The Timeliness of Financial Reporting and Fair Values

Evidence from U.S. Banks

Hua-Wei Huang, Mai Dao, Wen Chi Sun

Research output: Contribution to journalArticle

Abstract

The public controversies over the implementation of Statement of Financial Accounting Standard No. 157 (SFAS 157) and its impact on the recent financial crisis motivate us to examine the association between fair values and reporting lags. With a sample of U.S. banking institutions, we find that less verifiable fair value information is associated with longer earnings announcement lag and audit report lag. Longer earnings announcement lags resulting from less verifiable fair value information are due to the additional time of managerial estimations. Less verifiable fair values may also result in longer audit report lags due to the added training for auditors. Our study extends the current literature on fair values and reporting lags. Our findings contribute to the contemporary research on the timeliness of financial information disclosures which promotes the efficient functioning of the economy. Moreover, the findings of our study may be of interest to the global regulators, investors and other financial statement users.

Original languageEnglish
Article number1750006
JournalReview of Pacific Basin Financial Markets and Policies
Volume20
Issue number1
DOIs
Publication statusPublished - 2017 Mar 1

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Timeliness
Fair value
Financial reporting
Lag
Audit reports
Earnings announcements
Financial information
Financial statements
Investors
Information disclosure
Banking
Financial accounting standards
Financial crisis
Auditors
Functioning

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

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The Timeliness of Financial Reporting and Fair Values : Evidence from U.S. Banks. / Huang, Hua-Wei; Dao, Mai; Sun, Wen Chi.

In: Review of Pacific Basin Financial Markets and Policies, Vol. 20, No. 1, 1750006, 01.03.2017.

Research output: Contribution to journalArticle

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