Historical cost in explaining investor reactions

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Question: FVA has the following advantages: Fair value measurement provides accurate and adequate financial information according to the market prices, ensuring the comparability among companies. Thereby, users of information can evaluate the actual values and performance of companies. There has been much research on the applications of FVA. Such research focused on examining the impact of FVA on stock prices, efficiency, and incomes of enterprises and investors. Some studies tried to answer the question of whether fair value is better than historical cost in explaining investor reactions?

Reference no: EM133542093

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