Fair value-related information in analysts’ decision processes: Evidence from the financial crisis

Jannis Bischof, Holger Daske, Christoph Sextroh

Research output: Contribution to journalArticleScientificpeer-review

25 Citations (Scopus)


We use a sample of conference calls and analyst research reports from international banks to examine how financial analysts request and communicate fair value-related information in their valuation process. We find that analysts devote considerable attention to fair value-related topics. Most of the conference call questions and references in research reports pertain to fair value reclassifications and fair value changes of liabilities resulting from banks’ own credit risk. The accounting impact of these one-time effects during the financial crisis and a lack of corresponding firm disclosures help to explain the prevalence of these two topics. The content of the questions and references suggests that analysts have different motives for their interest in fair value-related information. While some analysts adjust reported earnings for unrecognised fair value changes of reclassified assets, most of the observed analysts exclude banks’ own credit risk effects from reported earnings. Thus, the use of fair value-related information varies substantially across analysts and across instruments.
Original languageEnglish
Pages (from-to)363-400
JournalJournal of Business Finance & Accounting
Issue number3-4
Publication statusPublished - 10 Apr 2014
Externally publishedYes


  • fair value accounting
  • fair value reclassifications
  • own credit risk
  • bank disclosure
  • financial analysts
  • conference calls
  • analyst reports


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