We use an integrated approach to analyze the reasons behind the discount on the balance-sheet fair value of illiquid financial instruments held by European banks and classified into the Level 3 Fair Value hierarchy under IFRS 7. We believe that the potential sources of misalignment are 1) the...

Innovation is widely considered one of the most important drivers for firm growth in the contemporary economy. However, the 'elusive' as well as heterogeneous nature of innovation has generated a lively debate among scholars with regards to the best metrics to capture its features and effects....

Innovation is widely considered one of the most important drivers for firm growth in the contemporary economy. However, the 'elusive' as well as heterogeneous nature of innovation has generated a lively debate among scholars with regards to the best metrics to capture its features and effects....

In this paper, using hand-collected accounting data on 154 European banks for a period ranging from 2010 to 2018, we investigate the impact of banks’ ESG scores on the value-relevance of fair value hierarchy in financial instruments. Our findings are multi-faceted. On the one hand, banks that...