How Do Fair Value Measurements of Financial Instruments Affect Investments in Banks?

This paper experimentally investigates how fair value measurements of financial instruments affect the decision of nonprofessional investors to invest in a bank’s shares. Specifically, we assess how investors respond to variations in net income resulting from fair value adjustments in trading assets and how the reliability of the fair value estimates affects their decision.

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Year of publication:	2014-05
Authors:	Bergheim, Ralf ; Ernstberger, Jürgen ; Roos, Michael W.M.
Institutions:	Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Subject:	Banks \| fair value accounting \| nonprofessional investors \| investment decision \| experiment

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Extent:	application/pdf
Series:	Ruhr Economic Papers. - ISSN 1864-4872.
Type of publication:	Book / Working Paper
Notes:	Number 0487 33 pages
Classification:	C91 - Laboratory, Individual Behavior ; G11 - Portfolio Choice ; M41 - Accounting
Source:	RePEc - Research Papers in Economics

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