...Yi‐Ping Liao Purpose This study aims to empirically investigate whether the adoption of fair‐value‐accounting decreases the relevance of banks' capital adequacy ratios (CARs) in explaining insolvency risks. Additionally, how the disclosure quality affects the superiority of fair‐value‐based CARs...

... the vulnerability of “mark to market” accounting, and has renewed the debate between historical cost and fair value measurements on the balance sheet [1] . The Financial Accounting Standards Board's (FASB) strongest argument in its push towards fair value accounting is that historical cost, while traditionally...