The Effects of Firm and Board Characteristics on Fair Value Measurements: Evidence from Financial Industry

• Main Authors: JIA ZHEN LI, 李佳臻
• Other Authors: 許慧雯
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/xffau9

碩士 === 逢甲大學 === 財稅學系 === 103 === A fair value measurement assumes firms exchange their assets and liabilities in an orderly manner with market participants. Firms are required to catalog and determine the exit prices based upon a hierarchy of three input levels which are formulated in IFRS 13. There is no difference in the application of IFRS 13 among different industries. However, compare to other industries, financial industry has 80% of financial instruments in their assets and liabilities. Therefore, the disclosure of fair value measurements under IFRS13 in financial industry is more significant than the disclosures in other industries. The purpose of this study is to examine the effects of firm and board characteristics on fair value measurements in financial industry. Using a sample of 71 yearly observations from 28 banks and 3 securities companies over 2010-2013, this study finds companies with larger firm size, lower returns on assets use more Level 2 inputs on valuing their assets and liabilities. In addition, this paper also finds that firms with larger board size use less Level 3 inputs on valuing their assets and liabilities.