The (Un?) Fairness of Fair Value: SFAS 157, Irving Fisher and GECONThe (Un?) Fairness of Fair Value: SFAS 157, Irving Fisher and GECON

SFAS 157 & the Market’s Assessment of Fair Valued Assets: An Examination of Fair Valued Assets Held by Financial Firms During and Following the Financial Crisis

Introduced in late-2007, SFAS 157 redefined existing accounting standards concerning fair value accounting and significantly impacted financial reporting for financial institutions. Prior studies, using larger samples of financial firms, have concluded that Level 3 fair values (the most opaque and subjective fair values) were heavily discounted by the market. Consistent with prior studies, this...

Fair Value Accounting for Liabilities and Own Credit Risk

Changes in credit risk may arise when either the value or the risk of corporate assets changes. Changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized into potentially countervailing direct and indirect effects. The indirect effect of risk on equity value is a function of factors that affect the debt value of including leverage,...

Evolution of responses to (un)fairness.

The human sense of fairness is an evolutionary puzzle. To study this, we can look to other species, in which this can be translated empirically into responses to reward distribution. Passive and active protest against receiving less than a partner for the same task is widespread in species that cooperate outside kinship and mating bonds. There is less evidence that nonhuman species seek to equa...

Fairness Constraints: Mechanisms for Fair Classification

Algorithmic decision making systems are ubiquitous across a wide variety of online as well as offline services. These systems rely on complex learning methods and vast amounts of data to optimize the service functionality, satisfaction of the end user and profitability. However, there is a growing concern that these automated decisions can lead, even in the absence of intent, to a lack of fairn...

Fairness Opinions : Are They Fair or Should