The crisis of fair-value accounting: Making sense of the recent debate

By Christian Laux, Christian Leuz. 2009

844 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/669542700e54bc2d962113bea2fb41b7ab850211

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Xi Li
2. Emmanuel T. De George
3. Haresh Sapra
4. Daniel Zéghal
5. Dianne Massoudi
6. Y. M. Fourati
7. David Cairns
8. Philip Brown

In Economics and Econometrics

1. Philip Brown
2. Emmanuel T. De George
3. Chandra Kanodia
4. Xi Li
5. Haresh Sapra
6. J. Bischof
7. L. Shivakumar
8. Daniel Zéghal

Citations in the corpus

• Accounting for financial stability: Bank disclosure and loss recognition in the financial crisis (2021, neutral): “Filtering certain losses could also delay banks’ corrective actions and provide incentives to hold on to assets that deteriorated in value (e.g., Laux and Leuz, 2009).7 Prior studies investigate the effect of prudential filters for FV losses on banks’ portfolio allocations and earnings volatility…”
• Is Historical Cost Accounting a Panacea? Market Stress, Incentive Distortions, and Gains Trading (2015, neutral): “HCA may also engender inefficiencies as financial institutions, under HCA, have an incentive to engage in selective asset sales aimed at the early realization of earnings (see Laux and Leuz (2009) for a discussion of the gains trading incentive under HCA).”
• A review of the IFRS adoption literature (2016, background): “This approach is justified because although IFRS require fair value accounting for a variety of asset classes, they tend to be most relevant for the recognition of financial assets and liabilities (Laux and Leuz, 2009) and banks tend to recognize significant amounts of financial assets and liabiliti”
• Evidence-based policymaking: promise, challenges and opportunities for accounting and financial markets research** (2018, neutral): “…that banks reported at fair value, what fraction of these assets were actually marked to market as opposed to a matrix or a model, and information on when banks started taking write-downs on their financial assets, relative to when the crisis unfolded (see discussions by Laux and Leuz 2009, 2010).”
• Accounting, Organizing, and Economizing: Connecting Accounting Research and Organization Theory (2013, neutral): “However, this was highly controversial (Laux & Leuz, 2009; Plantin, Sapra, & Shin, 2004).”
• The Effect of Mandatory Adoption of IFRS on Earnings Quality: Evidence from the European Union (2012, background): “16 See Laux and Leuz (2009) for a discussion of the recent financial crisis.”