Value-relevance of Banks' Fair Disclosures Under SFAS 107
Author | : Mary E. Barth |
Publisher | : |
Total Pages | : 45 |
Release | : 1994 |
ISBN-10 | : OCLC:34072948 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Value-relevance of Banks' Fair Disclosures Under SFAS 107 written by Mary E. Barth and published by . This book was released on 1994 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relation between fair value disclosures under Statement of Financial Accounting Standards No. 107 (SFAS 107) and bank share prices. As predicted, we find that fair values of securities and loans possess significant incremental explanatory power and are reflected positively in bank share prices. Contrary to predictions, fair values of deposits and off-balance sheet items provide no incremental explanatory power. We also find an interaction effect between the fair value of loans and nonperforming loans in specifications that permit cross-sectional differences in the loans' fair value coefficient. Finally, we find that core deposits are reflected positively in bank share prices.