Towards an understanding of the role of standard setters in standard setting

• Autores: Abigail Allen, Karthik Ramanna
• Localización: Journal of accounting and economics, ISSN 0165-4101, Vol. 55, Nº. 1, 2013, págs. 66-90
• Idioma: inglés
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• Resumen

  • 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.