Mark-to-Market Accounting: Does it Provide Information to Investors

Research output: Contribution to journalArticlepeer-review

Abstract

According to the financial press the recent financial problems of many firms is at least partially due to mark-to-market accounting. In this paper I ask the question - if mark-to-market accounting is the reason for the financial distress of firms, why does the FASB require mark-to-market? I review accounting standards that require mark-to-market accounting and empirically test the relation between firm value and mark to market adjustments to provide evidence as to whether mark-to-market adjustments are useful to investors and creditors. The results provide evidence that mark-to-market adjustments impact firm value.

Original languageAmerican English
JournalThe Journal of Applied Business Research
Volume25
StatePublished - Nov 1 2009

Disciplines

  • Accounting
  • Business

Keywords

  • Firm value
  • Mark-to-market
  • Net charge-offs

Fingerprint

Dive into the research topics of 'Mark-to-Market Accounting: Does it Provide Information to Investors'. Together they form a unique fingerprint.

Cite this