IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v26y2019i1-2p38-63.html
   My bibliography  Save this article

The fair value of investment property and stock price crash risk

Author

Listed:
  • Audrey Wen-hsin Hsu
  • Grace Shu-Hsing Wu

Abstract

This study examines whether recognizing fair value of investment property is more associated with stock price crash risk than recognizing historical cost of investment property. Using a sample of publicly traded firms that held investment property from 2007 through 2011 in China, we find that firms that recognize investment property at fair value in China experience an increase in crash risk. The findings suggest that fair value reporting for investment property in China does not convey private managerial information regarding firm value and could be a channel for concealing information. In additional analysis, we also find evidence that the association between fair value reporting and increased crash risk is mitigated in firms with strong corporate governance.

Suggested Citation

  • Audrey Wen-hsin Hsu & Grace Shu-Hsing Wu, 2019. "The fair value of investment property and stock price crash risk," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 26(1-2), pages 38-63, January.
    • Handle: RePEc:taf:raaexx:v:26:y:2019:i:1-2:p:38-63
    DOI: 10.1080/16081625.2019.1545895
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2019.1545895
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2019.1545895?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Johannes Thesing & Patrick Velte, 2021. "Do fair value measurements affect accounting-based earnings quality? A literature review with a focus on corporate governance as moderator," Journal of Business Economics, Springer, vol. 91(7), pages 965-1004, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:26:y:2019:i:1-2:p:38-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.