How does accounting fit into a firm’s political strategy?

Johnston, Derek; Jones, Denise A.

doi:10.1016/j.jaccpubpol.2006.01.005

Cited by 18 publications

(3 citation statements)

References 46 publications

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“…Our study adds to this literature by examining the relationship between financial constraints and the political strategies of private firms. We thus complement prior literature on corporate lobbying activities (Johnston & Jones, 2006; Lockhart & Unlu, 2018), CSR activities (Lee et al, 2017; Lin et al, 2015), corporate philanthropy (Bertrand et al, 2020) and politically motivated relocation (Chen et al, 2020).…”

Section: Introductionmentioning

confidence: 71%

Financial constraints and political catering disclosures of non‐state‐owned firms: Evidence from textual analysis

Kong

Shi

2023

Accounting & Finance

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Using textual analysis techniques, we construct a novel measure to quantify the level of political information in forward‐looking disclosures of privately controlled firms. Our results show that private firms with serious financial constraints are more likely to reveal more political information in forward‐looking disclosures. Plausible mechanisms driving our findings are firms' high growth, under‐investment, and weaker political connections, suggesting that firms cater to governments in the expectation of more financing resources. Finally, we show the economic consequences of political catering strategy on corporate performance.

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Section: Introductionmentioning

confidence: 71%

Financial constraints and political catering disclosures of non‐state‐owned firms: Evidence from textual analysis

Kong

Shi

2023

Accounting & Finance

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“…Indirectly, institutions might lobby congress to hear their opinion regarding the standards. Managers can do just that with congressional hearings, where managers can present their opinions on standards that can be economically bad [26].…”

Section: Discussionmentioning

confidence: 99%

Due Process in Financial Accounting

Kasingku

2023

INFEB

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This study intends to descriptively elaborate on the due process of standard-setting in Financial Accounting. A literature review is conducted to explain the due process concept. This study discusses the importance of developing or creating standards in Financial Accounting, the standard-setting in various countries, and the uses of due process in developing the standards. As a result, it was found that the standard-setting process is affected heavily by political factors. Standard setters, Financial Accounting Standard Board, and International Accounting Standard Board cannot avoid political factors in developing or creating the standards. Consequently, due process is used to formulate the standards to facilitate the political factors in setting the accounting standards.

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“…Johnston u. Jones (2006) untersuchen den Zusammenhang zwischen Anreizen zur Beeinflussung von Rechnungslegungsstandards und Ausgaben für Lobbying beim Kongress. Sie zeigen eine signifikante Korrelation zwischen Lobbyingausgaben und Anreizen zur Beeinflussung dreier aktueller Standardentwürfe.…”

Section: Politisches Lobbyingunclassified

Lobbying and accounting standard setting. A literature survey

Königsgruber

2009

Z Betriebswirtsch

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Zusammenfassung: Im angelsächsischen Raum existiert eine Vielzahl von Studien zum Thema Beeinflussung der Rechnungslegungsstandardsetzung durch Lobbying. Der vorliegende Beitrag bietet einen Überblick und diskutiert die Übertragbarkeit dieser Studien auf die Situation in der Europäi-schen Union nach Inkrafttreten der IAS-Verordnung. Ökonomische Gründe für den Wunsch nach Beeinflussung ergeben sich aus Kapitalmarkt reaktionen auf die Rechnungslegung, Entlohnungsund Schuldverträgen, sowie aus politischen Kosten hoher ausgewiesener Gewinne. Die Ergebnisse zeigen, dass in erster Linie sehr große Unternehmen Lobbying bei der Rechnungslegungsstandardsetzung betreiben, die Bilanzerstellerinteressen vertreten. Bilanznutzer, wie etwa Finanzanalysten etc., betreiben kaum Lobbying. Aktuelle Forschungsgebiete innerhalb dieses Themenkomplexes sind politisches Lobbying bei der Rechnungslegungsstandardsetzung sowie die Auswirkungen unterschiedlicher institutioneller Kontexte der Anwendung von Standards auf Anreize zum Lobbying bei einem internationalen Standardsetzer. Schlüsselwörter: Lobbying · Rechnungslegungsstandards · Standardsetzung · Survey JEL Classification: G18 · M48

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How does accounting fit into a firm’s political strategy?

Cited by 18 publications

References 46 publications

Financial constraints and political catering disclosures of non‐state‐owned firms: Evidence from textual analysis

Financial constraints and political catering disclosures of non‐state‐owned firms: Evidence from textual analysis

Due Process in Financial Accounting

Lobbying and accounting standard setting. A literature survey

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