Derivative Instruments on Emission Allowances: factors Influencing Disclosure in Portuguese Companies

Purpose: This article aims to analyze the degree of disclosure information on Derivative instruments Emission Allowances, analyzing compliance with underlying accounting regulations, and their determinants factors. Theoretical framework: With evolution European Union Trading System (EU ETS), which foresees that emission licenses will no longer be allocated free charge negotiated at auction, it is expected there an increase in trading derivative licenses, cover any risks future price fluctuations, therefore this area. Design/methodology/approach: The methodology used study was content analysis Reports Accounts sample entities over a 12-year period, based creation indexes for topics under analysis. longitudinal seeks address possible changes behavior companies' reporting practices periods 2008-2102 2013-2020 (corresponding 2nd 3rd phases EU ETS). Findings: results index, general, higher (average IDGD 0.81), although still very low when specifically refers risk hedging related (IDL_LE = 0.11). Contrary expectations, not only companies do use type instrument fluctuations nor change between ETS significant. Regarding explanatory factors studied, statistically positive correlation index profitability. Research, Practical & Social implications: focus operating Portugal, are part National Licensing Plan (PNALE) I II. literature silent previous studies allowances derivatives, so our represents contribution advancement Originality/value: As far as we know, gas non-existent,