Fair Value Accounting and the Cost of Equity Capital: The Moderating Effect of Risk Disclosure
| Autor: | Aisyah Abdul Rahman, Radziah Abdul Latiff, Ashwag Dignah, Zulkefly Abdul Karim |
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| Rok vydání: | 2017 |
| Předmět: |
medicine.medical_specialty
050208 finance Actuarial science Mark-to-market accounting business.industry 05 social sciences Accounting 050201 accounting Factor analysis of information risk Positive accounting lcsh:Social Sciences lcsh:H Cost of capital Fair value 0502 economics and business Accounting information system Management accounting medicine business Panel data |
| Zdroj: | SHS Web of Conferences, Vol 34, p 07005 (2017) |
| ISSN: | 2261-2424 |
| Popis: | Evidence thus far suggests fair value accounting poses risk and affects firms’ returns in some ways. This research, on a sample of Asian banks, improves the understanding of the information risk effect of fair value accounting by examining the moderating role of risk disclosure in the relationship between fair value accounting and the cost of equity capital. The results from a generalised method of moments on dynamic panel data analysis, show that risk disclosure mitigates the asymmetric information problem. Thus the findings contribute towards the standard setters’ effort in improving the practice of fair value accounting, and suggest that there are benefits in mandating disclosure especially for banks. |
| Databáze: | OpenAIRE |
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