Fair Value Accounting Practices and Efficiency of Banks: A Theoretical Perspective
نویسندگان
چکیده
منابع مشابه
Banks’ Voluntary Adoption of Fair Value Accounting and Interbank Competition∗
We study the role of interbank competition in shaping banks’ incentives to use fair-value accounting voluntarily and the impact of fair-value discretion on banks’ competing strategies. We find that allowing banks discretion to use fair-value accounting may give rise to multiple equilibria in situations where the equilibrium would be otherwise unique. When the profitability in the banking indust...
متن کاملFair Value Accounting for Liabilities and Own Credit Risk
Changes in credit risk may arise when either the value or the risk of corporate assets changes. Changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized into potentially countervailing direct and indirect effects. The indirect effect of risk on equity value is a function of factors that affect the debt value of including leverage,...
متن کاملfair value accounting for liabilities and own credit risk
changes in credit risk may arise when either the value or the risk of corporate assets changes. changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized into potentially countervailing direct and indirect effects. the indirect effect of risk on equity value is a function of factors that affect the debt value of including leverage,...
متن کاملFair-Value Accounting for Federal Credit Programs
The federal government supports some private activities—such as home ownership, postsecondary education, and certain commercial ventures—through credit assistance offered to individuals and businesses. Some of that assistance is in the form of direct federal loans, and some is through federal guarantees of loans made by private financial institutions. At the end of fiscal year 2011, about $2.7 ...
متن کاملPerspective on Fair Value Measurement
Although fair value is not a new measurement attribute, the interest of discussing fair value has been aroused by the release of new accounting standards. This article decodes fair value measurement again from four aspects respectively. Fair value measurement attribute is for asset measurement in the end, a kind of initiative measurement from master-slave relationship. As a matter of fact, fair...
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ژورنال
عنوان ژورنال: Accounting and Finance Research
سال: 2018
ISSN: 1927-5994,1927-5986
DOI: 10.5430/afr.v7n4p66