This paper integrates prior studies of accounting policy choice and lobbying activities by testing the empirical implications of Becker’s (1983) theory of competition among pressure groups for political influence over the determination of accounting standards. The theory is applied to explain the nature and outcome of conflict among pressure groups representing financial intermediaries (supplie...

Ken Ricci w ill be the next Student Union d irector, it was announced last n ight by Student Union D irector Tom B irsic and Student Body president-elect M ike Gassman. Ricci assumes his new duties A p ril 1. The sophomore accounting in ­ tent is from Cleveland, Ohio and served as assistant com ptro lle r th is year. He was the financia l troub le ­ shooter and developed a budget to keep Studen...

This paper reveals and tests a new theoretical implication of the credit channel of monetary policy: as financial frictions (monitoring or auditing costs) increase, the reaction of stock prices to monetary policy shocks decreases. Correspondingly, towards the end of the Enron accounting scandal, the stock prices of firms sharing the same auditor as Enron responded by about 50 to 60 basis points...

We study the intertemporal properties of conservatism with a focus on managerial incentives. In our main model, conservatism results in smaller expected payouts to the manager (agent) in early periods and larger expected payouts in later periods. Conservatism shifts (ambiguous) evidence that might be used to recognize good performance in early periods to later periods. In later periods, good pe...

During the 1990s Greek auditors and branches of international accounting firms in Greece fought a veritable professional war over the jurisdiction of statutory auditing. This intra-professional conflict developed against a backdrop of profound changes in the socio-economic and political fabric of the country, along pro-liberal, free market lines. This paper looks at a particular episode of that...

Future areas of application for mobile agents technology are open, distributed and decentralized networks, where Mobile Agents autonomously perform tasks on behalf of their principals . In this paper, we address the conceptual design of payments for and between Mobile Agents, particularly against the background of the Malicious Host Problem. We analyze the requirements on payment systems for Mo...

In seeking to meet the objectives of financial reporting stated in the IASB’s Conceptual Framework, the current ‘balance-sheet’ approach is necessary but not sufficient. Critical, but largely overlooked in the Framework, is the role of uncertainty, which we argue defines the role of accrual accounting in providing useful information to investors. This role is in some sense paradoxical: on the o...

I probably do not need to emphasise that meaningful accounting standards and their effective implementation are highly relevant to any central bank’s responsibilities for financial stability. They help to ensure the safe and efficient functioning of the financial system. So it is essential that accounting standards have a clear economic rationale, promote comparability and secure adequate discl...

After adoption of International Financial Reporting Standards (IFRS) for consolidated financial statements by European-listed companies, a number of European countries still require the use of local standards in the preparation of legal entity financial statements. This study investigates whether this requirement can be explained by a low demand for high-quality financial reporting and an orien...

SYNOPSIS: We report on a panel discussion at the 2001 CMU Accounting MiniConference under the title "Intellectual Foundations of Accounting." We provide a background and the motivation for the discussion and present the remarl<s by the four panelists. A number of perspectives are taken. Professor Sunder emphasizes dualities in accounting. Professor Demski stresses the endogeneity of accounting ...