Fair value accounting and analyst forecast accuracy

  title={Fair value accounting and analyst forecast accuracy},
  author={Douglas Ray Ayres and Xuerong Huang and Mark Myring},
This study examines the effect of fair value accounting on the behavior of analysts using a large, generalizable sample of U.S. firms. By employing a measure of firms' fair value intensity, we provide evidence showing that firms with higher fair value intensity have more accurate analyst earnings forecasts, a significant main effect elusive to Magnan, Menini, and Parbonetti (2015). Furthermore, by using disclosures required by Statement of Financial Accounting Standards (SFAS) No. 157, we find… CONTINUE READING