An empirical analysis of the economic implications of fair value accounting for investment securities

• 成果类型: Article
• 署名作者: Beatty, A; Chamberlain, S; Magliolo, J
• 署名单位: Southern Methodist University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Santa Clara University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(96)00429-6
• 发表日期: 1996
• 关键词: earnings; IMPACT

摘要

This paper analyzes security returns of bank holding companies and insurance companies during periods surrounding the adoption of SFAS 115. We find bank share prices were negatively affected by the examined events, but find little share price reaction for insurance companies. Our evidence suggests banks were adversely affected by the standard because of problems with the standard's marker value accounting approach. Cross-sectional analysis of event period returns shows that banks that more frequently traded their investments, with longer maturing investments, and that are more fully hedged against interest rate changes, were the most negatively impacted by the standard.