Towards an understanding of the role of standard setters in standard setting
By: Abigail Allen, Karthik Ramanna
Contributors: Ramanna, Karthik; Harvard Business School
Edition: 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: 62
Description: We investigate the idiosyncratic influence of standard setters in standard setting. In particular, we examine how FASB members' and SEC commissioners' length of tenure, past professional experience, and political affiliations vary with the degree to which exposure drafts issued during their terms are perceived as decreasing accounting "reliability" and increasing accounting "relevance." Among other results, we find that members' and commissioners' length of service on the board and a prior career in investment banking/ investment management are associated with exposure drafts perceived as decreasing accounting "reliability;" and FASB members' affiliations with the Democratic Party are associated with proposing standards perceived as increasing accounting "reliability." The results contribute to a broader understanding of the implications of regulated standard setting beyond our current knowledge of the role of corporate lobbying in the process.
Notes: "June 2010, revised September 2010, June 2011" -- Publisher's website.

"First draft: May 21, 2010; This draft: June 6, 2011" -- added t.p.

Includes bibliographical references.