Options, Swaps, Forward Contracts, Futures
Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
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Also see MAAW's Stock Options Bibliography
Alford, A. W. and J. R. Boatsman. 1995. Predicting long-term stock return volatility: Implications for accounting and valuation of equity derivatives. The Accounting Review (October): 599-618.
Anthony, J. H. 1987. The effect of information announcements on bid/ask spreads in the call options market. Contemporary Accounting Research 3(2): 460-476.
Apostolou, B. and N. G. Apostolou. 2008. Derivatives: New disclosures required. The CPA Journal (November): 28-36.
Armstrong, C. S. and D. F. Larcker. 2009. Discussion of “The impact of the options backdating scandal on shareholders” and “Taxes and the backdating of stock option exercise dates”. Journal of Accounting and Economics (March): 50-58.
Arya, A. and J. Glover. 2003. Abandonment options and information system design. Review of Accounting Studies 8(1): 29-45.
Arya, A., B. Mittendorf and A. Sudbury. 2015. Forward contracting and incentives for disclosure. Review of Accounting Studies 20(3): 1093-1121.
Ataullah, A., A. Higson and M. Tippett. 2006. Real (adaptation) options and the valuation of equity: Some empirical evidence. Abacus 42(2): 236-265.
Bar-Yosef, S. and J. Livnat. 1984. Investment in commodities futures: The accounting implications. Abacus 20(1): 87-95.
Baril, C. P., L. Betancourt and J. W. Briggs. 2005. How to Excel at options valuation. Journal of Accountancy (December): 57-86
Baril, C. P., R. L. Benke Jr. and G. W. Buetow. 1996. Managing risk with derivatives. Management Accounting (October): 20-22, 24, 26-27. (Explanation of four types of financial derivatives (forwards, futures, options, and swaps) and how to use them to manage financial risk, i.e., the uncertainty associated with fluctuations in interest rates, currency exchange rates, and the prices of commodities and equities).
Barlas, S. 2016. Bill clarifies derivatives end-user exemption. Strategic Finance (February): 12.
Barlas, S. 2016. New ICFR concerns, and SEC's restrictive derivatives proposal. Strategic Finance (June): 11.
Barlas, S. 2017. Derivatives are an issue again. Strategic Finance (July): 13.
Barlas, S. 2018. House considers changes to Dodd-Frank derivatives provisions. Strategic Finance (May): 12.
Barlas, S. 2020. Companies get leeway on use of swaps by subsidiaries. Strategic Finance (October): 9.
Barton, J. 2001. Does the use of financial derivatives affect earnings management decisions? The Accounting Review (January): 1-26.
Baysden, C. 2015. Q&A: Pricing options that boost profits: Firms can increase client satisfaction and firm profits simultaneously by offering different pricing options, according to Ron Baker. Journal of Accountancy (September): 41-44.
Beattie, V. 2011. Digital Reporting Options for Europe: A Study of Interactive Data from the Perspective of Non-Professional Investors by Joanne Locke, Andy Lymer, Alan Lowe. The Accounting Review (November): 2191-2193.
Beatty, A. 1999. Assessing the use of derivatives as part of a risk-management strategy. Journal of Accounting and Economics (January): 353-357.
Bernile, G. and G. A. Jarrell. 2009. The impact of the options backdating scandal on shareholders. Journal of Accounting and Economics (March): 2-26.
Beveridge, C. and M. Joshi. 2011. Monte Carlo bounds for game options including convertible bonds. Management Science (May): 960-974.
Bloom, R. and W. J. Cenker. 2008. Derivatives and hedging: Accounting vs. taxation. Journal of Accountancy (October): 54-58.
Bloxham, E. 2000. Intangibles, human capital, and options value measurement. Journal of Cost Management (November/December): 26-31.
Boutelle, E. G. 1934. Cotton mills and the futures market. N.A.C.A. Bulletin (June 1): 1141-1162.
Bryan, S. and S. Lilien. 2008. The case of interest rate swaps and questions for the Pozen committee. The CPA Journal (June): 26-31.
Busby, J. S. and C. G. C. Pitts. 1997. Real options in practice: An exploratory survey of how finance officers deal with flexibility in capital appraisal. Management Accounting Research (June): 169-186.
