| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 105 === With the issue of International Financial Reporting Standard 13: Fair Value Measurement in 2013. Taiwan started to set a clear specification on fair value accounting. However, in the past, there is little literature on the fair value hierarchy and IFRS 13 in Taiwan. Therefore, this study aims to investigate the effect of the disclosure of Level 3 fair value information on value relevance. This study investigates two research questions, which are that whether there is a positive relationship between the completeness of the disclosure of Level 3 fair value information and value relevance, and whether the ability in accounting of top managers could increase or decrease the value relevance of Level 3 fair value information, respectively.
This study proposes a comprehensive score to measure the completeness of the disclosure of the Level 3 fair value information, and the information of the Level 3 fair value is manually collected from the annual reports of listed firms from 2013 to 2015. Furthermore, the ratio of the managers receiving the Certified Public Accountant (CPA) certifications among top managers is used to measure the accounting ability of top managers.
The empirical results show that the value relevance of the Level 3 fair value information is positively related to the completeness of the disclosure. This result suggests that more information related to the Level 3 fair value disclosed in annual reports helps investors to reflect the Level 3 fair value information on stock prices. The empirical results also suggest that the accounting ability of top managers could enhance the value relevance of the Level 3 fair value information.
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