← Search

Political pressures and the evolution of disclosure regulation

Jeremy Bertomeu1,2; Robert P. Magee3

1 Baruch College · 2 City University of New York · 3 Northwestern University

Review of Accounting Studies 2015 open access

This paper examines the process that drives the formation and evolution of disclosure regulations. In equilibrium, changes in the regulation depend on the status quo, standard-setters’ political accountability and underlying objectives, and the cost and benefits of disclosure to reporting entities. Excessive political accountability need not implement the regulation preferred by diversified investors. Political pressures slow standard-setting and, if the standard-setter prefers high levels of disclosure, induce regulatory cycles characterized by long phases of increasing disclosure requirements followed by a sudden deregulation.

DOI
10.1007/s11142-014-9312-9
Volume
20 (2)
Pages
775-802
Language
en
Export
BibTeX
Sources
openalex crossref