Bank Risk and the Value Relevance of Fair Value Gains and Losses

• Main Authors: LIM, Chu Yeong, Walker, Martin, LEE, Edward, Kausar, Asad
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/908
• Institution: Singapore Management University

This paper studies the value relevance of fair value gains and losses for an international sample of banks. We investigate if the value relevance of fair value gains and losses increases or decreases with bank risk. One possibility is that, as risk increases, the scope for subjectivity in fair value...