Premium Essay

Fv Measurement and Global Crisis

In: Business and Management

Submitted By prima08
Words 4953
Pages 20
Contents
1.0 Introduction and Motivation 1
2.0 Literature Review 2
3.0 Theoretical Framework 4 3.1 Stakeholder Theory 4 3.2 Positive Accounting Theory 5 3.2 Efficient Market Hypothesis 7
4.0 Discussion and findings 8
5.0 Conclusion 10 Reference 12

Relationship between Fair Value Measurements with Investor Confidence during Global Financial Crisis

Abstract
As investor, the needs of information which can reflect accurate financial information matching with current market condition is essential. Using fair value methods and measurement for asset valuation is one of the best accounting methods which can reflect current market condition accurately. But FVA cannot be separated from the critique especially when global financial crisis hit the world. Critique said FVA decrease investor confidence to invest in market which made more illiquid market during the time. In this paper, our aim is to find the relationship between fair value accounting, method, and measurement with investor confidence. We have been searched the data from previous journal that has been worked before to prove our assumption which are Fair value has decrease investor confidence and investor rely on information which is provided only by fair value measurement.

1.0 Introduction and Motivation
There have been many studies on the role of FVA to global financial crisis (GFC) which may result in different opinion and open debate in the future. Most of the past research papers consist of the focus of this paper which is to find in depth more on how the fair value (FV) measurement may or may not affect recent GFC and how it affecting investor confidence. These past studies will help to construct this paper immensely and hopefully provide the reader better understanding in term of relation between FV measurement and investor confidence.
As an investor, the main considerations is the

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