publication . Preprint . 2008

Consequences of Voluntary and Mandatory Fair Value Accounting: Evidence Surrounding IFRS Adoption in the EU Real Estate Industry

Karl A. Muller; Edward J. Riedl; Thorsten Sellhorn;
Open Access
  • Published: 01 Aug 2008
Abstract
We examine the causes and consequences of European real estate firms' decisions to provide investment property fair values prior to the required disclosure of this information under International Financial Reporting Standards (IFRS). We find evidence that investor demand for fair value information-reflected in more dispersed ownership-and a firm's commitment to transparency increase the likelihood of providing fair values prior to their required provision under International Accounting Standard 40 - Investment Property. We also find that firms not providing these fair values face higher information asymmetry. However, we fail to find that the relatively higher i...
Subjects
free text keywords: Fair value, disclosure, IFRS, information asymmetry
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