The third essay, written with Karthik Ramanna, investigates the effect of standard setters in standard setting. We examine how certain professional and political characteristics of FASB members and SEC commissioners predict the accounting qreliabilityq and qrelevanceq of proposed standards. Notably, we find FASB members with backgrounds in financial services to be more likely to propose standards that decrease qreliabilityq and increase qrelevance, q partly due to their tendency to propose fair-value methods. We find opposite results for FASB members affiliated with the Democratic Party, although only when financial-services background is excluded as an independent variable.The third essay, written with Karthik Ramanna, investigates the effect of standard setters in standard setting.
|Title||:||Essays in Financial Accounting Standard Setting|
|Author||:||Abigail McIntosh Allen, Harvard Business School|