Corporate Demands and Changes in GPLA

9 Pages Posted: 30 Jul 2008 Last revised: 20 Feb 2018

See all articles by Ehsan H. Feroz

Ehsan H. Feroz

University of Washington, Milgard School of Business-Accounting ; University of Illinois at Urbana-Champaign; Government of the United States of America - US GAO Advisory Council; University of Minnesota, Labovitz School of Business-Department of Accounting; University of Minnesota, Carlson School of Management-Department of Accounting; American Accounting Association

Date Written: 1987

Abstract

This study suggests looking at the specific changes in the FASB Exposure Drafts (rather than simply regressing constituent preferences on the Statements of Financial Accounting Standards) as an alternative approach to existing lobbying studies. It stipulated relationships between the constituent demands for changes in the General Price Level Adjustment (GPLA) Accounting Exposure Drafts and such firm specific characteristics as the firm size, industry group size, level of competition, and return on investment. The empirical evidence indicates that large firms are more likely to demand changes from the FASB. Concentrated industry groups earning high returns on investments are less likely to demand changes from FASB because of political costs considerations.

Keywords: FASB, Standards Setting, Price Level Adjustment, Inflation, GAAP, Lobbying, Political Costs, Economic consequences, Political Economy

JEL Classification: C1, G18, G28, G38, L51, M4

Suggested Citation

Feroz, Ehsan H., Corporate Demands and Changes in GPLA (1987). Journal of Business Finance & Accounting, Vol. 14, No. 3, pp. 409-423, Autumn 1987 , Available at SSRN: https://ssrn.com/abstract=1180652

Ehsan H. Feroz (Contact Author)

University of Washington, Milgard School of Business-Accounting ( email )

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