Determinants of discretionary fair value measurements: the case of Level 3 assets in the banking sector
Jenny Stewart and
Accounting and Finance, 2018, vol. 58, issue 2, 561-597
The objective of our research was to respond to the call of Barth and Taylor () for more research to examine the role of discretion in fair value estimates. Specifically, we investigate factors that explain banksâ€™ accounting choices to use Level 3 valuation inputs from the fair value measurement hierarchy. Using handâ€ collected data from a sample of international banks during 2009â€“2013, we find that incentives to use discretionary Level 3 valuation inputs, which can provide an opportunity to manage earnings, are associated with both firmâ€ level and countryâ€ level determinants. Additional tests provide evidence that Level 3 â€˜transferâ€ inâ€™ behaviour is related to changes in bank characteristics.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:58:y:2018:i:2:p:561-597
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391
Access Statistics for this article
Accounting and Finance is currently edited by Robert Faff
More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().