Welcome to the ARIA 2021 Annual Meeting Agenda App. You are seeing this in simple view. Click on any session to see Presenters, Discussants and a Session Description. Click on Presenters to find a single presenter and their sessions. If you find an error, please email gphillips@aria.org. Registrants have been added and will continue to be updated until 7/29/21 when registration closes. Zoom links will be shared directly with all participants two days prior to the conference. Please make notifications@sched.com a "safe sender" in your email system. We will be sending messages throughout the conference through this medium.
Dan Yang, University of Georgia; James Carson, University of Georgia; Evan Eastman, Florida State University; John Campbell, University of Georgia
In 2016, the Financial Accounting Standard Board (FASB) issued an accounting standard update - FASB No. 2016-01 - that requires equity investments to be measured at fair value with changes in fair value recognized in net income. Prior to the passage of this update, firms reported unrealized gains and losses as other comprehensive income (OCI) for income statement purposes. The earnings reclassification of equity investments will have the most impact on public institutions that hold significant equities measured at fair value, so this study focuses on U.S. public insurers and banks. Specifically, we study how this new earnings reclassification impacts firm’s information asymmetry measured by bid-ask spreads around earnings announcement. Our results show that the earnings reclassification required by FASB No. 2016-01 decreases the bid-ask spreads around earnings announcement for firms with equity investments measured at fair value.
