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Accounting Standards, Regulations and Herd Behavior


  • Anghel Flavia Gabriela
  • Avrigeanu Alina Florentina
  • Glavan Bogdan Nicolae

    () (Universitatea Româno-Americana)


It is argued that the current accounting and risk assessment methods have played an important role in developing financial panic. Mark-tomarket models and fair value accounting seem to stand as the basis a market failure and should be replaced by more conservative accounting methods. In this paper we reject this idea, emphasizing the weaknesses of historical cost accounting and mark-to-model financial model. We put the debate in a larger perspective, pointing to the relation between accounting methods and entrepreneurial economic calculation. Also, we criticize the association between fair-value accounting and the current crisis, arguind that the latter is more likely the result of risk regulation that determined herd behavior.

Suggested Citation

  • Anghel Flavia Gabriela & Avrigeanu Alina Florentina & Glavan Bogdan Nicolae, 2010. "Accounting Standards, Regulations and Herd Behavior," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 1406-1411, May.
  • Handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:1406-1411

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    financial assets; business cycle; entrepreneurial economic calculation; herd behavior;

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


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