Callen, J. L., J. Livnat and D. Segal. 2009. The impact of earnings on the pricing of credit default swaps. The Accounting Review (September): 1363-1394.
Cerf, D. C. and F. J. Elmy. 1998. Accounting for derivatives: The case of a currency rate swap used to hedge foreign exchange rate exposure. Issues in Accounting Education (November): 931-955.
Chang, H. S., M. Donohoe and T. Sougiannis. 2016. Do analysts understand the economic and reporting complexities of derivatives? Journal of Accounting and Economics (April-May): 584-604.
Chen, Z., A. Z. Liu, G. S. Seow and H. Xie. 2020. Does mandatory retrospective hedge effectiveness assessment under ASC 815 provide risk-relevant information? Accounting Horizons (September): 61-85.
Chiu, T. T., Y. Guan and J. B. Kim. 2018. The effect of risk factor disclosures on the pricing of credit default swaps. Contemporary Accounting Research 35(4): 2191-2224.
Choi, J. J., C. X. Mao and A. D. Upadhyay. 2015. Earnings management and derivative hedging with fair valuation: Evidence from the effects of FAS 133. The Accounting Review (July): 1437-1467.
Cummings, B. K., N. G. Apostolou and W. G. Mister. 1987. Accounting for interest rate swaps: An emerging issue. Accounting Horizons (June): 19-24.
Defeo, V. J., R. A. Lambert and D. F. Larcker. 1989. The executive compensation effects of equity-for-debt swaps. The Accounting Review (April): 201-227.
Denison, C. A. 2009. Real options and escalation of commitment: A behavioral analysis of capital investment decisions. The Accounting Review (January): 133-155.
Denison, C. A., A. M. Farrell and K. E. Jackson. 2012. Managers’ incorporation of the value of real options into their long-term investment decisions: An experimental investigation. Contemporary Accounting Research 29(2): 590-620.
Detemple, J., R. Garcia and M. Rindisbacher. 2005. Asymptotic properties of Monte Carlo estimators of derivatives. Management Science (November): 1657-1675.
Dillon, G. J., R. N. McMichael and M. J. Sandelich. 2001. Derivatives accounting compliance cost us $100,000 and 1,200 hours. Strategic Finance (October): 51-53.
Du, L, A. Masli and F. Meschke. 2018. Credit default swaps on corporate debt and the pricing of audit services. Auditing: A Journal of Practice & Theory 37(3): 117-144.
Ferreira, N., J. Kar and L. Trigeorgis. 2009. Option games. Harvard Business Review (March): 101-107. (Option games is a valuation tool combining real options with game theory to help managers make rational investment decisions).
Fischer, D. 2013. The hidden effects of derivatives on bank balance sheets. The CPA Journal (September): 67-69.
Fontanills, G. A. 1998. The Options Course: High Profit and Low Stress. John Wiley & Sons.
Francis, J. 1990. Accounting for futures contracts and the effect on earnings variability. The Accounting Review (October): 891-910.
Frey, K. M. 1977. Management of foreign exchange risk with forward contracts. Management Accounting (March): 45-48.
Frino, A. and A. West. 1999. The lead-lag relationship between stock indices and stock index futures contracts: Further Australian evidence. Abacus 35(3): 333-341.
Goldberg, S. R., C. A. Tritshler and J. H. Godwin. 1995. Financial reporting for foreign exchange derivatives. Accounting Horizons (June): 1-16.
Gong, J. J., W. A. Van der Stede and S. M. Young. 2011. Real options in the motion picture industry: Evidence from film marketing and sequels. Contemporary Accounting Research 28(5): 1438-1466.
Grove, H. D. and J. D. Bazley. 1997. Interest rate swaps. Journal of Accounting Education 15(4): 591-614.
Guay, W. R. 1999. The impact of derivatives on firm risk: An empirical examination of new derivative users. Journal of Accounting and Economics (January): 319-351.
Hairston, S. A. and M. R. Brooks. 2019. Derivative accounting and financial reporting quality: A review of the literature. Advances in Accounting: Incorporating Advances in International Accounting (44): 81-94.
Hall, B. J. and T. A. Knox. 2004. Underwater options and the dynamics of executive pay-to-performance sensitivities. Journal of Accounting Research (May): 365-412.
