Mark-to-market accounting and liquidity pricing
成果类型：
Article
署名作者：
Allen, Franklin; Carletti, Elena
署名单位：
University of Pennsylvania; Goethe University Frankfurt
刊物名称：
JOURNAL OF ACCOUNTING & ECONOMICS
ISSN/ISSBN：
0165-4101
DOI：
10.1016/j.jacceco.2007.02.005
发表日期：
2008
关键词：
摘要：
When liquidity plays an important role as in financial crises, asset prices may reflect the amount of liquidity available rather than the asset's future earning power. Using market prices to assess financial institutions' solvency in such circumstances is not desirable. We show that a shock in the insurance sector can cause the current market value of banks' assets to fall below their liabilities so they are insolvent. In contrast, if values based on historic cost are used, banks can continue and meet all their future liabilities. We discuss the implications for the debate on mark-to-market versus historic cost accounting. (c) 2007 Elsevier B.V. All rights reserved.
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