Initial margin is required by central counterparties (CCPs) and under regulatory Bilateral Initial Margin (BCBS-317). This initial margin is contractually defined in Clearing Arrangements (CA) or Collateral Support Deeds (CSD) respectively. We investigate whether the cost of this initial margin...

We investigate the effect of standard setters in standard setting: We examine how certain professional and political characteristics of FASB members and SEC commissioners predict the accounting “reliability” and “relevance” of proposed standards. Notably, we find FASB members with...

This paper hypothesizes that a country's political system bears on the decision to adopt International Financial Reporting Standards (IFRS). To the extent that accounting standards influence economic behavior, a sweeping change in accounting standards is likely to upset the balance of power...

Today's most pressing constitutional question is posed by a global economic system whose expansive tendencies seem no longer controllable. The current financial/debt crisis has triggered diverse reactions in the political arena ranging from the reformist ordo-liberal approach followed by France...

Auditing (accounting) researchers have published over 24,000 (75,000) academic articles (Google Scholar September 2016) using a variety of research methods since 1970. Yet accounting and auditing standard setters and regulators have frequently cited their inability to engage with and utilize...

If supranational public and private actors establish rules and standards, then it is of great concern whether those rules and standards have democratic legitimacy. The literature offers different measures to overcome these legitimacy concerns, such as the active participation by relevant...

We test for changes in investment efficiency around a shock to financial reporting quality—the adoption of SFAS No. 123R, which requires that employee stock option (ESO) costs be recognized rather than disclosed at fair value. We predict and find a reduction in underinvestment for firms...

IFRS 9 was introduced by the IASB in 2014 and became mandatory for fiscal years starting in 2018. It bears fundamental changes in the accounting requirements for financial instruments, especially in the areas of recognition, categorisation and measurement, impairment and loan loss provision. As...