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http://hdl.handle.net/10419/57368
  
Title:Disclosure, transparency, and market discipline PDF Logo
Authors:Freixas, Xavier
Laux, Christian
Issue Date:2011
Series/Report no.:CFS Working Paper 2011/11
Abstract:The aim of this paper is to examine what has been the role of information provision to the market throughout the crisis. We consider two main sources of information to the market, financial statements and information provided by credit rating agencies. We examine how these sources of information work and the effectiveness of their disclosure process during the crisis. Contrary to the commonly held view, fair value accounting did not have a major impact on the crisis development and severity. However, the structure and lack of accountability of credit rating agencies had a profound impact on their incentives, which may have jeopardized the accuracy of the whole rating process. We claim that the crisis experience has changed the way we think about information as well as market discipline and discuss policy implications and proposals for regulation.
Subjects:Mark-to-Market
Fair-Value Accounting
Credit Rating Agencies
Financial Crisis
Regulation
Financial Institutions
Banks
JEL:G01
G24
G28
M41
M48
Persistent Identifier of the first edition:urn:nbn:de:hebis:30-101935
Document Type:Working Paper
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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