IDEAS home Printed from https://ideas.repec.org/a/spr/grdene/v20y2011i2d10.1007_s10726-009-9166-x.html
   My bibliography  Save this article

The Accounting Standards Setting Process in the U.S.: Examination of the SEC–FASB Relationship

Author

Listed:
  • Dan Palmon

    (Rutgers University)

  • Marietta Peytcheva

    (Lehigh University)

  • Ari Yezegel

    (Bentley University)

Abstract

In the U.S. there is a close relationship between the Securities and Exchange Commission (SEC), a governmental agency legally responsible for setting accounting standards, and the Financial Accounting Standards Board (FASB), a private sector body to whom the SEC has delegated this responsibility. In this paper we examine the influence of the SEC on the FASB as evidenced by all major statements issued by the FASB. Minor statements, amendments, and strictly technical pronouncements were omitted because of their limited exposure to the political process. Our analysis reveals that the SEC applied substantial pressure on the FASB in the standard setting process and has not adopted a position of benign neglect.

Suggested Citation

  • Dan Palmon & Marietta Peytcheva & Ari Yezegel, 2011. "The Accounting Standards Setting Process in the U.S.: Examination of the SEC–FASB Relationship," Group Decision and Negotiation, Springer, vol. 20(2), pages 165-183, March.
    • Handle: RePEc:spr:grdene:v:20:y:2011:i:2:d:10.1007_s10726-009-9166-x
    DOI: 10.1007/s10726-009-9166-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10726-009-9166-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10726-009-9166-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morris Fiorina, 1982. "Legislative choice of regulatory forms: Legal process or administrative process?," Public Choice, Springer, vol. 39(1), pages 33-66, January.
    2. Bendor, J. & Glazer, A. & Hammond, T.H., 2000. "Theories of Delegation in Political Science," Papers 00-01-14, California Irvine - School of Social Sciences.
    3. Baldwin, Robert & Cave, Martin & Lodge, Martin, 2011. "Understanding Regulation: Theory, Strategy, and Practice," OUP Catalogue, Oxford University Press, edition 2, number 9780199576098.
    4. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
    5. -, 1986. "Agenda = Agenda," Series Históricas 8749, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Newman, Dp, 1981. "The Secs Influence On Accounting Standards - The Power Of The Veto," Journal of Accounting Research, Wiley Blackwell, vol. 19, pages 134-156.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gary Kleinman & Pamela Strickland & Asokan Anandarajan, 2016. "The Accounting Court: Some Speculations on Why Not?," Group Decision and Negotiation, Springer, vol. 25(4), pages 845-871, July.
    2. Alon, Anna & Dwyer, Peggy D., 2016. "SEC's acceptance of IFRS-based financial reporting: An examination based in institutional theory," Accounting, Organizations and Society, Elsevier, vol. 48(C), pages 1-16.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wafula, Francis & Molyneux, Catherine & Mackintosh, Maureen & Goodman, Catherine, 2013. "Protecting the public or setting the bar too high? Understanding the causes and consequences of regulatory actions of front-line regulators and specialized drug shop operators in Kenya," Social Science & Medicine, Elsevier, vol. 97(C), pages 220-227.
    2. Al-Hadi, Ahmed & Habib, Ahsan, 2023. "Consequences of state-level regulations in accounting, finance, and corporate governance: A review," Advances in accounting, Elsevier, vol. 60(C).
    3. P. Hägg, 1997. "Theories on the Economics of Regulation: A Survey of the Literature from a European Perspective," European Journal of Law and Economics, Springer, vol. 4(4), pages 337-370, December.
    4. Dassler, Thoralf, 2006. "Combining theories of regulation - Proposing a framework for analysing regulatory systems worldwide," Utilities Policy, Elsevier, vol. 14(1), pages 31-43, March.
    5. Jonathan Lewallen, 2021. "Emerging technologies and problem definition uncertainty: The case of cybersecurity," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1035-1052, October.
    6. Dennis W. Carlton & Randal C. Picker, 2014. "Antitrust and Regulation," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 25-61, National Bureau of Economic Research, Inc.
    7. Keohane, Nathaniel O. & Revesz, Richard L. & Stavins, Robert N., 1997. "The Positive Political Economy of Instrument Choice in Environmental Policy," Discussion Papers 10759, Resources for the Future.
    8. Parker, David, 2001. "Economic Regulation: A Preliminary Literature Review and Summary of Research Questions Arising," Centre on Regulation and Competition (CRC) Working papers 30616, University of Manchester, Institute for Development Policy and Management (IDPM).
    9. Toshkov, Dimiter & Yesilkagit, Kutsal & Carroll, Brendan, 2020. "Government Capacity, Societal Trust or Party Preferences? What Accounts for the Variety of National Policy Responses to the COVID-19 Pandemic in Europe?," OSF Preprints 7chpu, Center for Open Science.
    10. Abiloro, T. O & Ilugbami, J. O., 2023. "Regulatory Institutions and National Economic Development in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1552-1575, May.
    11. Jeroen van der Heijden, 2017. "Brighter and Darker Sides of Intermediation," The ANNALS of the American Academy of Political and Social Science, , vol. 670(1), pages 207-224, March.
    12. Lee, Changyen & Cheng, Chun-Fa & Chuang, Min-Ta & Hsu, Wei-Chieh & Chen, Yen-Hung & Cheng, Kuo-Tai, 2018. "How transparency and accountability matter in regulating the Taiwan Water Supply Corporation," Utilities Policy, Elsevier, vol. 52(C), pages 50-58.
    13. Philip O’Regan, 2010. "Regulation, the public interest and the establishment of an accounting supervisory body," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(4), pages 297-312, November.
    14. J.A. den Hertog, 2010. "Review of economic theories of regulation," Working Papers 10-18, Utrecht School of Economics.
    15. Ayranci, Evren, 2010. "Family involvement in and institutionalization of family businesses: A research," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 3(3), pages 1-22, October.
    16. Agarwalla, Astha, 2011. "Agglomeration Economies and Productivity Growth in India," IIMA Working Papers WP2011-01-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    17. Nelson, Edward, 2017. "Reaffirming the Influence of Milton Friedman on U.K. Economic Policy," Working Papers 2017-01, University of Sydney, School of Economics, revised Feb 2017.
    18. Magnus Söderberg, 2008. "Uncertainty and regulatory outcome in the Swedish electricity distribution sector," European Journal of Law and Economics, Springer, vol. 25(1), pages 79-94, February.
    19. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    20. Raitio, Kaisa, 2013. "Discursive institutionalist approach to conflict management analysis — The case of old-growth forest conflicts on state-owned land in Finland," Forest Policy and Economics, Elsevier, vol. 33(C), pages 97-103.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:grdene:v:20:y:2011:i:2:d:10.1007_s10726-009-9166-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.