Accounting Standards, Regulations and Herd Behavior
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.
Volume (Year): X (2010)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: http://www.univ-ovidius.ro/facultatea-de-stiinte-economice|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:1406-1411. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gheorghiu Gabriela)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.