Speaker: LIAO Lin，Associate Professor, RIEM, SWUFE
Host: FU Shihe, Associate Professor, RIEM
Time: 2:30pm-4:00pm, Mar.28, Friday
Venue: H513 Yide Hall, Liulin Campus
Abstract: This paper investigates the relative and incremental value relevance of financial assets and liabilities measured at fair value and historical cost using a set of sample financial institutions from 25 European countries over the period 2006-2010. Relative value relevance means that one measure alone provides greater information content than another measure. On the other hand, incremental value relevance means that one measure provides information incremental to that provided by another measure. Our results show that, overall, fair value measurements are not relatively more value relevant than historical cost measurements or vice versa. However, by splitting the full sample into two periods, the financial crisis period and the non-financial crisis period, we find that, in the financial crisis period, financial assets and liabilities measured at fair value are relatively more value relevant than those measured at historical cost. On the other hand, both fair value and historical cost measures are found to be incrementally informative in both the financial crisis and non-financial crisis periods.
About the speaker: LIAO Lin just joined RIEM, SWUFE. He received his Ph.D. degree in accounting from University of New South Wales in 2014. His research areas are financial accounting, auditing, and Environmental Accounting. His publications appear in Journal of Contemporary Accounting & Economics，Australian Accounting Review, and British Accounting Review.
