Accountancy: Faculty Publications
Mark-to-Market Accounting: Does it Provide Information to Investors
Document Type
Article
Publication Date
11-1-2009
Publication Title
The Journal of Applied Business Research
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.
Recommended Citation
Harter, Charles.
2009.
"Mark-to-Market Accounting: Does it Provide Information to Investors."
The Journal of Applied Business Research, 25 (6): 119-124.
https://digitalcommons.georgiasouthern.edu/account-facpubs/96
Copyright
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