Fair Value Accounting, Illiquid Assets, and Financial Stability

This paper is part of the author’s dissertation at the Université Toulouse 1 Capitole. The author thanks his advisor, Guillaume Plantin, who provided invaluable advice and constant support at every stage of this work. The author has also benefited from the comments of an anonymous associate editor, two anonymous reviewers, David Aboody, Amir Amel-Zadeh, Jeremy Bertomeu, Catherine Casamatta, Judson Caskey (discussant), Gilles Chemla, Hans Christensen, Jacques Crémer, Alexander Frankel, Henry Friedman, Stuart Gabriel, Pingyang Gao, Mark Garmaise, Jonathan Glover, Kathleen Hanley, Ulrich Hege, Thomas Hemmer, Johannes Hörner, John Hughes, François Larmande, Christian Leuz, Francis Longstaff, Stephani Mason (discussant), Roger Myerson, Haresh Sapra, Andreas Scholze (discussant), Lars Stole, Brett Trueman, Xavier Vives, Alfred Wagenhofer, and conference/workshop participants at Frankfurt School of Finance and Management, Tilburg University, University of California, Los Angeles, University of Oxford, Universitat Pompeu Fabra, Université Toulouse 1 Capitole, University of Warwick, the 2017 American Accounting Association (AAA) Rookie Camp, the AAA Western Region Meeting, the 2017 Accounting Research Workshop, the 2017 Canadian Academic Accounting Association Annual Conference, the 2017 European Accounting Association Talent Workshop, and the 2022 Hawai′i Accounting Research Conference. A previous version of the paper circulated under the title “Fair Value Accounting, Transparency, and Financial Stability.” All errors are the author’s own.