In this paper, I provide two general insights that are useful in evaluating the economic trade-offs of alternative accounting measurement rules. First, when there are multiple imperfections in the world, restricting a strict subset of it need not always improve welfare. Second, a firm is not a...

A primary argument against fair values is the lack of verifiability, where verifiability is defined as consensus in measurement by independent parties. Changes in data transparency, pricing sources, and oversight mechanisms potentially affect consensus in the reporting of investment fair values...

Insurance pricing is subject to stricter regulation in some states than others. This cross-sectional variation, coupled with the occurrence of staggered deregulation in several states, enables a powerful test of the political cost hypothesis that managers manipulate accruals to mitigate adverse...

This paper investigates how accounting rule reform affects the usage of conditional conservatism in the property-liability (P&L) insurance industry. More specifically, whether the accounting rule changes that strengthen the internal control over financial reporting and improve the financial...

Several recent studies have empirically examined the claim that fair value accounting (FVA) contributed to the financial crisis of 2008. Most of this research relies on stock price and/or financial statement data from commercial banks to investigate the role played by FVA in this financial...

Spanish Abstract: El 26 de abril de 2012 la Junta Bancaria de Ecuador aprobó la Resolución JB-2012-2149 la cual regulaba sobre los procedimientos de registro contable inicial y valoración posterior de los instrumentos financieros de renta fija y renta variable, que debían seguir las empresas...

Among the many changes and revolutions that the (re)insurance industry will face in the next few years, introduction of the new standard IFRS 4 phase 2 is one that will certainly impact the way in which the (re)insurance business is managed. Not only will this new standard impact insurance...

English Abstract: This paper is the first to investigate the characteristics and determinants of risk reporting volume and quality by German insurance companies in group management reports under the German Accounting Standard No. 20 (GAS 20) “Group Management Report”. We find heterogeneous...

Die globale Finanzkrise 2007 fand ihren Ausdruck zunaechst in der Bankenkrise. Dadurch wurde die Ausbreitung dieser auf andere Branchen unumgaenglich. Diese Krise machte unmissverstaendlich klar, dass der Ausschluss von Moral und Ethik im traditionellen Verstaendnis von Finanzen nicht mehr zu...