Does fair value accounting contribute to market price volatility? An experimental approach
This paper contributes to the debate on the impact of accounting measurement rules for financial assets. We examine the association between fair value accounting for financial assets and market price volatility for nonfinancial firms in an experimental setting. One group of participants was provided...
Gespeichert in:
| Veröffentlicht in: | Accounting and finance (Parkville) 2014-12, Vol.54 (4), p.1033-1061 |
|---|---|
| Hauptverfasser: | , , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 1061 |
|---|---|
| container_issue | 4 |
| container_start_page | 1033 |
| container_title | Accounting and finance (Parkville) |
| container_volume | 54 |
| creator | Brousseau, Carl Gendron, Michel Bélanger, Philippe Coupland, Jonathan |
| description | This paper contributes to the debate on the impact of accounting measurement rules for financial assets. We examine the association between fair value accounting for financial assets and market price volatility for nonfinancial firms in an experimental setting. One group of participants was provided with financial statements where held‐for‐trading securities were reported at fair market value (FVA). Another group received financial statements with investments reported at historical cost (HCA). Controlling for accounting data, we find no systematic difference between FVA and HCA for three different measures of market price volatility, despite higher earnings volatility and marginally heavier trading under FVA. |
| doi_str_mv | 10.1111/acfi.12030 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_1638895057</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>3533515741</sourcerecordid><originalsourceid>FETCH-LOGICAL-c4030-acce811f06ee4988efd24842a4cee6cf45cd77546969e4c310e93be761f7a7263</originalsourceid><addsrcrecordid>eNp9kM1OwzAQhC0EEqVw4QkscUNKsWPHjk-oKvRHqsoFBOJiue4GXEJSHKe0b49LgSN72cs3OzuD0DklPRrnytjC9WhKGDlAHcqFTESqng5Rh-SUJBlT9BidNM2SEEIl4R30fFNDgwvjPF6bsgVsrK3bKrjqBdu6Ct7N2wA41Pjd-DcIeOWdBbyuSxNc6cL2GvcrDJsVePcOVTAlNquVr419PUVHhSkbOPvZXfQwvL0fjJPp3Wgy6E8Ty-OfSTSEnNKCCACu8hyKRcpznhpuAYQteGYXUmZcKKGAW0YJKDYHKWghjUwF66KL_d1o-9FCE_Sybn0VLTUVLM9VRjIZqcs9ZX3dNB4KHZPETFtNid51p3fd6e_uIkz38KcrYfsPqfuD4eRXk-w1rgmw-dPE1rSQTGb6cTbSM87UWGUzPWRf30iA0w</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1638895057</pqid></control><display><type>article</type><title>Does fair value accounting contribute to market price volatility? An experimental approach</title><source>Wiley Online Library Journals Frontfile Complete</source><source>Business Source Complete</source><creator>Brousseau, Carl ; Gendron, Michel ; Bélanger, Philippe ; Coupland, Jonathan</creator><contributor>Monroe, Gary ; Monroe, Gary</contributor><creatorcontrib>Brousseau, Carl ; Gendron, Michel ; Bélanger, Philippe ; Coupland, Jonathan ; Monroe, Gary ; Monroe, Gary</creatorcontrib><description>This paper contributes to the debate on the impact of accounting measurement rules for financial assets. We examine the association between fair value accounting for financial assets and market price volatility for nonfinancial firms in an experimental setting. One group of participants was provided with financial statements where held‐for‐trading securities were reported at fair market value (FVA). Another group received financial statements with investments reported at historical cost (HCA). Controlling for accounting data, we find no systematic difference between FVA and HCA for three different measures of market price volatility, despite higher earnings volatility and marginally heavier trading under FVA.</description><identifier>ISSN: 0810-5391</identifier><identifier>EISSN: 1467-629X</identifier><identifier>DOI: 10.1111/acfi.12030</identifier><language>eng</language><publisher>Clayton: Blackwell Publishing Ltd</publisher><subject>Accounting ; Accounting standards ; Experimental markets ; Fair market value ; Fair value ; Fair value accounting ; Financial statements ; Market prices ; Securities trading ; Stock price volatility ; Studies ; Volatility</subject><ispartof>Accounting and finance (Parkville), 2014-12, Vol.54 (4), p.1033-1061</ispartof><rights>2013 AFAANZ</rights><rights>Copyright Blackwell Publishing Ltd. Dec 2014</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c4030-acce811f06ee4988efd24842a4cee6cf45cd77546969e4c310e93be761f7a7263</citedby><cites>FETCH-LOGICAL-c4030-acce811f06ee4988efd24842a4cee6cf45cd77546969e4c310e93be761f7a7263</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://onlinelibrary.wiley.com/doi/pdf/10.1111%2Facfi.12030$$EPDF$$P50$$Gwiley$$H</linktopdf><linktohtml>$$Uhttps://onlinelibrary.wiley.com/doi/full/10.1111%2Facfi.12030$$EHTML$$P50$$Gwiley$$H</linktohtml><link.rule.ids>314,777,781,1412,27905,27906,45555,45556</link.rule.ids></links><search><contributor>Monroe, Gary</contributor><contributor>Monroe, Gary</contributor><creatorcontrib>Brousseau, Carl</creatorcontrib><creatorcontrib>Gendron, Michel</creatorcontrib><creatorcontrib>Bélanger, Philippe</creatorcontrib><creatorcontrib>Coupland, Jonathan</creatorcontrib><title>Does fair value accounting contribute to market price volatility? An experimental approach</title><title>Accounting and finance (Parkville)</title><addtitle>Account Finance</addtitle><description>This paper contributes to the debate on the impact of accounting measurement rules for financial assets. We examine the association between fair value accounting for financial assets and market price volatility for nonfinancial firms in an experimental setting. One group of participants was provided with financial statements where held‐for‐trading securities were reported at fair market value (FVA). Another group received financial statements with investments reported at historical cost (HCA). Controlling for accounting data, we find no systematic difference between FVA and HCA for three different measures of market price volatility, despite higher earnings volatility and marginally heavier trading under FVA.