At the peak of the financial crisis in October 2008, the IASB amended IAS 39 to grant companies the option of abandoning fair value recognition for selected financial assets. Using a comprehensive global sample of publicly listed IFRS banks, we find that banks use the reclassification option to...

Financial crisis of year 2008 suggests that the existing asset pricing models, which are derived under the assumption of investor's rationality, are not enough to explain the stock performance during market stress and liquidity crunch periods. In this paper, we created four measures of corporate...

In an earlier paper titled ‘Mark-to-Market Accounting as a Magnifier of Financial Crises', we advocated that fair value or mark-to-market accounting magnifies financial crises by creating a feedback loop between figures from financial reports and financial markets. We proposed a simple method...

A topic of recent interest in accounting research has been the investigation of the role of fair value accounting (FVA) in the global financial crisis. This research focused on finding a link during the crisis time-period and often states that “accounting is only a messenger”. The model...