FAIR VALUE MEASUREMENT DISCLOSURES: PARTICULARITIES IN THE CONTEXT OF LISTED COMPANIES AND EUROPEAN FUNDING

In the last years and especially after the outbreak of the recent financial and economiccrisis, fair value and implicitly fair value measurements for financial statements have been harshlycriticized, mainly by the representatives of the companies activating in the financial sector.Therefore, the aim of this paper is to study the issue of disclosures on fair value measurements inthe financial statements by firstly sketching a guide of best practices and further focusing onempirically documenting potential determinants. In order to achieve the objective of our study, theemployed methodology draws on similar studies in research literature, calculating for eachcompany included in the study a disclosure score called disclosure index and then using astatistical program to run a multivariate linear regression. The obtained results document, amongother, that the entity size positively affects the fair value measurements disclosure index.Particularities regarding fair value measurement related disclosures are discussed in the context ofEuropean funding (subsidies). Our study therefore contributes (through the developed empiricalstudy) to the literature on the determinants of companies‘ disclosure practices in the particulararea of fair value measurements.