Fair Value Accounting: Did it Contribute to the Financial Crisis?

Center for Financial Studies

Chicago Booth Alumni Club of Germany

August 18, 2009: 5:30 PM - 8:00 PM

To determine whether Fair Value Accounting (FVA) contributed to the current crisis in financial markets, economists must examine the explicit and implicit connections of reported accounting numbers to the actions of the players in the financial markets and then ask whether such connections can create or exacerbate the problems that occurred over the last year. Christian Leuz, Joseph Sondheimer Professor of International Economics, Finance and Accounting, Chicago Booth has analyzed the potential connections which include contracts (e.g., covenants and margin requirements), management incentives, and regulatory capital requirements. Prof. Leuz will share key findings of research jointly conducted with Prof. Christian Laux (Goethe University Frankfurt and CFS) on the pros and cons of FVA and its role in the crisis.


Goethe University Frankfurt
House of Finance, Campus Westend
Grüneburgplatz 1
Frankfurt, Germany


No Charge


Register By Email

Deadline: 8/11/2009

Speaker Profiles

Christian Leuz (Speaker)
Joseph Sondheimer Professor of International Economics, Finance and Accounting, Chicago Booth

Christian Leuz is the Joseph Sondheimer Professor of International Economics, Finance and Accounting at the University of Chicago Booth School of Business. He is also a Co-Director of the Initiative on Global Markets, a Research Associate at the National Bureau for Economic Research and the European Corporate Governance Institute and a Fellow at Wharton’s Financial Institution Center. His research examines the role of corporate disclosures, accounting transparency and disclosure regulation in capital markets, corporate governance and corporate financing. His most recent publications have appeared in the Journal of Accounting Research, Journal of Financial Economics, and Journal of Accounting and Economics. Born in Germany, Professor Leuz earned his doctoral degree and “Habilitation” at the Goethe University Frankfurt. Prior to this position, he was the Harold Stott Term Assistant Professor in Accounting at the Wharton School of the University of Pennsylvania and a visiting doctoral fellow at the Simon School of Business, University of Rochester.


David Hart '97 (EXP-2)