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Fair Value Empirical Studies: An Overview On Acconting Research Literature

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  • Carmen Giorgiana Bonaci
  • Adriana Tiron Tudor

Abstract

Our paper develops a literature review on fair value studies. The purpose of the study is to synthesize the main results of accounting research literature empirically approaching fair value measurement. Therefore, our analysis imposes the use of literature review methodology. After briefly introducing the concept of fair value, the first part of the paper follows the shift taking place in accounting paradigms when it comes to accounting models. The main part of the paper discusses empirical studies on fair value by closely analyzing their research design, the employed research methodology and the obtained results. The originality of the paper as well as its contribution consist in offering a comprehensive overview on studies in accounting research literature that analyze fair value accounting through an empirical approach. Discussing the relevance and reliability of such studies further impacts upon the relevance of their results and how they can be used.

Suggested Citation

  • Carmen Giorgiana Bonaci & Adriana Tiron Tudor, 2011. "Fair Value Empirical Studies: An Overview On Acconting Research Literature," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-1.
  • Handle: RePEc:alu:journl:v:2:y:2011:i:13:p:1
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    References listed on IDEAS

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    1. Katarzyna Kosmala, 2005. "True and Fair View or rzetelny i jasny obraz ? A survey of polish practitioners," European Accounting Review, Taylor & Francis Journals, vol. 14(3), pages 579-602.
    2. Holthausen, Robert W. & Watts, Ross L., 2001. "The relevance of the value-relevance literature for financial accounting standard setting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 3-75, September.
    3. Barth, ME & Clinch, G, 1998. "Revalued financial, tangible, and intangible assets: Associations with share prices and non-market-based value estimates," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 199-233.
    4. Khurana, Inder K. & Kim, Myung-Sun, 2003. "Relative value relevance of historical cost vs. fair value: Evidence from bank holding companies," Journal of Accounting and Public Policy, Elsevier, vol. 22(1), pages 19-42.
    5. Gary C. Biddle & Gim S. Seow & Andrew F. Siegel, 1995. "Relative versus Incremental Information Content," Contemporary Accounting Research, John Wiley & Sons, vol. 12(1), pages 1-23, September.
    6. Ahmed, Anwer S. & Takeda, Carolyn, 1995. "Stock market valuation of gains and losses on commercial banks' investment securities An empirical analysis," Journal of Accounting and Economics, Elsevier, vol. 20(2), pages 207-225, September.
    7. Rayman, R.A., 2007. "Fair value accounting and the present value fallacy: The need for an alternative conceptual framework," The British Accounting Review, Elsevier, vol. 39(3), pages 211-225.
    8. Bernard, Vl & Merton, Rc & Palepu, Kg, 1995. "Mark-To-Market Accounting For Banks And Thrifts - Lessons From The Danish Experience," Journal of Accounting Research, Wiley Blackwell, vol. 33(1), pages 1-32.
    9. Wong, MHF, 2000. "The Association between SFAS No. 119 derivatives disclosures and the foreign exchange risk exposure of manufacturing firms," Journal of Accounting Research, Wiley Blackwell, vol. 38(2), pages 387-417.
    10. Barth, Mary E. & Beaver, William H. & Landsman, Wayne R., 2001. "The relevance of the value relevance literature for financial accounting standard setting: another view," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 77-104, September.
    11. Wayne Landsman, 2007. "Is fair value accounting information relevant and reliable? Evidence from capital market research," Accounting and Business Research, Taylor & Francis Journals, vol. 37(S1), pages 19-30.
    12. Matis Dumitru & Bonaci Carmen Giorgiana, 2011. "Recent Developments Of The Financial Reporting Model: Theoretical Studies In Review," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 629-635, July.
    13. Dumitru MATIS & Carmen Giorgiana BONACI, 2008. "Fair Value Accounting for Financial Instruments – Conceptual Approach and Implications," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 1(2), pages 191-206.
    14. Barth, Mary E. & Landsman, Wayne R. & Wahlen, James M., 1995. "Fair value accounting: Effects on banks' earnings volatility, regulatory capital, and value of contractual cash flows," Journal of Banking & Finance, Elsevier, vol. 19(3-4), pages 577-605, June.
    15. Richard Dietrich, J. & Harris, Mary S. & MullerIII, Karl A., 2000. "The reliability of investment property fair value estimates," Journal of Accounting and Economics, Elsevier, vol. 30(2), pages 125-158, October.
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    Cited by:

    1. Diana COZMA IGHIAN, 2015. "International Accounting Convergence in the Field of Fair Value Measurement," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 23-28.
    2. Zamora-Ramírez, Constancio & Morales-Díaz, José, 2018. "The Use of Fair Value Measurement in Financial Reporting: A Literature Review/La Utilización del Valor Razonable en la Contabilidad: Revisión de la Literatura," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 489-514, Mayo.
    3. NICHITA Mirela & GAJEVSZKY Andra, 2015. "Evolution And Quality Of Financial Reporting In Romania: An Overview From 1990 To Present," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 949-958, July.

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    More about this item

    Keywords

    Fair value; accounting model; empirical studies; research literature;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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