The Value-Relevance of Derivative Disclosures by Commercial Banks: A Comprehensive Study of Information Content Under SFAS Nos. 119 and 133

Wang, Li; Alam, Pervaiz; Makar, Stephen D.

doi:10.1007/s11156-005-5462-y

Cited by 50 publications

(29 citation statements)

References 27 publications

(24 reference statements)

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“…Prior studies examine the impact of changes of accounting information on value relevance by using the Ohlson (1995)'s price model (e.g., Aharony, Barniv and Falk, 2010;Ballas and Hevas, 2005;Bao and Chow, 1999;Barth, 1991;Burgstahler and Dichev, 1997;Eccher et al, 1996;Fang et al, 2013;Fung et al, 2010;Graham and King, 2000;Landsman, 1986;Liu et al, 2011;Liu and Liu, 2007;Wang et al, 2005). These studies focus on three main areas of value relevance: (1) the increase/decrease in value relevance of accounting information due to the application of environmental changes or new accounting standards (Aharony, Barniv and Falk., 2010;Ahmed, et al, 2006;Brown, et al, 1999;Chen, et al, 2001;Collins, et al, 1997;Fang, et al, 2013;Jaggi and Zhao, 2002;Lin and Chen, 2005;Wang, et al, 2005).…”

Section: Earnings Management and Value Relevancementioning

confidence: 99%

Value relevance, earnings management and corporate governance in China

Shan

2015

Emerging Markets Review

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Section: Earnings Management and Value Relevancementioning

confidence: 99%

Value relevance, earnings management and corporate governance in China

Shan

2015

Emerging Markets Review

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“…Work shows that disclosures are both value relevant (Seow and Tam, 2002;Wang, Alam and Makar, 2005) and informative (Campbell, Chen, Dhaliwal, Lu, and Steele, 2011;Kravet and Muslu, 2013).…”

Section: Introductionmentioning

confidence: 99%

An examination of international accounting standard-setting due process and the implications for legitimacy

Bamber

McMeeking

2016

The British Accounting Review

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This paper explores the due process of accounting standard-setting by focusing on relative levels of stakeholder and jurisdictional influence. We draw on legitimacy theory to explain our findings and ask what implications any bias might have for the IASB. This study extends the standard-setting literature in three ways. First, we create a weighted coding system to analyse the content of comment letters. Second, we test for differences in the acceptance rate of comments made by stakeholders and by jurisdictions. Third, we analyse IASB discussion documentation that sheds light on the decision-making process. Previous studies have focused on whether outcome-oriented proposals are 'influential' (persuasive) by focusing on success rates measured as proposed changes being accepted. We widen this definition to include whether constituents' views are discussed. We find that accounting firms appear to have significantly less influence than other stakeholders. We also find that the IASB reacts less favourably to UK proposals but comments from the US are more likely to be discussed. A lack of fairness (real or perceived) could jeopardise perceptions of the procedural legitimacy of the due process and ultimately impair the IASB's cognitive legitimacy. Fogarty's (1994) review of the FASB standard-setting process identified a series of constraints, opportunities and dilemmas. The question of whether certain stakeholder groups hold greater levels of (relative) influence has been the subject of much work and researchers have studied this phenomenon in both domestic and international contexts (e.g. McEnroe, 1991, 1998; Kwok and Sharp, 2005; Cortese, Irvine and Kaidonis, 2010). Almost invariably, influence and legitimacy are considered together (Hussein and Ketz, 1991;McEnroe, 1993;Tutticci, Dunstan and Holmes, 1994;Suchman, 1995;Larson, 2002;Chua and Taylor, 2008;Burlaud and Colasse, 2011;Danjou and Walton, 2012). This paper reviews the IASB's standard-setting due process in relation to the complex and This study is motivated, at least in part, by criticisms of, and challenges to, the IASB's procedural legitimacy (e.g. Larson and Herz, 2013;Burlaud and Colasse, 2011; Kwok and Sharp, 2005). This is an important issue within an accounting standard-setting context. Procedural legitimacy is a type of moral legitimacy which can be created (lost), maintained, and built (impaired) according to levels of perceived independence and impartiality (Suchman, 1995). Suchman (1995) distinguishes legitimacy into three primary forms: pragmatic, moral and cognitive.

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“…y posteriormente el SFAS 133 obligó a que todos los derivados aparecieran en balance por su valor razonable (y permitió la aplicación de la contabilidad de coberturas). Wang et al (2005), llevaron a cabo una investigación empírica acerca de la relevancia de los desgloses de derivados bajo SFAS 119 y SFAS 133 (esto es, utilizaron una serie de datos continua de bancos desde 1994 a 2002). Los resultados fueron que la información desglosada acerca del nominal de los derivados es relevante (value relevant), esto es, ofrece información incremental con relación al valor en libros y los resultados.…”

Section: Análisis De La Relevancia Del Valor Razonableunclassified

El valor razonable en la contabilidad de los instrumentos financieros. Análisis desde una perspectiva histórica

Díaz

2017

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RESUMENEl objetivo del presente artículo se centra en analizar si, desde finales del siglo XIX hasta el presente, ha existido algún momento en el tiempo en el que haya habido un modelo contable de instrumentos financieros (Modelo de Coste, Modelo Mixto o Modelo de Valor Razonable Total) que haya alcanzado plena "legitimidad" en alguna de las dimensiones establecidas siguiendo los principios enunciados por Suchman (1995).La principal contribución que queremos lograr es obtener nuevas evidencias sobre la conveniencia de aplicar el Modelo de Valor Razonable completo a la contabilidad de los instrumentos financieros. Hemos descubierto que, incluso en el período de los años 40 a los 70, en el que el Modelo de Coste prevaleció de manera clara en las prácticas contables, muchos investigadores e instituciones continuaron defendiendo el uso del valor razonable. En ese período podría incluso hablarse de legitimidad del Modelo de Coste, pero simplemente desde un punto de vista pragmático, considerando su origen y continuidad. Se observan igualmente aspectos morales relacionados con la prevención de otra crisis financiera. Hoy en día, podemos decir que el Modelo Mixto está plenamente establecido en las prácticas contables, pero carece de una legitimidad total, conclusión avalada por las críticas de los propios organismos reguladores, el IASB y el FASB. ABSTRACTThe aim of this article is to analyze whether, from the end of the nineteenth century until the present, there has been any moment in time in which there has been an accounting model for financial instruments (Cost Model, Mixed Model or Full Fair Value Model) that has reached full "legitimacy" in some of the established dimensions following the principles stated by Suchman (1995).The main contribution we want to achieve is to provide new evidence about the convenience of applying the Full Fair Value Model for financial instruments. We have found that, even in the period from the 40s to the 70s in which Cost Model prevailed in a clear way in accounting practices, many researchers and institutions continued to defend the use of fair value. In this period, we could perhaps talk about 1 a. Enviado/Submitted: 03-03-17 b. Aceptado/Accepted: 12-06-17

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The Value-Relevance of Derivative Disclosures by Commercial Banks: A Comprehensive Study of Information Content Under SFAS Nos. 119 and 133

Cited by 50 publications

References 27 publications

Value relevance, earnings management and corporate governance in China

Value relevance, earnings management and corporate governance in China

An examination of international accounting standard-setting due process and the implications for legitimacy

El valor razonable en la contabilidad de los instrumentos financieros. Análisis desde una perspectiva histórica

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