Fair Value Hierarchy in Financial Instruments Disclosure. Is There Transparency For Investors? Evidence from the Banking Industry

"\"Fair value measurement debate is still open although last 20 years have been spent in searching for solution by academician, practitioners and institution. After a long and continuous review of basic concepts for fair value measurements and different solutions adopted in mark to market measurement, in particular for financial instruments in annual reported of banks, this paper tries to investigate on level of transparency of newly introduced “hierarchy” in fair value measurement. . The paper presents results of an empirical investigation on a large sample of domestic and foreign listed banks who adopted fair value hierarchy in line with US GAAP 157 and IFRS 13 recommendations. Research questions can be summarized as follows: (i) does fair value hierarchy improve transparency in financial instruments evaluation in banks annual report? (ii) can fair value measurement be used as a tool for earnings management? Results are shown.\""