Who's the Fairest of Them All? Evidence from Closed-End Funds.

• Autores: Alastair Lawrence, Subprasiri Siriviriyakul, Richard G. Sloan
• Localización: Accounting review: A quarterly journal of the American Accounting Association, ISSN 0001-4826, Vol. 91, Nº 1, 2016, págs. 207-227
• Idioma: inglés
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• Dialnet Métricas: 1 Cita
• Resumen

  • Prior research examining the ASC 820 fair value hierarchy concludes that Level 3 fair value measurements are significantly less value-relevant than Level 1 and Level 2 fair value measurements. We reevaluate this conclusion using the closed-end fund setting, in which fair value measurements are available for substantially all assets. Contrary to prior research, we find that Level 3 fair values are of similar value relevance to Level 1 and Level 2 fair values. Our findings suggest that the results in previous research are attributable to correlated omitted variable bias arising from the absence of fair value data for most assets. [ABSTRACT FROM AUTHOR]