Mark-to-market accounting and liquidity pricing

被引：163

作者：

Allen, Franklin ^{[1
]}

Carletti, Elena ^{[2
]}

机构：

[1] Univ Penn, Wharton Sch, Philadelphia, PA 19104 USA

[2] Goethe Univ Frankfurt, Ctr Financial Studies, D-6000 Frankfurt, Germany

来源：

JOURNAL OF ACCOUNTING & ECONOMICS | 2008年 / 45卷 / 2-3期

关键词：

mark-to-market; historical cost; incomplete markets;

D O I：

10.1016/j.jacceco.2007.02.005

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

When liquidity plays an important role as in financial crises, asset prices may reflect the amount of liquidity available rather than the asset's future earning power. Using market prices to assess financial institutions' solvency in such circumstances is not desirable. We show that a shock in the insurance sector can cause the current market value of banks' assets to fall below their liabilities so they are insolvent. In contrast, if values based on historic cost are used, banks can continue and meet all their future liabilities. We discuss the implications for the debate on mark-to-market versus historic cost accounting. (c) 2007 Elsevier B.V. All rights reserved.

引用

页码：358 / 378

页数：21

共 15 条

[1] From cash-in-the-market pricing to financial fragility [J].