Financial Statement Insurance
نویسنده
چکیده
The largest corporate bankruptcy filed in the U.S. that of Enron Corp in 2001 was preceded by a string of disclosures about the restatements of their financial statements.The presence of such errors that required restatements of the financial statements brings into focus the salience of two inter-related needs. The first is the need to assess the quality of the information contained in the financial statements as a basis for making projections about the future. The second is the need to actually make projections about future cash flows and aggregate these into a value for the security. Even if one assumes that accurate models are available for projecting cash flows, uncertainty about the quality of the financial statements can lead to pricing distortions and inefficient market allocations.
منابع مشابه
A proposed corporate governance reform: Financial statements insurance
The inherent conflicts of interest in the auditor–client relationship and the unobservability of financial statement quality are likely culprits in the recent corporate scandals such as Enron and WorldCom. The solution proposed here is a financial statement insurance (FSI) mechanism. Instead of appointing and paying auditors, companies would purchase financial statement insurance that provides ...
متن کاملThe Effect of Internationalization on Home Market Performance: Evidence from German Insurance Groups
In this paper we investigate the effect of internationalization on home market performance using survey data and financial statement data of German insurance groups with property-liability business for the years 1999 through 2009. We develop a resource-based perspective and argue that strategic transformation is a major factor driving insurance groups’ internationalization, whereby successful i...
متن کاملPrediction of outstanding insurance claims ∗ Claudia
Building reserves for outstanding liabilities is an important issue in the financial statement of any insurance company. In this paper we present a new model for delay in claim settlement and to predict IBNR (incurred but not reported) claims. The modelling is based on a data set of a portfolio of car liability data, which describes the claim settlement of a car insurance portfolio. The data co...
متن کاملCorrection: Effects of Type of Health Insurance Coverage on Colorectal Cancer Survival in Puerto Rico: A Population-Based Study
There is an error in the Financial Disclosure (FD) statement for this article. Please refer to the correct FD statement below: This work is supported by federal funds from the National Program of Cancer Registries (NPCR Award Number 5U58-DP 003863-02; URL: http://www.cdc.gov/cancer/npcr/) to the Puerto Rico Central Cancer Registry (PRCCR), by the University of Puerto Rico Comprehensive Cancer C...
متن کاملStatement of Investment Deposits Performance: Improvement of Accountability in the Business Model of Usury-free Banking in Iran, Consistant with IFRS
Statement of investment deposits performance is a separate and supplementary financial statement that is designed with two objectives: 1. Improvement in the level of disclosure and accountability of the banks to the owners of investment deposits as the main providers of the banks’ resources, and 2. Implementation of the IFRS standards on banking business in Iran. In this paper, the principles g...
متن کامل