China Accounting and Finance Review

, 18:12

First online:

Open Access This content is freely available online to anyone, anywhere at any time.

The Impact of Fair Value Accounting on Corporate Disclosure

  • Xinzi LiAffiliated withSchool of Accountancy, Central University of Finance and Economics
  • , Ting LuoAffiliated withSchool of Economics and Management, Tsinghua University Email author 


This paper examines the impact of fair value accounting on corporate disclosure after the implementation of the new accounting standards in China. We find that the frequency of management forecasts increases significantly for firms affected by fair value accounting. Further analysis reveals that this relation is more pronounced for forecasts issued after the fiscal period end and for forecasts conveying bad news. Our study provides new evidence about the economic consequences of the new standards. In addition, we explore the determinants of management forecasts from a standard-setting perspective, which contributes to the line of research on corporate disclosure.


Fair Value Accounting Information Disclosure Management Forecasts