Towards an understanding of the role of standard setters in standard setting
By: Abigail Allen, Karthik Ramanna
Contributors: Ramanna, Karthik; Harvard Business School
Edition: 3rd rev.
Series: Working paper / Harvard Business School -- 10-105; Working paper (Harvard Business School) -- 10-105.
Publisher: Harvard Business School
Published: 2011
Place of publication: [Boston]
Language: eng
Number of pages: 52
Description: We investigate the effect of standard setters in standard setting: We examine how certain professional and political characteristics of FASB members and SEC commissioners predict the accounting "reliability" and "relevance" of proposed standards. Notably, we find FASB members with backgrounds in financial services are more likely to propose standards that decrease "reliability" and increase "relevance," partly due to their tendency to propose fair-value methods. We find opposite results for FASB members affiliated with the Democratic Party, although only when excluding financial-services background as an independent variable. Jackknife procedures show that results are robust to omitting any individual standard setter.
Notes: "June 2010, revised September 2010, June 2011, May 2012" -- Publisher's website.

"First draft: May 21, 2010; this draft: May 24, 2012" -- added t.p.

Includes bibliographical references.