Using an international sample of 222 banks from 41 countries, this study examines whether the fair value option (FVO) affects earnings volatility. Prior empirical studies associate higher levels of earnings volatility with fair value accounting (Barth et al. 1995; Hodder et al. 2006). In contrast, I...

For many years the regulatory capital of commercial banks in the United States has been based on the book value of assets and liabilities. That has changed with the implementation of Fair Value Measurements in FAS 157. Now banks and regulators must view capital from a Fair Value perspective....

The purpose of this study is to examine the relevance of fair value accounting measurement for commercial banks. Our sample is composed of Chinese commercial banks from period 2006 to the end of 2008.the empirical result show that First, the positive relationship between stock market value and...