Fair Value Accounting Dynamics under Macroeconomic Shocks: Evidence from Asian Developed Countries Using Nonparametric Causality-in Quantiles and Wavelet Coherence

Key Points

• This research aims to analyze how fair value accounting is influenced by macroeconomic shocks in Asian developed countries.
• Utilized nonparametric causality-in-quantiles and wavelet coherence analyses.
• Analyzed data from Japan, South Korea, Singapore, and Hong Kong from 2005 to 2023.
• Examined variables such as oil price shocks, gold returns, and banking fair value measures.
• Established causal relationships between macroeconomic variables and fair value accounting metrics.
• Identified specific impacts of oil price shocks and economic policy uncertainty on financial reporting.
• Demonstrated variability in responses across different countries and macroeconomic conditions.