Risk Disclosure Form, Net Risk Disclosure And Investor Judgment Of Hedged Items

With the deepening of economic globalization,the business of Listed Companies in various countries is becoming more and more diversified,and the market risks faced by companies are becoming more and more complex.The fluctuation of exchange rate,interest rate and commodity price will cause market risks.In the face of these market risks,the effective method of most companies is to use financial derivatives to hedge and reduce the uncertainty of future losses as much as possible.For investors,in order to improve the return on investment,it is necessary to solve how to accurately judge the degree of risk and make behavioral decisions through the risk information and management decisions released by the company's management in time.This process can not be achieved only by relying on the investor's personal knowledge reserve and investment experience,but also by the help of the company's management and various regulators.From the perspective of investors,appropriately increasing the usefulness of information disclosure by the company's management can greatly reduce the screening and analysis of various complex risk information in the market,and reduce the misleading effect of information and the understanding deviation of investors;From the perspective of the company's management,the survival of the fittest in the market is bound to put forward higher requirements for market participants.How to provide better information for the market,investors and future company development in information disclosure is a test for each listed company.Therefore,how to improve the effectiveness of information transmission and optimize the accuracy of relevant standards has practical and theoretical significance for both the company's management and investors who deal with market risks and the regulatory authorities.Through the research on the relevant theories of information representation and behavior decision-making,investor behavior heterogeneity and sociality,and using the method of experimental research,this paper tests the impact of the form and content of risk information disclosure on the investment judgment of individual investors in cash flow hedging.The results show that: first,when the price fluctuation of the hedged item may cause the company to suffer losses,compared with the qualitative disclosure of the risk of spot price fluctuation,the investment attraction of quantitative Disclosure Based on information fit theory and quantitative information is higher;Second,when the price fluctuation of the hedged item may cause the company to suffer losses,compared with not disclosing the net risk,when disclosing the net risk,investors have insight into the efficient risk aversion measures of the management rather than risk,so the investment attraction increases;Third,when the company may suffer losses due to the price fluctuation of the hedged item,there is no difference between the disclosure of net risk and the qualitative or quantitative disclosure of commodity price fluctuation risk in the spot market;Without disclosing the net risk,there are significant differences in the impact of qualitative or quantitative disclosure of commodity fluctuation risk in the spot market on investors' judgment.