Fair value accounting and the financial crisis: a literature-based analysis

2016 ◽  
Vol 14 (1) ◽  
pp. 49-71 ◽  
Author(s):  
Elisa Menicucci ◽  
Guido Paolucci
Keyword(s):  
Financial Crisis ◽  
Literature Review ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Fair Value ◽  
Research Literature ◽  
Fair Value Accounting ◽  
Comprehensive Overview ◽  
Content Type

Purpose The aim of this paper is to review the main results of accounting research literature examining the role of fair value accounting (FVA) within financial crisis. This research analyzes theoretical and empirical studies on the controversial topic about FVA and its alleged pro-cyclicality in the context of the financial crisis to offer solid reflections for improving the fair value research agenda. Design/methodology/approach This paper consists of a descriptive literature review. Theoretical and empirical research studies were investigated and then systematized in a framework to guide a literature-based analysis and critique of the relevant literature published about this topic. Findings The review reveals that there has been only a limited amount of research into the role of FVA within the financial crisis. This topic has not been researched extensively, and there is no empirical evidence that FVA caused the financial crunch and the subsequent financial crisis. Research limitations/implications The restricted amount of literature that directly deals with FVA in the context of the financial crisis is the main limitation of this paper. The specificity of the theme narrows the coverage. However, the adopted research methodology enabled the main contributions concerning this issue to be collected, to realize a concise and comprehensive portrait of the debate surrounding FVA and the financial crisis. Practical implications This paper can be of use to both researchers and practitioners interested in investigating strengths and weaknesses of the fair value concept for accounting purposes. The paper sets out the main findings of the academic literature and identifies future avenues of theoretical and practical research which may support standard setters to draw up improved accounting regulation. Originality/value Few existing studies consist of a literature review that examines theoretical and empirical researches on the influence of FVA on the financial system. This review offers a comprehensive overview on research literature concerning the responsibility of FVA in causing the financial crisis. The main contribution of this paper relates to further understanding the role and effects of accounting matters concerning fair value in a broad sense within the context of the financial crisis.

The localised accounting environment in the implementation of fair value accounting in Indonesia

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bernadia Linggar Yekti Nugraheni ◽  
Lorne Stewart Cummings ◽  
Alan Kilgore
Keyword(s):  
Emerging Economies ◽  
Accounting Standards ◽  
Fair Value ◽  
Successful Implementation ◽  
Fair Value Accounting ◽  
Structured Interviews ◽  
Content Type ◽  
Emerging Country ◽  
Government Involvement

Purpose This case study aims to investigate the role of actors in the implementation of fair value standards in an emerging country, Indonesia. Design/methodology/approach This study uses semi-structured interviews with important actors within the local accounting profession, standard setting and regulatory environment, to analyse fair value accounting implementation. This study also incorporates information from press releases and newspapers, to provide a more comprehensive picture of fair value implementation. Findings First, professionals undertake routine actions, cultivate interests and strategically navigate their environment during the process of fair value standard implementation. Second, the role of appraisers becomes more prominent during this process. Third, government involvement is significant in ensuring the successful implementation of global accounting standards. Research limitations/implications First, differing localised contexts, including communities and actors, may shape how an emerging country undertakes the diffusion and implementation of global standards, which in turn can also lead to institutional change. Second, government involvement is crucial in supporting the implementation of global accounting standards within emerging economies. Third, implementing market-based measurements within emerging economies characterised by a lack of an active and liquid market may present challenges. Practical implications Third, implementing market-based measurements within emerging economies characterised by a lack of an active and liquid market may present challenges. Originality/value This study applies the concept of Institutional Work within Institutional Theory to explain how fair value standards are implemented within a localised emerging economy characterised by unique actor roles and goal-directed action.

On theoretical engorgement and the myth of fair value accounting in China: a reply

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kathryn Bewley ◽  
Cameron Graham ◽  
Songlan Peng
Keyword(s):  
Accounting Standards ◽  
Movement Analysis ◽  
Fair Value ◽  
Research Approach ◽  
Fair Value Accounting ◽  
Political Factors ◽  
Content Type ◽  
Accounting Research

