THE RELEVANCE AND RELIANCE OF FAIR VALUE ACCOUNTING INFORMATION- EVIDENCE FROM CAPITAL AND DEBT MARKET INSTITUTIONS IN JORDAN

The study's primary goal was to evaluate the fair
value accounting method's applicability and usefulness using
capital market data. The study also focused on identifying
flaws in the application of how they use the fair value
accounting approach to affect its applicability and usefulness
as a tool for decision-making. A fixed effect regression model
was estimated using secondary data from composites 4 debt
market firms and 5 capital market firm’s enterprises over the
years 2009 to 2018. Using the redundant fixed effects test as a
basis, the fixed effect regression model was mentioned as
being deemed suitable for the goals of this investigation. The
established results demonstrated a positive correlation
between the capital and debt institutions' stock prices and level
1 fair value assets, company size, and net income. Fair value
liabilities and Level 2 fair value assets were shown to be
adversely correlated related to the capital and loan institutions'
stock prices. To keep a positive investor attitude toward the
company, solid ethical principles, combined with appropriate
disclosure and fairness in the financial statement compilation,
are required. This is so that a company's stock will continue to
be in high demand, which depends on sustaining positive
investor relationships and attitudes.