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The costs and benefits of increased accounting regulation: a case study of Lloyd's of London

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  • D. Gwilliam
  • R. Macve
  • G. Meeks

Abstract

While a valuable literature exists on theoretical considerations in cost-benefit analysis (cba) of accounting regulation, and although the regulators themselves acknowledge the need for cost-benefit appraisal of their work, empirical analysis of the costs and benefits of changes in accounting regulation is almost non-existent. This paper attempts such an analysis for a step change in accounting and audit regulation—at Lloyd's between 1982 and 1985. It aims both to advance the cba methodology, and to inform debate about the evolution of the Lloyd's market. While the estimates do not show whether the changes produced an optimal level or form of Lloyd's regulation, they do suggest that, comparing changes, the extra benefits exceeded the extra costs—whether the chosen accounting unit is a private one—Lloyd's Names—or a social one.

Suggested Citation

  • D. Gwilliam & R. Macve & G. Meeks, 2005. "The costs and benefits of increased accounting regulation: a case study of Lloyd's of London," Accounting and Business Research, Taylor & Francis Journals, vol. 35(2), pages 129-146.
    • Handle: RePEc:taf:acctbr:v:35:y:2005:i:2:p:129-146
    DOI: 10.1080/00014788.2005.9729669
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    References listed on IDEAS

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    Cited by:

    1. Weetman, Pauline, 2006. "Discovering the ‘international’ in accounting and finance," The British Accounting Review, Elsevier, vol. 38(4), pages 351-370.
    2. Neil Rollings, 2007. "British business history: A review of the periodical literature for 2005," Business History, Taylor & Francis Journals, vol. 49(3), pages 271-292.
    3. Macve, R.H., 2015. "Fair value vs conservatism? Aspects of the history of accounting, auditing, business and finance from ancient Mesopotamia to modern China," The British Accounting Review, Elsevier, vol. 47(2), pages 124-141.

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