PurposeThis article is a reply to “On theoretical engorgement and the myth of fair value accounting in China” Nobes (2019) from the authors of “Adaptability to fair value accounting in an emerging economy: A case study of China's IRFS convergence” (Peng and Bewley, 2010) and “The Winding Road to Fair Value Accounting in China: A Social Movement Analysis” (Bewley et al., 2018).Design/methodology/approachThis article engages directly with the arguments of the criticism.FindingsThis article argues that the author of the commentary misunderstands the purpose, content and findings of both papers. By providing only a narrowly focused technical analysis of the new Chinese accounting standards, the author fails to see that their qualitative research approach reveals important, complex social and political factors at play in China's attempts to adopt modern international accounting principles. The commentary expresses a view that accounting is a neutral technology that needs only to be clearly defined and enumerated to be correctly implemented, whereas this research takes a much broader and deeper perspective. The authors seek to understand how China was able to successfully adopt fair value accounting standards in 2006, whereas an earlier attempt to introduce fair value in 1998 had led to abuse of fair value measurements and the eventual repeal of fair value regulations in 2001.Practical implicationsThis article helps clarify the purpose of qualitative accounting research, the role of theory in such research and the usefulness of theory in describing and explaining empirical case facts related to changes in accounting standards, particularly in an international context.Originality/valueThis article contributes to a better appreciation of qualitative accounting research.

Knowledge management: does gender matter? A systematic review of literature

2020 ◽  
Vol 24 (6) ◽  
pp. 1315-1342
Author(s):  
Peter Heisig ◽  
Selvi Kannan
Keyword(s):  
Knowledge Management ◽  
Literature Review ◽  
Conceptual Framework ◽  
Systematic Literature Review ◽  
Practical Implication ◽  
Research Literature ◽  
Future Research ◽  
Content Type ◽  
And Gender

Purpose This paper aims to review for the first time existing research literature about the role of gender in creating, sharing and using knowledge in organizations and proposes a conceptual framework to guide future research directions. Design/methodology/approach Based on the systematic literature review method this study collects, synthesizes and analyses articles related to knowledge management (KM) and gender published in online databases by following a pre-defined review protocol. The paper analyses 41 papers published in peer-reviewed journals. Findings The role of gender in KM has been rarely addressed in KM journals and journals with specific emphasis on gender. The existing literature is fragmented, but existing research suggests that knowledge sharing might be influenced by gender. Based on the analysis and synthesis, a conceptual framework is proposed to guide further research on determining if gender matters in KM. Research limitations/implications Academic researchers should aim to include gender-related variables into their KM research to further explore if gender matters in KM. Practical implications The practical implication suggests that managers and knowledge managers should raise awareness about how stereotypes and gendered expectations about role behaviour affect how knowledge and experiences are created and shared within the organization. Social implications The authors believe that a better understanding of knowledge handling and gendered role expectations at the workplace could also have an impact beyond organizational boundaries. Originality/value The paper presents the first comprehensive systematic literature review of the article published on knowledge creation, sharing and usage and gender and provides a conceptual framework for future research.

The role of loyalty programs in healthcare service ecosystems

2017 ◽  
Vol 29 (6) ◽  
pp. 899-919 ◽  
Author(s):  
Vusal Gambarov ◽  
Debora Sarno ◽  
Xhimi Hysa ◽  
Mario Calabrese ◽  
Alberto Bilotta
Keyword(s):  
Service Quality ◽  
Healthcare Service ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Well Being ◽  
Loyalty Programs ◽  
Content Type ◽  
Service Ecosystems ◽  
Service Ecosystem

Purpose The purpose of this paper is to investigate the role of patient loyalty programs in healthcare environment, generally considered as a way to engage patients and potentially increase the perception of service quality of healthcare systems, but not systematically analyzed at the state of the art. Design/methodology/approach The Service Dominant logic and, in particular, the service ecosystem construct are adopted and integrated with relevant literature references and empirical studies on a sample of patients. Loyalty programs are interpreted as institutions coordinating actors of the healthcare service ecosystem. Findings A conceptual model linking loyalty programs to patients and healthcare providers’ co-creation practices, engagement, satisfaction, trust, and perception of service quality is build and explained based on literature and a case study, finding that loyalty programs can strengthen the adaptability and the well-being of a healthcare service ecosystem. Practical implications This contribution can have a significant impact on the design of new and the evolution of current healthcare service ecosystem, providing interesting insights to practitioners on the topic of loyalty programs, both for their development and their benefits. Originality/value The paper revised previous healthcare service ecosystems and highlights the role of the loyalty program institution at each level and between levels of the ecosystem.

