Unité mixte de recherche 7235

Taking Diversity into Account: the Diversity of Financial Institutions and Accounting Regulation

Gaëtan Le Quang

The global financial crisis and what followed point out at least two major failures of the financial system: its inability to contain liquidity risk and its inability to fund long term investments. We think that these two problems come from the setting up of rules and practices that tend to homogenize market participants’ incentives and behaviors. Fair value accounting is one element of this set of practices and rules. If the rationale behind fair value accounting – that is enhancing transparency in order to limit unreported losses and manipulations – can justify its use in the case of short-term financial institutions (meaning institutions whose time horizon is short because of the maturity of their liabilities) that constantly face the risk of a sudden liquidity need, it seems totally irrelevant when it comes to long-term financial institutions that will not face liquidity needs before ten or twenty years. In this perspective, we develop a model that shows that an accounting regulation that takes the diversity of financial institutions into account offers better results both in terms of liquidity and in terms of efficiency than a regulation that ignores this diversity.

AGENDA

mardi 26 septembre 2023

Recherche et Economie et Socioéconomie Politique, des Institutions et des Régulations (RESPIR)

André Orléan (EHESS)

ATTENTION : exceptionnellement, le séminaire aura lieu en G 301-302 et non en G614b

Valeur et monnaie: une approche institutionnaliste

jeudi 28 septembre 2023

Lunch

Philippe POINSOT

Quels sont les gagnants et les perdants des réformes de la fiscalité locale en France ? Une évaluation de la suppression de la CVAE

jeudi 28 septembre 2023

Développement Durable Environnement et Energie (DDEE)

Romain Espinosa (CIRED)

Salle 614B de 11h – 12h

The Animal Welfare Levy

jeudi 5 octobre 2023

Groupe de travail Economie Comportementale

Aurélie Bonein (Université de Rennes 1, CREM)

TBA

jeudi 5 octobre 2023

Doctorants

Himani Pasricha

The impact of climate variability on internal migration in Thailand.

dimanche 8 octobre 2023

Professeurs invités

Fayçal Hamdi

dimanche 8 octobre 2023

Professeurs invités

Tobias Kretschmmer

lundi 9 octobre 2023

Professeurs invités

Alain Guay

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