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  • ABR-2014-0463 R5_271117

    Rights statement: This is an Accepted Manuscript of an article published by Taylor & Francis in Accounting and Business Research on 20/02/2018, available online: http://www.tandfonline.com/10.1080/00014788.1434608

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Do measurement-related fair value disclosures affect information asymmetry?

Research output: Contribution to Journal/MagazineJournal articlepeer-review

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Do measurement-related fair value disclosures affect information asymmetry? / Vergauwe, Skralan Nancy; Gaeremynck, Ann.
In: Accounting and Business Research, Vol. 49, No. 1, 02.01.2019, p. 68-94.

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Harvard

Vergauwe, SN & Gaeremynck, A 2019, 'Do measurement-related fair value disclosures affect information asymmetry?', Accounting and Business Research, vol. 49, no. 1, pp. 68-94. https://doi.org/10.1080/00014788.2018.1434608

APA

Vancouver

Vergauwe SN, Gaeremynck A. Do measurement-related fair value disclosures affect information asymmetry? Accounting and Business Research. 2019 Jan 2;49(1):68-94. Epub 2018 Feb 20. doi: 10.1080/00014788.2018.1434608

Author

Vergauwe, Skralan Nancy ; Gaeremynck, Ann. / Do measurement-related fair value disclosures affect information asymmetry?. In: Accounting and Business Research. 2019 ; Vol. 49, No. 1. pp. 68-94.

Bibtex

@article{67e92433b2354b5dba92d7ca4f6fa675,
title = "Do measurement-related fair value disclosures affect information asymmetry?",
abstract = "Using a sample of European real estate firms over the 2007–2010 period, this study provides some evidence that measurement-related fair value disclosures reduce information asymmetry. We find a negative association between the extent of fair value disclosures and the bid-ask spread, but no association with two additional measures of information asymmetry (zero returns and price impact). Contrary to our expectation, we fail to find evidence that firms using model estimates exclusively benefit the most from such additional disclosure. Analysing measurement errors (the absolute difference between the selling price of an asset and its fair value prior to sale), we find that firms that use model estimates exclusively and provide more measurement-related disclosures have lower errors and more accurate fair value estimates. In other words, if our lack of results is due to investors not using this additional disclosure this is to their detriment.",
keywords = "fair value, investment property, measurement-related disclosure",
author = "Vergauwe, {Skralan Nancy} and Ann Gaeremynck",
note = "This is an Accepted Manuscript of an article published by Taylor & Francis in Accounting and Business Research on 20/02/2018, available online: http://www.tandfonline.com/10.1080/00014788.1434608",
year = "2019",
month = jan,
day = "2",
doi = "10.1080/00014788.2018.1434608",
language = "English",
volume = "49",
pages = "68--94",
journal = "Accounting and Business Research",
issn = "0001-4788",
publisher = "Routledge",
number = "1",

}

RIS

TY - JOUR

T1 - Do measurement-related fair value disclosures affect information asymmetry?

AU - Vergauwe, Skralan Nancy

AU - Gaeremynck, Ann

N1 - This is an Accepted Manuscript of an article published by Taylor & Francis in Accounting and Business Research on 20/02/2018, available online: http://www.tandfonline.com/10.1080/00014788.1434608

PY - 2019/1/2

Y1 - 2019/1/2

N2 - Using a sample of European real estate firms over the 2007–2010 period, this study provides some evidence that measurement-related fair value disclosures reduce information asymmetry. We find a negative association between the extent of fair value disclosures and the bid-ask spread, but no association with two additional measures of information asymmetry (zero returns and price impact). Contrary to our expectation, we fail to find evidence that firms using model estimates exclusively benefit the most from such additional disclosure. Analysing measurement errors (the absolute difference between the selling price of an asset and its fair value prior to sale), we find that firms that use model estimates exclusively and provide more measurement-related disclosures have lower errors and more accurate fair value estimates. In other words, if our lack of results is due to investors not using this additional disclosure this is to their detriment.

AB - Using a sample of European real estate firms over the 2007–2010 period, this study provides some evidence that measurement-related fair value disclosures reduce information asymmetry. We find a negative association between the extent of fair value disclosures and the bid-ask spread, but no association with two additional measures of information asymmetry (zero returns and price impact). Contrary to our expectation, we fail to find evidence that firms using model estimates exclusively benefit the most from such additional disclosure. Analysing measurement errors (the absolute difference between the selling price of an asset and its fair value prior to sale), we find that firms that use model estimates exclusively and provide more measurement-related disclosures have lower errors and more accurate fair value estimates. In other words, if our lack of results is due to investors not using this additional disclosure this is to their detriment.

KW - fair value

KW - investment property

KW - measurement-related disclosure

U2 - 10.1080/00014788.2018.1434608

DO - 10.1080/00014788.2018.1434608

M3 - Journal article

VL - 49

SP - 68

EP - 94

JO - Accounting and Business Research

JF - Accounting and Business Research

SN - 0001-4788

IS - 1

ER -