</description><subject>Accounting</subject><subject>Accounting standards</subject><subject>Experimental markets</subject><subject>Fair market value</subject><subject>Fair value</subject><subject>Fair value accounting</subject><subject>Financial statements</subject><subject>Market prices</subject><subject>Securities trading</subject><subject>Stock price volatility</subject><subject>Studies</subject><subject>Volatility</subject><issn>0810-5391</issn><issn>1467-629X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2014</creationdate><recordtype>article</recordtype><recordid>eNp9kM1OwzAQhC0EEqVw4QkscUNKsWPHjk-oKvRHqsoFBOJiue4GXEJSHKe0b49LgSN72cs3OzuD0DklPRrnytjC9WhKGDlAHcqFTESqng5Rh-SUJBlT9BidNM2SEEIl4R30fFNDgwvjPF6bsgVsrK3bKrjqBdu6Ct7N2wA41Pjd-DcIeOWdBbyuSxNc6cL2GvcrDJsVePcOVTAlNquVr419PUVHhSkbOPvZXfQwvL0fjJPp3Wgy6E8Ty-OfSTSEnNKCCACu8hyKRcpznhpuAYQteGYXUmZcKKGAW0YJKDYHKWghjUwF66KL_d1o-9FCE_Sybn0VLTUVLM9VRjIZqcs9ZX3dNB4KHZPETFtNid51p3fd6e_uIkz38KcrYfsPqfuD4eRXk-w1rgmw-dPE1rSQTGb6cTbSM87UWGUzPWRf30iA0w</recordid><startdate>201412</startdate><enddate>201412</enddate><creator>Brousseau, Carl</creator><creator>Gendron, Michel</creator><creator>Bélanger, Philippe</creator><creator>Coupland, Jonathan</creator><general>Blackwell Publishing Ltd</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope></search><sort><creationdate>201412</creationdate><title>Does fair value accounting contribute to market price volatility? An experimental approach</title><author>Brousseau, Carl ; Gendron, Michel ; Bélanger, Philippe ; Coupland, Jonathan</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4030-acce811f06ee4988efd24842a4cee6cf45cd77546969e4c310e93be761f7a7263</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2014</creationdate><topic>Accounting</topic><topic>Accounting standards</topic><topic>Experimental markets</topic><topic>Fair market value</topic><topic>Fair value</topic><topic>Fair value accounting</topic><topic>Financial statements</topic><topic>Market prices</topic><topic>Securities trading</topic><topic>Stock price volatility</topic><topic>Studies</topic><topic>Volatility</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Brousseau, Carl</creatorcontrib><creatorcontrib>Gendron, Michel</creatorcontrib><creatorcontrib>Bélanger, Philippe</creatorcontrib><creatorcontrib>Coupland, Jonathan</creatorcontrib><collection>Istex</collection><collection>CrossRef</collection><jtitle>Accounting and finance (Parkville)</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Brousseau, Carl</au><au>Gendron, Michel</au><au>Bélanger, Philippe</au><au>Coupland, Jonathan</au><au>Monroe, Gary</au><au>Monroe, Gary</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Does fair value accounting contribute to market price volatility? An experimental approach</atitle><jtitle>Accounting and finance (Parkville)</jtitle><addtitle>Account Finance</addtitle><date>2014-12</date><risdate>2014</risdate><volume>54</volume><issue>4</issue><spage>1033</spage><epage>1061</epage><pages>1033-1061</pages><issn>0810-5391</issn><eissn>1467-629X</eissn><abstract>This paper contributes to the debate on the impact of accounting measurement rules for financial assets. We examine the association between fair value accounting for financial assets and market price volatility for nonfinancial firms in an experimental setting. One group of participants was provided with financial statements where held‐for‐trading securities were reported at fair market value (FVA). Another group received financial statements with investments reported at historical cost (HCA). Controlling for accounting data, we find no systematic difference between FVA and HCA for three different measures of market price volatility, despite higher earnings volatility and marginally heavier trading under FVA.</abstract><cop>Clayton</cop><pub>Blackwell Publishing Ltd</pub><doi>10.1111/acfi.12030</doi><tpages>29</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0810-5391 |
| ispartof | Accounting and finance (Parkville), 2014-12, Vol.54 (4), p.1033-1061 |
| issn | 0810-5391 1467-629X |
| language | eng |
| recordid | cdi_proquest_journals_1638895057 |
| source | Wiley Online Library Journals Frontfile Complete; Business Source Complete |
| subjects | Accounting Accounting standards Experimental markets Fair market value Fair value Fair value accounting Financial statements Market prices Securities trading Stock price volatility Studies Volatility |
| title | Does fair value accounting contribute to market price volatility? An experimental approach |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-18T13%3A12%3A55IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Does%20fair%20value%20accounting%20contribute%20to%20market%20price%20volatility?%20An%20experimental%20approach&rft.jtitle=Accounting%20and%20finance%20(Parkville)&rft.au=Brousseau,%20Carl&rft.date=2014-12&rft.volume=54&rft.issue=4&rft.spage=1033&rft.epage=1061&rft.pages=1033-1061&rft.issn=0810-5391&rft.eissn=1467-629X&rft_id=info:doi/10.1111/acfi.12030&rft_dat=%3Cproquest_cross%3E3533515741%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1638895057&rft_id=info:pmid/&rfr_iscdi=true |