Defense Date

2014

Document Type

Dissertation

Degree Name

Doctor of Philosophy

Department

Business

First Advisor

Myung Park

Abstract

Prior research has shown that even the most subjective fair value estimates are value-relevant (Song et al. 2010, Kolev 2009, Goh et al. 2009) and that managers appear to use Level 3 valuations opportunistically (Valencia 2011, Fiechter and Meyer 2009). However, the association between “traditional” measures of aggressiveness in financial reporting and biased estimates of fair value has not been previously studied. I test whether aggressiveness, as measured by discretionary accruals, real activities manipulation, and meeting-or-beating analysts’ consensus estimates, is positively associated with realized and unrealized gains and losses on Level instruments. Overall, I find limited support that aggressive firms opportunistically use fair value measurements to overstate earnings. Inferences remain the same whether only the unrealized component of gains/losses are examined and whether firms are classified into “suspect” or “non-suspect” groups.

Rights

© The Author

Is Part Of

VCU University Archives

Is Part Of

VCU Theses and Dissertations

Date of Submission

8-18-2014

Included in

Business Commons

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