Practitioners’ Participation in the Accounting Standard-Setting Process
Accounting & Business Research, Forthcoming
47 Pages Posted: 31 May 2010
Date Written: May 30, 2010
Constituents’ participation in standard-setting processes is seen as a key indicator of a standard setter’s legitimacy. While previous research has mainly examined corporate economic determinants of participation, limited evidence exists on practitioners’ motivations to become involved in developing accounting standards. This study uses expectancy theory to explain practitioners’ intentions to participate in the standard-setting process in the context of the development of financial reporting standards for private enterprises in Canada. The results suggest that the variables of the expectancy valence model are determinant of the attractiveness of becoming involved in the standard-setting process by submitting a comment letter, and the variables of the expectancy force model are determinant of a practitioner’s behavioural intentions to participate in the standard-setting process.
Keywords: Expectancy theory, participation in standard-setting processes, practitioners, financial reporting standards for private enterprises
JEL Classification: M40
Suggested Citation: Suggested Citation