Graduation Year

Fall 2011

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

George Batta

Reader 2

Gregory Hess

Rights Information

© 2011 Jason M. Rehhaut


During the financial crisis, many assets became illiquid and ceased trading on the open market, thus classifying them as level three assets. This study attempts to determine whether fair value asset disclosures, especially level three assets, were viewed by the market as valued correctly, given the amount of subjectivity involved. This paper will discuss prior literature on the topics of fair value accounting, various earnings quality measures, and corporate governance impact on fair value disclosures. Using models similar to prior papers, many of the coefficients of interest proved insignificant. However, the models improved when examining only the least credible firms.


  • Robert Day School Prize for Best Senior Thesis in Economics (Accounting) and Finance