Financial Accounting Standards Setting: A Social Science Perspective
Advances in Accounting, Vol. 5 (Lead Article), p. 3-14, 1987
Posted: 22 Oct 2008 Last revised: 20 Feb 2018
Date Written: October 21, 2008
This paper draws on the group theory to derive some predictions regarding interest group participation in financial accounting setting. Out of the total spectrum of groups that can be potentially affected by accounting standards, only those who foresee large benefits from securing preferred accounting rules are expected to lobby the Financial Accounting Standards Board (FASB). Further, lobbying is likely to be industry specific rather than being overly general or gratuitous. Finally, group success in lobbying FASB might be inversely related to the size of the group.
Keywords: Financial Accounting, Accounting Standards Setting, FASB, Lobby, Interest Groups, Self-Regulation, Political Economy
JEL Classification: M41
Suggested Citation: Suggested Citation