Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086572 | Journal of Accounting and Economics | 2016 | 14 Pages |
Abstract
When the Federal Reserve, following Basel III, proposed removing the accumulated other comprehensive income (AOCI) filter that shields regulatory capital from unrealized gains and losses on available-for-sale (AFS) debt securities, it triggered fierce opposition. The topic is at the heart of the debate about the role of fair value accounting for financial stability. Chircop and Novotny-Farkas (2016) investigate banks' stock price reaction and investment behavior around news events up to the announcement of the final decision. I focus on the question of whether their evidence is sufficiently strong to convince either side in the debate.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Christian Laux,