The paper aims at verifying whether the disclosures relating to fair value hierarchy under IFRS 7 is value relevant. Based on a sample of 138 European Commercial Banks over the time period 2008-2010, evidence suggests that only financial instruments classified in Level 1 are value relevant. They are also valued at a premium (about 10%) over the overall business value. Further analysis, conducted in order to investigate why the fair value of Level 2 and Level 3 is not relevant, found that the disclosure statements on transfers related to the Level 3 leads to a more relevant information on financial instruments.
La value relevance della fair value hierarchy nel settore bancario europeo
Giuseppe Di Martino
2013-01-01
Abstract
The paper aims at verifying whether the disclosures relating to fair value hierarchy under IFRS 7 is value relevant. Based on a sample of 138 European Commercial Banks over the time period 2008-2010, evidence suggests that only financial instruments classified in Level 1 are value relevant. They are also valued at a premium (about 10%) over the overall business value. Further analysis, conducted in order to investigate why the fair value of Level 2 and Level 3 is not relevant, found that the disclosure statements on transfers related to the Level 3 leads to a more relevant information on financial instruments.File in questo prodotto:
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