The Impact of a Major Financial Event on the Value Relevance of Financial Instruments Fair Value
Date of Original Version
In this erratically changing environment, it is important to recognize how the value relevance of accounting information adopts to changes. This study investigates how the incremental explanatory power of fair-value accounting information on financial instruments was affected during the 2008 financial crisis in Taiwan. Results suggest that during the financial meltdown, the value-relevance of fair-value accounting information decreased significantly. Furthermore, the value relevance of part of fair-value accounting information ceased to exist. The results suggest that the value relevance of fair-value accounting information on financial instruments varies with the environment but is not affected by company characteristics. © 2013 Copyright Taylor and Francis Group, LLC.
Journal of Asia-Pacific Business
Fang, Ssu Yang, Shaw K. Chen, and Chung Jen Fu. "The Impact of a Major Financial Event on the Value Relevance of Financial Instruments Fair Value." Journal of Asia-Pacific Business 14, 2 (2013): 130-153. doi:10.1080/10599231.2013.747853.