A distorted assessment of risk, based upon misleading credit ratings, was one of the main causes of the financial crisis. One mechanism responsible for biased credit ratings is off-balance-sheet financing techniques, used by corporations and banks to optimize balance sheets in order to increase credit ratings. The market for leasing is one of these markets which still offers the opportunity to increase de facto indebtedness without impacting the equity ratio despite regulatory initiatives. The central objective of this research project was to understand how the leasing industry and its regulatory advisors mitigate the impact of regulatory initiatives and reconfigure their offer to corporations to maintain attractive off-balance-sheet treatment.
|Jan Friedrich||The Effect of Academic Literature on Accounting Regulation: Evidence from Leases in Germany|
Accounting History Review
|Jan Friedrich, Matthias Thiemann||Drawing the Line: The Political Economy of Off-Balance Sheet-Financing||2016||Financial Intermediation|
|Why the Initial Regulation of Financial Innovations is Decisive − Regulatory Arbitrage and Off-Balance-Sheet Leasing in Germany|
Policy Letter No. 69