The purpose of the paper is to examine the impact of derivatives usage on bank performance. Four derivatives are used: forward, futures, options, and swaps. The bank performance is measured by daily stock returns during the period 2003-2009. The sample is composed of 74 banks from both emerging...

The purpose of this paper is to assess the level of accounting risk that banks, in both emerging and recently developed countries, face by using derivative instruments. On the whole, results show that forwards negatively affect leverage risk, the use of swap contracts has negative effect on...

This study investigates the use of derivative instruments by banks in both emerging and recently developed countries in terms of capital market risk. Overall, the results indicate that the use of options increases total return risk and unsystematic risk, while the use of forwards and futures...