minimization. The model is different from private sector models. Private sector models do not readily translate into the public sector, which typically faces different objectives. Hypotheses are developed and tested using logistic regression over a sample of Australian Commonwealth public sector organizations. It is found that public sector organization derivative use is positively correlated with liabilities and size consistent with the hypotheses concerning budget discrepancy management.

Description

Keywords

Keywords: Derivative use; Public sector; Public sector financial management; Risk management

Citation

Source

Accounting and Finance

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

DOI

10.1111/j.0810-5391.2004.00120.x

Restricted until

2037-12-31