The effect of fair value accounting on the performance evaluation role of earnings

被引：18
|
作者：
DeFond, Mark [1 ]
Hu, Jinshuai [2 ]
Hung, Mingyi [3 ]
Li, Siqi [4 ]
机构：
[1] Univ Southern Calif, Los Angeles, CA 90007 USA
[2] Xiamen Univ, Xiamen, Peoples R China
[3] Hong Kong Univ Sci & Technol, Hong Kong, Peoples R China
[4] Santa Clara Univ, Santa Clara, CA 95053 USA
来源：
JOURNAL OF ACCOUNTING & ECONOMICS | 2020年 / 70卷 / 2-3期
基金：
中国国家自然科学基金;
关键词：
Fair value accounting; Historical cost accounting; Cash pay; Accounting earnings; Management performance evaluation; IFRS adoption; MANDATORY IFRS ADOPTION; EXECUTIVE-COMPENSATION; RESTRUCTURING CHARGES; VOLUNTARY ADOPTION; STANDARDS; INFORMATION; STEWARDSHIP; SENSITIVITY; GAAP; BIAS;
D O I：
10.1016/j.jacceco.2020.101341
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We study the effect of fair value accounting on the association between net income and cash pay following the 2005 worldwide adoption of IFRS. We find that, while IFRS's non-fair-value provisions are associated with an increase in this association, its fair value provisions are associated with a decrease in this association. Overall, we contribute to the literature on the usefulness of fair value accounting by presenting evidence that fair value accounting is associated with a decrease in this association. Under assumptions that we detail and subject to caveats that we detail, our evidence suggests that fair value accounting may reduce the usefulness of earnings in evaluating management performance. (C) 2020 Elsevier B.V. All rights reserved.
引用
收藏
页数：23
相关论文
共 50 条
  • [1] Discussion of "The effect of fair value accounting on the performance evaluation role of earnings"
    Zhang, Ivy Xiying
    Zhang, Yong
    [J]. JOURNAL OF ACCOUNTING & ECONOMICS, 2020, 70 (2-3):
  • [2] Changes in the measurement of fair value: Implications for accounting earnings
    Fargher, Neil
    Zhang, John Ziyang
    [J]. ACCOUNTING FORUM, 2014, 38 (03) : 184 - 199
  • [3] Fair Value Accounting and Earnings Quality of Listed Finns in Nigeria
    Ibidunni, Oyebisi
    Francis, Iyoha
    Samuel, Fakile
    David, Adesanmi
    Adedayo, Adedeji
    [J]. INNOVATION MANAGEMENT AND EDUCATION EXCELLENCE THROUGH VISION 2020, VOLS I -XI, 2018, : 6250 - 6257
  • [4] The impact of fair value accounting on earnings quality in eastern European countries
    Sodan, Slavko
    [J]. EMERGING MARKETS QUERIES IN FINANCE AND BUSINESS 2014, EMQFB 2014, 2015, 32 : 1769 - 1786
  • [5] Fair Value Accounting and Earnings Persistence: Evidence from International Banks
    Yao, Daifei
    Percy, Majella
    Stewart, Jenny
    Hu, Fang
    [J]. JOURNAL OF INTERNATIONAL ACCOUNTING RESEARCH, 2018, 17 (01) : 47 - 68
  • [6] Fair value accounting, earnings management, and the case of bargain purchase gain
    Lilien, Steven
    Sarath, Bharat
    Yan, Yan
    [J]. ASIAN REVIEW OF ACCOUNTING, 2020, 28 (02) : 229 - 253
  • [7] The Role of Fair Value Accounting in Promoting Government Accountability
    Rodriguez Bolivar, Manuel Pedro
    Navarro Galera, Andres
    [J]. ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES, 2012, 48 (03): : 348 - 386
  • [8] FAIR VALUE ACCOUNTING - EFFECTS ON BANKS EARNINGS VOLATILITY, REGULATORY CAPITAL, AND VALUE OF CONTRACTUAL CASH FLOWS
    BARTH, ME
    LANDSMAN, WR
    WAHLEN, JM
    [J]. JOURNAL OF BANKING & FINANCE, 1995, 19 (3-4) : 577 - 605
  • [9] The lack of impact of fair value accounting: a commentary on '"fair value" accounting as the normative Fisherian phase of accounting'
    Baker, Charles Richard
    [J]. ACCOUNTING HISTORY REVIEW, 2018, 28 (03) : 191 - 198
  • [10] The role of Irving Fisher in the development of fair value accounting thought
    Markarian, Garen
    [J]. ACCOUNTING HISTORY REVIEW, 2018, 28 (03) : 181 - 190
12345