Abstract

http://ssrn.com/abstract=1181364
 


 



TOWARD AN EMPIRICAL INSTITUTIONAL GOVERNANCE THEORY: Analyses of the Decisions by the 50 U.S. State Governments to Adopt Generally Accepted Accounting Principles


Vivian L. Carpenter


Atwater Entertainment

Rita Hartung Cheng


University of Wisconsin - Milwaukee - School of Business Administration

Ehsan H. Feroz


University of Washington, Tacoma-Milgard School of Business; Vernon Zimmerman Center, University of Illinois; US Government Accountability Office

July 27, 2008

Corporate Ownership & Control, Vol. 4, Issue 4, Summer 2007, pp. 30-46.

Abstract:     
We develop and empirically test an institutional governance theory for explaining the decisions by the 50 US State Governments to adopt Generally Accepted Accounting Principles( GAAP) for external financial reporting. Governmental accounting studies have generally explained the choice of an accounting method in terms of the economic consequences of these choices for managerial welfare and other microeconomic determinants of those decisions. Our study develops an institutional governance theory and demonstrates that institutional governance variables in conjunction with traditional economic agency variables can improve the explanatory power of government accounting choice models. Our empirical results are consistent with the stipulations of the institutional governance theory.

Number of Pages in PDF File: 53

Keywords: Institutional Theory, Agency Theory, Corporate Governance, GAAP, State Governments, Political Science, Institutional Economics

JEL Classification: C10, E11, G3, H10, L3, L51, M4

Accepted Paper Series





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Date posted: July 30, 2008 ; Last revised: August 27, 2014

Suggested Citation

Carpenter, Vivian L. and Cheng, Rita Hartung and Feroz, Ehsan H., TOWARD AN EMPIRICAL INSTITUTIONAL GOVERNANCE THEORY: Analyses of the Decisions by the 50 U.S. State Governments to Adopt Generally Accepted Accounting Principles (July 27, 2008). Corporate Ownership & Control, Vol. 4, Issue 4, Summer 2007, pp. 30-46.. Available at SSRN: http://ssrn.com/abstract=1181364

Contact Information

Vivian L. Carpenter
Atwater Entertainment ( email )
Detrroit, MI
United States
Rita Hartung Cheng
University of Wisconsin - Milwaukee - School of Business Administration ( email )
P.O. Box 742
3202 N. Maryland Ave.
Milwaukee, WI 53201-0742
United States
(414) 229-4238 (Phone)
HOME PAGE: http://www.uwm.edu/~rcheng/
Ehsan H. Feroz (Contact Author)
University of Washington, Tacoma-Milgard School of Business ( email )
1900 Commerce Street, Campus Box 358420
Tacoma, WA 98402-3100
United States
(253) 692 4728 (Phone)
253 692 4523 (Fax)
HOME PAGE: http://www.tacoma.washington.edu/business
Vernon Zimmerman Center, University of Illinois ( email )
515 East Gregory Drive# 2307
Champaign, IL 61820
United States
US Government Accountability Office ( email )
441 G Street NW
Washington, DC 20548-0001
United States
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