Fair Value Accounting in Distressed Markets

33 Pages Posted: 8 Jan 2018

See all articles by Amir Amel-Zadeh

Amir Amel-Zadeh

University of Oxford - Said Business School

Geoff Meeks

University of Cambridge - Judge Business School

Date Written: April 2017

Abstract

In this paper, we review the existing evidence on the role of fair value accounting in transforming what started as a liquidity shock at the beginning of the Financial Crisis of 2007-08 into a solvency crisis and ultimately systemic bank failures. The paper discusses the academic evidence on the conflict in the interaction of accounting measurements - intended to increase transparency - and bank solvency regulation, whose aim is to ensure financial stability. It focuses on fair value accounting in distressed markets with the purpose to stimulate further research in this area.

Keywords: Fair Value Accounting, Market Distress, Liquidity Crisis, Financial Crises, Bank Regulation

JEL Classification: G01, G21, G28, M41, M48

Suggested Citation

Amel-Zadeh, Amir and Meeks, Geoff, Fair Value Accounting in Distressed Markets (April 2017). Available at SSRN: https://ssrn.com/abstract=3096514 or http://dx.doi.org/10.2139/ssrn.3096514

Amir Amel-Zadeh (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Geoff Meeks

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 (0) 1223 764226 (Phone)
+44 (0) 1223 339701 (Fax)

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