Assessing the Valuation and Risk Implications of Fair Value Accounting for Liabilities: Evidence from FAS 159's Reported Gains and Losses

• Main Authors: CHUNG, Sung Gon, LOBO, Gerald, OW YONG, Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Fair value accounting; FAS 159; value relevance; risk relevance; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1051; https://ink.library.smu.edu.sg/context/soa_research/article/2050/viewcontent/sunggonchung_paper.pdf
• Institution: Singapore Management University

This study examines the implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter FAS 159). We find a positive correspondence between a firm’s FAS 159 fair value liability gains and losses and stock returns. Furt...