Statement of Financial Accounting Standards No. 107 (codified in ASC 825-10), Disclosures about Fair Value of Financial Instruments, mandates the disclosure of fair values for financial instruments with the objective of providing investors with more relevant information about firms' future cash...

In this paper, I examine the relations between risk management disclosures, governance, and the market pricing of the fair value gains and losses (FVGL) for US commercial bank holding companies (banks). I find that banks with strong corporate governance disclose more about their risk management...

This study uses U.S. closed-end funds to investigate whether the realized component of fair value earnings conveys information about future fund and benchmark market performance and whether the market impounds this predictive information into fund share prices. We find that the realized...

This study investigates the informativeness of purchase price allocations (PPAs) that involve fair value estimation of acquired assets and liabilities after a business combination. Using a model capturing the amount of goodwill expected after the initial announcement of an acquisition, we...

We investigate the assertion that fair valuation of financial instruments exacerbated the 2008 financial crisis. We focus on the 4th quarter of 2008 following the Lehman Brothers bankruptcy, the Reserve Primary fund “breaking the buck” and other adverse events. Our central finding is that...

Fair value refers to current values as the backbones of accounting measurements. Current value follows the efficient financial market (EFM) hypothesis - which abstracts away from economic realization - as guidance for the financial market investment process through ignorance and hazard. This...

We examine the relevance of fair value accounting (SFAS 157) to investors through the innovative prism of investors' reaction to 44 key events (e.g., Lehman's demise) during late 2008, the peak of the world-wide financial crisis. Based on the nature of these events, we further classify these 44...

Fair value accounting (FVA) has been blamed for amplifying the financial crisis of 2008-2009. We investigate investor and creditor reactions to policymaker deliberations, recommendations and decisions about FVA and impairment rules in the banking industry. If FVA was a key contributor to the...

We investigate how investors price the fair value estimates of assets as required by Statement of Financial Accounting Standards No. 157 (SFAS 157) since the financial crisis in 2008. We observe that Level 3 fair value estimates are typically priced lower than Level 1 and Level 2 fair value...