The Impact of Fair Value Accounting on Earnings Predictability: Evidence from Jordan

Osama Samih Shaban (), Atala M Alqtish () and Adel M Qatawneh ()

Asian Economic and Financial Review, 2020, vol. 10, issue 12, 1466-1479

Abstract: The main aim of this research paper is to examine the impact of fair value measurements on earnings predictability. This study focuses on analyzing the relationship between fair value measurements and predictability as a measure of earnings quality. The primary data needed to achieve the study objectives were collected through the annual reports of Jordanian commercial banks. Data from ten commercial banks representing the study sample were collected and analyzed using a time series method covering a period of eight years, from 2011 to 2018. The resolution data were analyzed using the statistical program SSPS. The study concluded that the unrealized gains or losses of fair value forecasted through comprehensive income have a high predictive power of earnings quality. The results also prove that the unrealized gains or losses of fair value forecasted through net income have a high predictive power of earnings quality in the Jordanian commercial banks. The regression and correlation coefficient analyses also refer to a strong magnitude between the two variables, the dependent variable (fair value accounting) and the independent variable (earnings predictability).

Keywords: Earnings quality; Earnings predictability; Commercial banks; Fair value accounting; Financial statements; Historical cost. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/2032/3244 (application/pdf)
https://archive.aessweb.com/index.php/5002/article/view/2032/7290 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:10:y:2020:i:12:p:1466-1479:id:2032

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().