Internet Appendix for: Did SFAS 166/167 Decrease the Information Asymmetry of Securitizing Banks?
Financial Review, 2019;1–25
22 Pages Posted: 26 Nov 2019 Last revised: 13 Feb 2020
Date Written: November 13, 2019
Beginning in 2010, mandated Financial Accounting Standards No. 166 and 167 (SFAS 166/167) changed the consolidation rules of securitization entities and required more information about their securitization activities. I find that securitizing banks experienced a decrease in information asymmetry from the pre- to the post-SFAS 166/167 periods, and that more visible securitizing banks are less sensitive to SFAS 166/167. These inferences are robust to a number of sensitivity analyses. This study is one of the first to provide evidence of the effects of SFAS 166/167 on the information asymmetry of securitizing banks.
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