Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
March 18, 2026The Accounting Review

Market Value Information for Non-subsidiary Investments.

View Full Paper
Ask AI
Bookmark
Share

Authors

BLB. Michl LloydUniversity of Wisconsin SystemJWJerry J. WeygandtUniversity of Iowa

Discussion

Loading...

Member takes

Implication

Article analyzes fair market value and cost method differences in nonsubsidiary investments, suggesting market information’s significance.

Key Points

  • The aim is to determine differences between fair market value and cost method for nonsubsidiary investments under 50 percent ownership.
  • Comparison of fair market value and cost approach for investments below 20 percent ownership.
  • Analysis of intercorporate holdings and market impacts on investment decisions.
  • Empirical investigation suggested for assessing blockage effects in sales.
  • Market value approach recommended for less than 20 percent owned companies.
  • Cost method arguments lack strong support, especially when empirical evidence is sought.
  • The relevance of market value information highlighted for business decisions.

Cite This Study

Lloyd et al. (1971) studied this question.

synapsesocial.com/papers/69ba42ae4e9516ffd37a3258https://doi.org/10.2308/tar-4503994
View Full Paper
Ask AI
Bookmark
Share

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Investment Decisions and the Equity Accounting Standard.1986 · 1 citations
  2. 2Real Effects of Subjectivity in Measuring Fair Values2026 · 1 citations
  3. 3Value Relevance of Fair Value Measurement on Investment Property: Malaysian Evidence2024
  4. 4Fundamental Issues Related to Using Fair Value Accounting for Financial Reporting.1995 · 1 citations
  5. 5How Does Fair Value Measurement Affect Corporate Financing Constraints? Evidence From China2025