Hand, J. R. M. 1989. 1988 Competitive manuscript award: Did firms undertake debt-equity swaps for an accounting paper profit or true financial gain? The Accounting Review (October): 587-623.
Hardwick, P. and M. Adams. 1999. The determinants of financial derivatives use in the United Kingdom life insurance industry. Abacus 35(2): 163-184.
Hawes, R. K. 1983. Financial futures: Today's cash management alternatives. Management Accounting (December): 26-28.
Hayes, R. M. 2004. Discussion of underwater options and the dynamics of executive pay-to-performance sensitivities. Journal of Accounting Research (May): 413-421.
Hellermann, R., A. Huchzermeier and S. Spinler. 2013. Options contracts with overbooking in the air cargo industry. Decision Sciences 44(2): 297-327.
Hughes, J. S., J. L. Kao and M. Williams. 2002. Public disclosure of forward contracts and revelation of proprietary information. Review of Accounting Studies 7(4): 459-478.
Hult, G. T., C. W. Craighead and D. J. Ketchen, Jr. 2010. Risk uncertainty and supply chain decisions: A real options perspective. Decision Sciences 41(3): 435-458.
Hwang, A. L. J. 2002. Comparative analysis of accounting treatments for derivatives. Journal of Accounting Education 20(3): 205-233.
Ishfaq, R. and U. Raja. 2018. Evaluation of order fulfillment options in retail supply chains. Decision Sciences 49(3): 487-521.
Johnson, L. T. and R. J. Swieringa. 1996. Derivatives, hedging and comprehensive income. Accounting Horizons (December): 109-122.
Justin, W. H. 1917. Grain and flour futures. Journal of Accountancy (June): 459-461.
Justin, W. H. 1917. Valuation of futures in flour mill accounting. Journal of Accountancy (December): 430-438.
Kawaller, I. G. 2012. Disclosures on derivatives and hedging transactions: A review of best practices. The CPA Journal (October): 38-39.
Kim, J. B., P. Shroff, D. Vyas and R. Wittenberg Moerman. 2018. Credit default swaps and managers voluntary disclosure. Journal of Accounting Research (June): 953-988.
Laprise, S. G., M. C. Fu, S. I. Marcus, A. E. B. Lim and H. Zhang. 2006. Pricing American-style derivatives with European call options. Management Science (January): 95-110.
Linsmeier, T. J., J. Gribble, R. G. Jennings, M. H. Long, S. H. Penman, K. R. Petroni, D. Shores, J. H. Smith and T. D. Warfield. 1997. AAA's Financial Accounting Standards committee response to FASB discussion documents: Response to the FASB exposure draft, "Proposed statement of financial accounting standards - Accounting for derivatives and similar financial instruments and for hedging activities". Accounting Horizons (March): 157-163.
Lys, T. and K. Sivaramakrishnan. 1988. Earnings expectations and capital restructuring: The case of equity-for-debt swaps. Journal of Accounting Research (Autumn): 273-299.
Martin, X. and S. Roychowdhury. 2015. Do financial market developments influence accounting practices? Credit default swaps and borrowers' reporting conservatism. Journal of Accounting and Economics (February): 80-104.
Masheane, M. 1998. Beta Alpha Psi Award Winning Manuscript Derivatives: Accounting and Economic Issues. Journal of Accounting Education 16(3-4): 591-598.
Naiker, V., F. Navissi and C. Truong. 2013. Options trading and the cost of equity capital. The Accounting Review (January): 261-295.
Nair, R. D., L. E. Rittenberg and J. J. Weygandt. 1990. Accounting for interest rate swaps - A critical evaluation. Accounting Horizons (September): 20-30.
Nichols, N. and L. Betancourt. 2006. Options and the deferred tax bite. Journal of Accountancy (March): 71-75.
Patton, W. 2005. Investing in Real Estate With Lease Options and "Subject-To" Deals: Powerful Strategies for Getting More When You Sell, and Paying Less When You Buy. Wiley.
Rambo, R. G., D. Main and L. Beaubien. 2011. Reducing reporting risk: Designating foreign currency forward contracts as cash flow hedges. Journal of Accounting Education 29(4): 284-294.
