Access the full text.
Sign up today, get DeepDyve free for 14 days.
J. Hunton, R. McEwen
An assessment of the relation between analysts' earnings forecast accuracy, motivational incentives, and cognitive information search strategy
Anwer Ahmed, Emre Kilic, Gerald Lobo (2004)
Does Recognition Versus Disclosure Matter? Evidence from Value-Relevance of Banks' Recognized and Disclosed Derivative Financial InstrumentsSocial Science Research Network
C. Viger, R. Belzile, A. Anandarajan (2008)
Disclosure versus Recognition of Stock Option Compensation: Effect on the Credit Decisions of Loan OfficersBehavioral Research in Accounting, 20
Shelley Taylor, S. Fiske (1978)
Salience, Attention, and Attribution: Top of the Head PhenomenaAdvances in Experimental Social Psychology, 11
A. Tversky, D. Kahneman (1990)
Rational choice and the framing of decisionsThe Journal of Business, 59
U. Fischbacher (1999)
z-Tree: Zurich toolbox for ready-made economic experimentsExperimental Economics, 10
W. Elliott (2006)
Are Investors Influenced by Pro Forma Emphasis and Reconciliations in Earnings AnnouncementsThe Accounting Review, 81
R. Belzile, A. Fortin, C. Viger
Recognition versus disclosure of stock option compensation: an analysis of judgments and decisions of nonprofessional investors
W. Elliott, F. Hodge, Jane Kennedy, M. Pronk (2007)
Are M.B.A. Students a Good Proxy for Nonprofessional InvestorsThe Accounting Review, 82
Mary Barth, W. Beaver, W. Landsman (2001)
The Relevance of the Value Relevance Literature for Financial Accounting Standard Setting: Another ViewCorporate Finance and Organizations eJournal
Marc Picconi (2006)
The Perils of Pensions: Does Pension Accounting Lead Investors and Analysts Astray?The Accounting Review, 81
W. Landsman, James Ohlson (1990)
Evaluation of market efficiency for supplementary accounting disclosures: The case of pension assets and liabilities*Contemporary Accounting Research, 7
R. Lipe (2002)
Fair Valuing Debt Turns Deteriorating Credit Quality into Positive Signals for Boston ChickenAccounting Horizons, 16
Hassan Espahbodi, Pouran Espahbodi, Z. Rezaee, H. Tehranian (2002)
Stock price reaction and value relevance of recognition versus disclosure: the case of stock-based compensationJournal of Accounting and Economics, 33
E. Johnson
Expertise and decision making under uncertainty: performance and process
Paquita Davis-Friday, L. Folami, Chao-Shin Liu, H. Mittelstaedt (1999)
The Value Relevance of Financial Statement Recognition vs. Disclosure: Evidence from SFAS No. 106The Accounting Review, 74
R. Harper, W. Mister, Jerry Strawser (1987)
The Impact of New Pension Disclosure Rules on Perceptions of DebtJournal of Accounting Research, 25
Paquita Davis-Friday, Chao-Shin Liu, H. Mittelstaedt (2002)
Recognition and Disclosure Reliability: Evidence from SFAS No. 106Financial Accounting
Laureen Maines, Linda Mcdaniel (2000)
Effects of Comprehensive‐Income Characteristics on Nonprofessional Investors' Judgments: The Role of Financial‐Statement Presentation FormatThe Accounting Review, 75
R. Libby, M. Nelson, J. Hunton (2006)
Recognition v. Disclosure, Auditor Tolerance for Misstatement, and the Reliability of Stock-Compensation and Lease InformationJournal of Accounting Research, 44
D. Hirst, Patrick Hopkins (1998)
Comprehensive income reporting and analysts' valuation judgmentsJournal of Accounting Research, 36
Mary Barth, Leslie Hodder, Stephen Stubben (2008)
Fair Value Accounting for Liabilities and Own Credit RiskThe Accounting Review, 83
Robert Holthausen, R. Watts (2000)
The Relevance of the Value Relevance Literature for Financial Accounting Standard SettingCorporate Finance and Organizations eJournal
R. Ball, P. Brown (1968)
An empirical evaluation of accounting income numbersJournal of Accounting Research, 6
W. Shadish, Thomas Cook, Donald Campbell (2001)
Experimental and Quasi-Experimental Designs for Generalized Causal Inference
Wing Poon (2004)
Using Fair Value Accounting for Financial Instruments
R. Libby, M. Lipe (1992)
Incentives, Effort, And The Cognitive-Processes Involved In Accounting-Related JudgmentsJournal of Accounting Research, 30
Joan Luft, Michael Shields (2001)
Why Does Fixation Persist? Experimental Evidence on the Judgment Performance Effects of Expensing IntangiblesThe Accounting Review, 76
Lisa Koonce, Karen Nelson, Catherine Shakespeare (2011)
Judging the Relevance of Fair Value for Financial InstrumentsThe Accounting Review, 86
R. Belzile, Anne Fortin, C. Viger (2006)
