Review of Accounting Studies Vol. 20 No. 2 2015
Political pressures and the evolution of disclosure regulation
open access
Abstract
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
- Issue
- 2
- Pages
- 775-802
- Language
- en
- Sources
- openalex crossref