Rashty, J. 2017. Interest rate swaps. The CPA Journal (November): 42-47.
Rashty, J. and J. O'Shaughnessy. 2010. Foreign currency forward contracts and cash flow hedging: Navigating accounting and disclosure requirements. The CPA Journal (October): 24-30.
Rashty, J. and J. O'Shaughnessy. 2012. Foreign currency forward contracts and cash flow hedging. The CPA Journal (March): 22-27.
Reichert, C. J. and L. J. Kreissl. 2013. Tax matters: Basis reporting for debt instruments and options is phased in. Journal of Accountancy (July): 72-77.
Rezaee, Z. 1999. No more surprises! Strategic Finance (March): 58-61. (FASB's new rules on derivatives).
Rollins, T. P., D. E. Stout and D. J. O'Mara. 1990. The new financial instruments. Management Accounting (March): 35-41. (STRIPS, swaps, TIGRS and ZEBRAS).
Rue, J. C., D. E. Tosh and W. B. Francis. 1988. Accounting for interest rate swaps. Management Accounting (July): 43-49.
Sahlman, W. A. 2002. Expensing options solves nothing. Harvard Business Review (December): 90-96. (Forcing companies to include the cost of option grants on their income statements obscures the real problems).
Sherman, H. D. and S. D. Young. 2001. Tread lightly through accounting minefields. Harvard Business Review (July-August): 129-135. (The authors discuss six minefields: Revenue measurement and recognition, provision for uncertain future costs, asset valuation, derivatives, related-party transactions, and information used for benchmarking performance).
Siebers, T. 1985. Accounting for commodity futures. Management Accounting (April): 42-47, 57.
Skinner, D. J. 1996. Are disclosures about bank derivatives and employee stock options ‘value-relevant’? Journal of Accounting and Economics (August-December): 393-405.
Skinner, D. J. 1990. Options markets and the information content of accounting earnings releases. Journal of Accounting and Economics (October): 191-211.
Skinner, D. J. 1996. Are disclosures about bank derivatives and employee stock options ‘value-relevant’? Journal of Accounting and Economics (August-December): 393-405.
Smith, G. S. 2002. Steganography and its derivatives - Steganalysis and chaffings. Journal of Forensic Accounting (3): 157-162.
Smith, P. A. and M. J. Kohlbeck. 2008. Accounting for derivatives and hedging activities: Comparison of cash flow versus fair value hedge accounting. Issues in Accounting Education (February): 103-117.
Strauss, N. 2019. Financial instruments. The CPA Journal (August): 44-47. (Panel discussion: Credit loss standard, derivatives and hedging, equity investments, fair value of a company's debt, fair value disclosure for non-public companies).
Stuart, A. 2012. Warming signs? The freeze in small-business financing may be starting to thaw, as bank loans pick up and equity options proliferate. CFO (September): 48-53.
Stulz, R. M. 2003. Risk Management and Derivatives. South-Western Educational Publishing.
Truong, C. and C. Corrado. 2014. Options trading volume and stock price response to earnings announcements. Review of Accounting Studies 19(1): 161-209.
Van Putten, A. B. and I. C. MacMillan. 2004. Making real options really work. Harvard Business Review (December): 134-141. (Integrating options and discounted cash flow).
Venkatachalam, M. 1996. Value-relevance of banks' derivatives disclosures. Journal of Accounting and Economics (August-December): 327-355.
Wilson, A. C. and G. R. Smith. 1997. Proposed accounting for derivatives: Does it address the concerns of current accounting? Accounting Horizons (September): 69-78.
Wong, M. H. F. 2000. The association between SFAS No. 119 derivatives disclosures and the foreign exchange risk exposure of manufacturing firms. Journal of Accounting Research (Autumn): 387-417.
Young, S. M., J. J. Gong and W. A. Van der Stede. 2012. Using real options to make decisions in the motion picture industry. Strategic Finance (May): 53-59. ("A real option is the right, but not the obligation, to undertake a business decision.").
Zhang, H. 2009. Effect of derivative accounting rules on corporate risk-management behavior. Journal of Accounting and Economics (June): 244-264.
Zhang, P. G. 2004. Chinese Yuan (renminbi): Derivatives Products. World Scientific Publishing Company Inc.