The Role of Expectancy Theory and Observed Constituency Response Levels to Exposure Drafts in Accounting Standard-Setting in New Zealand

Victoria University, Wellington, NZ, Centre for Accounting, Governance and Taxation Research Working Paper Number 33

27 Pages Posted: 16 Aug 2008  

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law

Date Written: 2005

Abstract

A brief history of studies of standard setting and constituency lobbying is summarised, and a description of standard setting in New Zealand is provided. Historically, levels of responses to exposure drafts in New Zealand indicate there is no clear existing body of theory to clarify the factors contributing to the pattern in responses to exposure drafts in the last twenty years. The historic longitudinal data from New Zealand exposure drafts exhibited a pattern which could be described as consistently low with two major fluctuations. An alternative approach (expectancy theory) is explored. It is proposed that the response level in New Zealand was generally low over time because there is not a sufficient belief by stakeholders that the Board will change the resulting standard sufficiently to ensure making a submission is cost-benefit efficient. It is suggested that the fluctuations represent periods when there were changes in expectancy by participants of their potential influence on due process.

Keywords: standard setting,constituency lobbying,Vroom, New Zealand, FRSB, SSAPs, FRSs

JEL Classification: M50

Suggested Citation

Baskerville, Rachel F., The Role of Expectancy Theory and Observed Constituency Response Levels to Exposure Drafts in Accounting Standard-Setting in New Zealand (2005). Victoria University, Wellington, NZ, Centre for Accounting, Governance and Taxation Research Working Paper Number 33 . Available at SSRN: https://ssrn.com/abstract=1220671 or http://dx.doi.org/10.2139/ssrn.1220671

Rachel F. Baskerville (Contact Author)

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
006444636951 (Phone)
006444635076 (Fax)

HOME PAGE: http://www.victoria.ac.nz/sacl/staff/rachel-baskerville.aspx

Paper statistics

Downloads
135
Rank
171,284
Abstract Views
907