Beyond storing old stuff: analysing the socio-economic value of museums

2015 ◽  
Vol 23 (4) ◽  
pp. 331-338 ◽  
Author(s):  
Takalani Eric Mudzanani
Keyword(s):  
Economic Development ◽  
Literature Review ◽  
Relevant Literature ◽  
Economic Value ◽  
Active Role ◽  
Content Type ◽  
Economic Role ◽  
Societal Development ◽  
Tourism Product

Purpose – This paper aims to analyse the socio-economic role of museums. Design/methodology/approach – To explore the socio-economic role of museums, relevant literature on the role of museums was reviewed. Books and articles were consulted to shed light on museums as a cultural tourism product offering within the broader context of tourism as a catalyst of societal development. Findings – The literature review revealed that museums are symbols of unity and identity and can serve as a catalyst of economic development of local communities. The article dispels the perception that museums are places where old stuff is stored and that they are at the periphery of societal development. Research limitations/implications – The paper is based on literature review and not an empirical study. Practical implications – This paper proposes that museums should play a more active role in the socio-economic development of society. Social implications – This paper suggests that museums should educate the public about their role and place in society. Most importantly, they should create awareness about the socio-economic opportunities which they create. Thus, museums should position themselves as part of the societal effort to deal with societal challenges and not relegate themselves to the fringes of society. To this end, museums should establish partnerships with other agents of societal development. These organisations include chambers of commerce, educational institutions, government agencies and tourism organisations. Originality/value – The paper dispels the perception that museums are places where old stuff is stored and that they are at the periphery of societal development.

scholarly journals Eight challenges of servitisation for the configuration, measurement and management of organisations

2016 ◽  
Vol 26 (6) ◽  
pp. 745-763 ◽  
Author(s):  
Sai S. Nudurupati ◽  
David Lascelles ◽  
Gillian Wright ◽  
Nick Yip
Keyword(s):  
Literature Review ◽  
Single Case ◽  
Empirical Studies ◽  
Research Literature ◽  
The Body ◽  
Research Approach ◽  
Senior Managers ◽  
Related Field ◽  
Content Type ◽  
Product Service

Purpose There is an extensive research literature on servitisation and the related field of product-service systems that has emerged independently from different fields including engineering, management, design and environmental studies. The purpose of this paper is to conduct a structured literature review to explore, identify and synthesise the multi-disciplinary research challenges in the journey towards servitisation. Design/methodology/approach The research approach is a systematic literature review using key word searches and citation tracking for research reported between 1990 and 2013 in research databases that cover the fields which have generated the body of knowledge. Findings One of the key findings from the extant literature on servitisation is that it suffers from three fundamental weaknesses. First, numerous studies are conceptual in nature with limited practicality. Second, there are relatively few empirical studies, and often the findings relate to a single case study based on the insights of a limited number of senior managers. Third, often the dynamics are insufficiently studied in these organisations because data for most cases are collected post-event. Research limitations/implications Based on the literature review and its shortfalls, this paper proposes a holistic framework of eight themes that require further attention from academic researchers in order that a more complete conceptual understanding of servitisation is developed to support practice. Practical implications Each theme in the framework has an associated list of questions that can be addressed through research and presented to managers as a challenge agenda to improve their servitisation efforts. That servitisation is associated with differentiation and competitive advantage makes this a valuable approach for managing corporate performance. Originality/value Research from multi-disciplinary sources is synergised in order to develop an overarching servitisation agenda that transcends domain-based boundaries. This paves the way for an approach to servitisation that is coherent and harmonious.

scholarly journals Accounting measurement at fair value in the conditions of financial crisis

2021 ◽  
pp. 275-287
Author(s):  
Vladimir Obradovic ◽  
Nemanja Karapavlovic
Keyword(s):  
Financial Crisis ◽  
Credit Rating ◽  
Global Financial Crisis ◽  
Relevant Literature ◽  
Professional Community ◽  
Fair Value ◽  
Risky Behaviour ◽  
Accounting Measurement ◽  
The Impact

The subject of the paper is the role of fair value, as one of the accounting measurement attributes (measurement basis) of assets and liabilities in the statement of financial position, in the conditions of crisis, based on the experience with global financial crisis which appeared in 2008 in the US financial sector, and later spilled over into the real sector of that country, as well as, to a greater or lesser extent, to the rest of the world. The crisis has stimulated discussions in the scientific and professional community about the usefulness of using fair value and the impact of this measurement attribute on the appearance and widening of the crisis. The aim of the paper is to consider the impact of fair value application on the occurrence of the mentioned financial crisis. Qualitative research methodology based on the review of relevant literature in the field of research subject has been applied. A review of literature available to us has shown that there is no unique attitude about the role of fair value in the financial crisis which appeared in 2008. In that sense, opinions range from the one that fair value played little or no role in the financial crisis, over the opinion that it may have contributed to the acceleration of the crisis, to the opinion that it was one of its main causes and that it should be suspended. It is certain that fair value cannot be declared as the only financial crisis causer, and that there is no only one causer. Inadequate banking practices, risky behaviour of financial markets participants, inconsistent and insufficiently coordinated macroeconomic policies, inadequate structural reforms and omission of credit rating agencies dominantly caused the financial crisis and contributed to its spread.

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