Arbeitspapier
Did fair-value accounting contribute to the financial crisis?
The recent financial crisis has led to a major debate about fair-value accounting. Many critics have argued that fair-value accounting, often also called mark-to-market accounting, has significantly contributed to the financial crisis or, at least, exacerbated its severity. In this paper, we assess these arguments and examine the role of fair-value accounting in the financial crisis using descriptive data and empirical evidence. Based on our analysis, it is unlikely that fair-value accounting added to the severity of the current financial crisis in a major way. While there may have been downward spirals or asset-fire sales in certain markets, we find little evidence that these effects are the result of fair-value accounting. We also find little support for claims that fair-value accounting leads to excessive write-downs of banks' assets. If anything, empirical evidence to date points in the opposite direction, that is, towards overvaluation of bank assets.
- Sprache
-
Englisch
- Erschienen in
-
Series: CFS Working Paper ; No. 2009/22
- Klassifikation
-
Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
International Financial Markets
Corporate Finance and Governance: General
Business and Securities Law
Accounting
Auditing
- Thema
-
Mark-to-Market Accounting
Financial Institutions
Liquidity
Financial Crisis, Banks
Financial Regulation
Procyclicality
Contagion
Finanzmarktkrise
Bilanzielle Bewertung
Fair-Value-Bewertung
Bankbilanz
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Laux, Christian
Leuz, Christian
- Ereignis
-
Veröffentlichung
- (wer)
-
Goethe University Frankfurt, Center for Financial Studies (CFS)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2009
- Handle
- URN
-
urn:nbn:de:hebis:30-72719
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Laux, Christian
- Leuz, Christian
- Goethe University Frankfurt, Center for Financial Studies (CFS)
Entstanden
- 2009
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