Information Risk and Fair Values: Further Evidence

• In Event: Short Paper Presentations

Abstract

The public controversies over the implementation of Statement of Financial Accounting Standard No. 157 (SFAS 157) and its impact on the recent financial crisis motivate us to examine the association between fair values and reporting lags. With a sample of U.S. banking institutions, we find that Level 3 fair value assets are positively related to earnings announcement and audit report lags. Our study extends the current literature on fair values and reporting lag. The findings of our study may be of interest to the global regulators, investors and other information users.

Authors

• Hua-Wei Huang, National Cheng Kung University

• Mai Dao, University of Toledo

• Wen-Chi Sun, National Cheng Kung University