ERROR: relation "aaa151101_proceeding_action_tracker" does not exist LINE 1: INSERT INTO aaa151101_proceeding_action_tracker(action_track... ^There was an unexpected database error.ERROR: relation "aaa151101_proceeding_action_tracker" does not exist LINE 1: INSERT INTO aaa151101_proceeding_action_tracker(action_track... ^There was an unexpected database error.Southeast Regional Meeting: Fair Value Measurements, Information Risk, Liquidity and Firm Value
Individual Submission Summary
Share...

Direct link:

Fair Value Measurements, Information Risk, Liquidity and Firm Value

Sat, April 18, 9:05 to 10:45am, Renaissance Asheville Hotel, TBA

Abstract

This study examines whether the implementation of FASB Accounting Standards Codification on Fair Value Measurements (ASC 820-10) improves liquidity and its relation to firm value. The FASB designed ASC 820-10 with the purpose of decreasing information asymmetry around fair value measurements and improving comparability. However, this is only possible if the disclosure is relevant and provides an informational advantage for the user. Initial results indicate that ASC 820-10 did decrease liquidity for all firms and increased firm value for affected firms relative to those not materially affected by the standard. Collectively, these results provide empirical evidence of the precarious relationship between information asymmetry, information precision and financial statement disclosures.

Author