Recognition versus Disclosure of Stock Option Compensation: An Analysis of Judgements and Decisions of Nonprofessional Investors*/CONSTATER OU PRÉSENTER PAR VOIE DE NOTE LA RÉMUNÉRATION SOUS FORME D'OPTIONS D'ACHAT D'ACTIONS: UNE ANALYSE DES JUGEMENTS ET DES DÉCISIONS DES INVESTISSEURS NON PROFESSIOAccounting Perspectives, 5
D. Hirst, Patrick Hopkins, James Wahlen (2004)
Fair values, income measurement, and bank analysts' risk and valuation judgmentsThe Accounting Review, 79
M.T. Seha
A perspective on the stock market's fixation on accounting numbers
M. Nelson, W. Tayler (2007)
Information Pursuit in Financial Statement Analysis: Effects of Choice, Effort, and ReconciliationThe Accounting Review, 82
IASB
Credit risk in liability measurement
Lisa Gaynor, Linda Mcdaniel, T. Yohn (2009)
Accounting for Liabilities at Fair Value: The Advantage of Relational Versus Informational Disclosures in Interpreting Credit Risk Changes
Marlene Plumlee (2003)
The Effect of Information Complexity on Analysts' Use of that InformationAccounting review: A quarterly journal of the American Accounting Association, 78
D. Hirshleifer, S. Teoh (2003)
Limited Attention, Information Disclosure, and Financial ReportingJournal of Accounting & Economics (JAE) Conference Series
F. Hodge, S. Jollineau, Laureen Maines (2004)
Does Search-Facilitating Technology Improve the Transparency of Financial Reporting?Financial Accounting
D. Hirst, Kevin Jackson, Lisa Koonce (2001)
Improving Financial Reports by Revealing the Accuracy of Prior EstimatesBanking & Financial Institutions
James Frederickson, J. Miller (2004)
The Effects of Pro Forma Earnings Disclosures on Analysts' and Nonprofessional Investors' Equity Valuation JudgmentsThe Accounting Review, 79
European Central Bank
Fair value accounting in the banking sector
D. Hirst, Kevin Jackson, Lisa Koonce, K. Petroni (2003)
Improving Financial Reports by Revealing the Accuracy of Prior Estimates Discussion of "Improving Financial Reports by Revealing the Accuracy of Prior Estimates"Contemporary Accounting Research, 20
Julie Cotter, I. Zimmer (2003)
Disclosure versus recognition: The case of asset revaluationsAsia-Pacific Journal of Accounting & Economics, 10
D. Bem (1972)
Self-Perception TheoryAdvances in Experimental Social Psychology, 6
F. Hodge, J.J. Kennedy, L.A. Maines
Does search‐facilitating technology improve transparency?
S. Taylor, S. Fiske
Salience, attention, and top of the head phenomena
Purpose – The International Accounting Standards Board and the Financial Accounting Standards Board allow fair value measurement of liabilities. Previous findings from the literature on recognition versus disclosure indicate that recognition of fair value information better serves investors' needs, because it is more likely to facilitate the incorporation of the information into their judgment. In cases of credit risk changes for own liabilities, however, many authors doubt that fair value measurement is beneficial due to its potential counter‐intuitiveness. The purpose of this paper is to gain insight into non‐professional investors' processing of fair value information for liabilities. Design/methodology/approach – A between‐subjects laboratory experiment was employed. Subjects received financial information on three different companies. The authors manipulated the accounting treatment of liabilities between the three groups. Subjects ranked three companies according to their economic performance. The authors then compared these rankings to the companies' actual performance. Findings – The results of the experiment indicate that non‐professional investors are less likely to acquire the information of credit risk changes when liabilities are not measured at fair value. Additionally, evidence was found that fair value measurement is to some extent counter‐intuitive for non‐professional investors. Research limitations/implications – A main limitation is that our experiment concentrates on liabilities and abstracts from interactions of both sides of the balance sheet. Originality/value – This is the first study to analyze in detail non‐professional investors' information processing of liabilities measured at fair value.
Review of Accounting and Finance – Emerald Publishing
Published: Nov 1, 2011
Keywords: Investors; Financial information; Fair value; Liabilities; Decision making; Fair value accounting; Creditworthiness
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.