Determinants of discretionary fair value measurements: The case of Level 3 assets in the banking sector

Yao, Daifei, Percy, Majella, Stewart, Jenny, & Hu, Fang (2016) Determinants of discretionary fair value measurements: The case of Level 3 assets in the banking sector. Accounting & Finance. (In Press)

[img] Accepted Version (PDF 481kB)
Administrators only | Request a copy from author

View at publisher


The objective of our research is to respond to the call of Barth and Taylor (2010) for more research to examine the role of discretion in fair value estimates. Specifically, we investigate factors that explain banks’ accounting choices to use Level 3 valuation inputs from the fair value measurement hierarchy. Using hand-collected data from a sample of international banks during 2009-2013, we find that incentives to use discretionary Level 3 valuation inputs, which can provide an opportunity to manage earnings, are associated with both firm-level and country-level determinants. Additional tests provide evidence that Level 3 ‘transfer in’ behaviour is related to changes in bank characteristics.

Impact and interest:

0 citations in Scopus
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 97980
Item Type: Journal Article
Refereed: Yes
Keywords: Fair value measurement, Fair value hierarchy, Accounting choice, International banks
DOI: 10.1111/acfi.12225
ISSN: 1467-629X
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2016 AFAANZ
Deposited On: 08 Aug 2016 23:17
Last Modified: 28 Aug 2016 17:47

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page