References (28)



Lobbying and Uniform Disclosure Regulation

Henry L. Friedman

University of California, Los Angeles (UCLA) - Accounting Area

Mirko Stanislav Heinle

University of Pennsylvania - Accounting Department

July 23, 2015

This study develops a model to examine the costs and benefits of uniform versus individualized accounting regulation in the presence of political lobbying costs. The model suggests that uniform regulation creates a free-rider problem between lobbyists that reduces the economic distortions caused by lobbying. However, uniform regulation can prove costly by forcing the same treatment on heterogeneous firms. Therefore, a commitment to uniform regulation is socially beneficial when firms are sufficiently homogenous or the costs of lobbying to society are large. We extend the model and show that more uniform regulation can (partially) substitute for private corporate governance mechanisms but can also be (partially) undone when firms themselves can form lobbying groups to overcome the free-rider problem.

Number of Pages in PDF File: 43

Keywords: Securities, Regulation, Lobbying

JEL Classification: D72, G38, L51, M48

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Date posted: July 15, 2012 ; Last revised: July 24, 2015

Suggested Citation

Friedman, Henry L. and Heinle, Mirko Stanislav, Lobbying and Uniform Disclosure Regulation (July 23, 2015). Available at SSRN: http://ssrn.com/abstract=2106788 or http://dx.doi.org/10.2139/ssrn.2106788

Contact Information

Henry L. Friedman
University of California, Los Angeles (UCLA) - Accounting Area ( email )
D416 Anderson Complex
Los Angeles, CA 90095-1481
United States
Mirko Stanislav Heinle (Contact Author)
University of Pennsylvania - Accounting Department ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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