In this paper we present the fundamental approaches of financial economics to valuation. Three methods are demonstrated by which financial economists account for risk. We illustrate how these methods relate to one another and how they can be applied in the valuation of risky corporate bonds, guaranteed investment contracts (GICs) with and without interest rate contingencies, and whole life insu...

background one common challenge to social systems is achieving equity in financial contributions and preventing financial loss. because of the large and unpredictable nature of some costs, achieving this goal in the health system presents important and unique problems. the present study investigated the household financial contributions (hfcs) to the health system.   methods the study investiga...

We develop a theory of how agency conflicts between the shareholders and debt holders of a financial institution, accounting measurement rules, and prudential capital regulation interact to affect the institution’s capital structure and project choices. We show that, relative to a benchmark historical cost regime in which assets and liabilities on the institution’s balance sheet are measured at...

Finance theory suggests that information risk―that is, the uncertainty regarding valuation parameters for an underlying asset―is reflected in firms’ equity betas and the information asymmetry component of bid-ask spreads. We empirically examine these predictions for a sample of large U.S. banks, exploiting recent mandatory disclosures of financial instruments designated as fair value level 1, 2...

The explosion of financial crisis induced an argument about the accounting of fair value in the whole world, and the influence of the fair value measurement on the bank profit begun to be noticed by the public. In the background that Chinese commercial banks successively implemented the shareholding reform and begun to come into the market, it is practical and meaningful to analyze the influenc...

The subject of the paper is role fair value, as one accounting measurement attributes (measurement basis) assets and liabilities in statement financial position, conditions crisis, based on experience with global crisis which appeared 2008 US sector, later spilled over into real sector that country, well as, to a greater or lesser extent, rest world. has stimulated discussions scientific profes...

AbstractBiological assets are growing owned by a company and can provide economic benefits in the future. In Indonesia, biological recorded recognized based on PSAK 69. The 69 requires use of fair value method to measure that were previously measured using historical cost method. This study aims determine impact implementation financial performance. also investigates effect environmental report...