Fair Value Hierarchy Disclosure and Information Asymmetry

doi:10.15936/j.cnki.10083758.2015.03.007

Abstract

Abstract: Using a sample of the A share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2012， this paper tested the impact of fair value hierarchy disclosures on stock investors information asymmetry. It was found that the net assets measured by fair value reduce the information asymmetry among stock investors. Level 1 and Level 2 net assets are more reliable and significantly reduce the information asymmetry among stock investors， whereas Level 3 net assets are less reliable and significantly increase the information asymmetry among stock investors. On the whole， considering the comparatively small amounts of Level 3 net assets and liabilities， the fair value of listed companies is helpful to reduce the information asymmetry among stock investors.

Key words: listed company, fair value hierarchy, information asymmetry

CLC Number:

F230

MAO Zhi-hong， RAN Dan， LIU Bao-ying. Fair Value Hierarchy Disclosure and Information Asymmetry[J]. Journal of Northeastern University(Social Science), 2015, 17(3): 260-267.

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