Decentralisation of Labour Law Standard Setting and the Financial Crisis

2010 ◽  
Vol 24 (1) ◽  
pp. 95-107 ◽  
Author(s):  
David Mosso

SYNOPSIS: In this commentary, I propose a new accounting model, in which accounting reports measure wealth and provide information that can diagnose financial health. I argue that my proposed model addresses the major weaknesses of the existing choice-based GAAP model, and the proposed model has the potential to support a much more effective and efficient standard-setting process.


2013 ◽  
Vol 89 (3) ◽  
pp. 811-838 ◽  
Author(s):  
Brad A. Badertscher ◽  
Jeffrey J. Burks ◽  
Peter D. Easton

ABSTRACT When the fair value of an investment security falls below amortized cost and there is significant doubt that the firm can hold the security until the fair value recovers, an other-than-temporary impairment (OTTI) is recognized in net income. Thus, an OTTI is a disclosure about the prospect of recovering an unrealized loss. Our findings suggest that investors priced banks' OTTI recognition during and after the financial crisis. Investors were unable to fully anticipate reported OTTIs, and priced OTTIs incrementally to reported unrealized gains/losses. After banks were required to bifurcate OTTIs, investors priced only the portion of OTTI recognized in earnings. Our results suggest that reporting unrealized losses in earnings via an OTTI changes how investors price the losses. The results inform recent standard-setting initiatives to expand disclosure about changes in fair value. JEL Classifications: M41; M42; M44. Data Availability: Data are available from sources identified in the paper.


Global Jurist ◽  
2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Simone Carrà

AbstractThis paper seeks to contrast the prevailing economic justifications in favour of the ongoing deregulatory reforms (based on the need for greater certainty in terms of firing costs for businesses) with an alternative “liability based” economic approach. Eventually the scope is to ascertain whether, from a purely juridical viewpoint (and also from a Law and Economics perspective), the current legislative trend in labour law is consistent with the initially declared purposes or not. More specifically, the comparison between two very different employment protection systems (i. e., the Italian and the British ones) can show how the current legislative trend based on the predictability of firing costs is only partially consistent with the declared objectives, whereas it could play a much larger role as a hermeneutical tool used in a more business-oriented interpretation of traditional legal notions (among Italian scholars, so-called “categorie”), such as the one of dismissal on “subjective” grounds.


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