Stakeholder Engagement and Effective Standard Setting

Abstract

Successful standard-setting outcomes require some level of acceptance by diverse stakeholder groups. This study examines the evolution of FASB due process institutions since Enron, which have the potential to engender stakeholder acceptance. The prior literature on accounting standard-setting outcomes often focuses on the effects of individuals, organizations, or established due process institutions. Our study highlights the critical role played by recent due process institutions such as enhanced advisory groups, transition resource groups, field tests, and post-implementation reviews in contemporary standard-setting activity. Advisory groups, in particular, shift the balance of power within standard-setting to give a stronger voice to specific stakeholders (e.g., investors, not-for-profits, and private companies) and sometimes provide a recruiting network for future FASB members. We synthesize the growing importance these due process institutions have for effective standard-setting outcomes with the academic literature to identify areas for future research.

Corporate governance and stakeholder engagement in Nigerian enterprises: A review of current practices and future directions

“…These enterprises play a crucial role in driving economic growth, creating employment opportunities, and contributing to national development initiatives (Ilugbusi et al, 2020).. However, the effectiveness of these enterprises in fulfilling their roles is heavily influenced by the quality of their corporate governance practices and the extent of their engagement with stakeholders (Convery, 2022). Corporate governance encompasses the structures, processes, and mechanisms by which corporations are directed and controlled.…”