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

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Laux, Christian
  • Leuz, Christian
  • Goethe University Frankfurt, Center for Financial Studies (CFS)

Entstanden

  • 2009

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