Abstract
The main aim of this research paper is to examine the impact of fair value measurements on earnings predictability. This study focuses on analyzing the relationship between fair value measurements and predictability as a measure of earnings quality. The primary data needed to achieve the study objectives were collected through the annual reports of Jordanian commercial banks. Data from ten commercial banks representing the study sample were collected and analyzed using a time series method covering a period of eight years, from 2011 to 2018. The resolution data were analyzed using the statistical program SSPS. The study concluded that the unrealized gains or losses of fair value forecasted through comprehensive income have a high predictive power of earnings quality. The results also prove that the unrealized gains or losses of fair value forecasted through net income have a high predictive power of earnings quality in the Jordanian commercial banks. The regression and correlation coefficient analyses also refer to a strong magnitude between the two variables, the dependent variable (fair value accounting) and the independent variable (earnings predictability).