During the 2007–2009 financial crisis, many parties criticized aspects of accounting requirements for banks as undermining financial stability. These criticisms generally reflect the view that these requirements primarily affect stability through their effects on banks' regulatory capital...

We investigate whether the market prices the change in net trading assets as an operating or non-operating activity or some mixture of the two, and whether this market pricing is consistent with the (fundamental) association of the change in net trading assets with future cash flows from...

Prior research has found that loan loss provisions are positively associated with bank stock returns and future cash flows, conditional on less discretionary information about loan default. We find that these positive valuation implications obtain only for loan loss provisions for low regulatory...

We examine how a change in statutory accounting rules that reduces U.S. life insurers’ regulatory capital leads them to manage their capital, as well as real effects of this management in the insurance product market. Effective at the end of 2009, Actuarial Guideline 43 (AG 43) increases...