IDEAS home Printed from https://ideas.repec.org/a/taf/acceur/v13y2016i3p381-403.html
   My bibliography  Save this article

Lobbying and Audit Regulation in the EU

Author

Listed:
  • Marius Gros
  • Daniel Worret

Abstract

In this paper, we analyze comment letters submitted in response to the European Commission (EC) Green Paper on audit policy. We find that consistent with the theory of incentives and the presence of information asymmetries between rule-making bodies and interest groups, the highest participation within the consultation process came from auditors and preparers of financial statements. Additionally, our results suggest that these interest groups exhibit different strategic lobbying behaviors in terms of employing more self-referential arguments than other interest groups. Moreover, we provide evidence that self-referential argumentation strategies are more influential when expressing opposing views, whereas conceptually based argumentation strategies are more influential when expressing supporting views. We contribute to a more detailed understanding of the role that lobbyists and argumentation strategies played in the recent EU audit policy reform, and we infer that lobbying activities might have led the EC to moderate its proposals to obtain interest groups’ support.

Suggested Citation

  • Marius Gros & Daniel Worret, 2016. "Lobbying and Audit Regulation in the EU," Accounting in Europe, Taylor & Francis Journals, vol. 13(3), pages 381-403, September.
    • Handle: RePEc:taf:acceur:v:13:y:2016:i:3:p:381-403
    DOI: 10.1080/17449480.2016.1255343
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17449480.2016.1255343
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17449480.2016.1255343?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gero Holthoff & Florian Hoos & Barbara E. Weissenberger, 2015. "Are We Lost in Translation? The Impact of Using Translated IFRS on Decision-Making," Accounting in Europe, Taylor & Francis Journals, vol. 12(1), pages 107-125, June.
    2. Urska Kosi & Antonia Reither, 2014. "Determinants of Corporate Participation in the IFRS 4 (Insurance Contracts) Replacement Process," Accounting in Europe, Taylor & Francis Journals, vol. 11(1), pages 89-112, June.
    3. Jean-Jacques Laffont & Jean Tirole, 1991. "The Politics of Government Decision-Making: A Theory of Regulatory Capture," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1089-1127.
    4. Harding, Noel & Mckinnon, Jill, 1997. "User involvement in the standard-setting process: A research note on the congruence of accountant and user perceptions of decision usefulness," Accounting, Organizations and Society, Elsevier, vol. 22(1), pages 55-67, January.
    5. Robert K. Larson, 2007. "Constituent Participation and the IASB's International Financial Reporting Interpretations Committee," Accounting in Europe, Taylor & Francis Journals, vol. 4(2), pages 207-254, December.
    6. Durocher, Sylvain & Fortin, Anne & Cote, Louise, 2007. "Users' participation in the accounting standard-setting process: A theory-building study," Accounting, Organizations and Society, Elsevier, vol. 32(1-2), pages 29-59.
    7. Robert K. Larson & Paul J. Herz, 2013. "A Multi-Issue/Multi-Period Analysis of the Geographic Diversity of IASB Comment Letter Participation," Accounting in Europe, Taylor & Francis Journals, vol. 10(1), pages 99-151, June.
    8. Georgiou, George, 2010. "The IASB standard-setting process: Participation and perceptions of financial statement users," The British Accounting Review, Elsevier, vol. 42(2), pages 103-118.
    9. Corinna Ewelt-Knauer & Anna Gold & Christiane Pott, 2013. "Mandatory Audit Firm Rotation: A Review of Stakeholder Perspectives and Prior Research," Accounting in Europe, Taylor & Francis Journals, vol. 10(1), pages 27-41, June.
    10. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    11. Nicole V. S. Ratzinger-Sakel & Sophie Audousset-Coulier & Jaana Kettunen & Cédric Lesage, 2013. "Joint Audit: Issues and Challenges for Researchers and Policy-Makers," Accounting in Europe, Taylor & Francis Journals, vol. 10(2), pages 175-199, November.
    12. Puro, M, 1984. "Audit Firm Lobbying Before The Financial Accounting Standards Board - An Empirical-Study," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 624-646.
    13. Begoña Giner & Miguel Arce, 2012. "Lobbying on Accounting Standards: Evidence from IFRS 2 on Share-Based Payments," European Accounting Review, Taylor & Francis Journals, vol. 21(4), pages 655-691, December.
    14. Hoffmann, Sebastian & Zülch, Henning, 2014. "Lobbying on accounting standard setting in the parliamentary environment of Germany," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 709-723.
    15. Raf Orens & Ann Jorissen & Nadine Lybaert & Leo Van Der Tas, 2011. "Corporate Lobbying in Private Accounting Standard Setting: Does the IASB have to Reckon with National Differences?," Accounting in Europe, Taylor & Francis Journals, vol. 8(2), pages 211-234.
    16. Sutton, Timothy G., 1984. "Lobbying of accounting standard-setting bodies in the U.K. and the U.S.A.: A Downsian analysis," Accounting, Organizations and Society, Elsevier, vol. 9(1), pages 81-95, January.
    17. Brown, Pr, 1981. "A Descriptive Analysis Of Select Input Bases Of The Financial-Accounting-Standards-Board," Journal of Accounting Research, Wiley Blackwell, vol. 19(1), pages 232-246.
    18. McLeay, Stuart & Ordelheide, Dieter & Young, Steven, 2000. "Constituent lobbying and its impact on the development of financial reporting regulations: evidence from Germany," Accounting, Organizations and Society, Elsevier, vol. 25(1), pages 79-98, January.
    19. George Georgiou, 2004. "Corporate Lobbying on Accounting Standards: Methods, Timing and Perceived Effectiveness," Abacus, Accounting Foundation, University of Sydney, vol. 40(2), pages 219-237, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Downar, Benedikt & Ernstberger, Jürgen & Koch, Christopher, 2021. "Who makes partner in Big 4 audit firms? – Evidence from Germany," Accounting, Organizations and Society, Elsevier, vol. 91(C).
    2. Downar, Benedikt & Ernstberger, Jürgen & Koch, Christopher, 2021. "Determinants and consequences of auditor dyad formation at the top level of audit teams," Accounting, Organizations and Society, Elsevier, vol. 89(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bamber, Matthew & McMeeking, Kevin, 2016. "An examination of international accounting standard-setting due process and the implications for legitimacy," The British Accounting Review, Elsevier, vol. 48(1), pages 59-73.
    2. Urska Kosi & Antonia Reither, 2014. "Determinants of Corporate Participation in the IFRS 4 (Insurance Contracts) Replacement Process," Accounting in Europe, Taylor & Francis Journals, vol. 11(1), pages 89-112, June.
    3. Roland Königsgruber, 2013. "Expertise-based lobbying and accounting regulation," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 1009-1025, November.
    4. Molina Sánchez, Horacio & Bautista Mesa, Rafael, 2018. "La participación en el /Participation in the IASB Due Process," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 429-458, Mayo.
    5. Georgiou, George, 2010. "The IASB standard-setting process: Participation and perceptions of financial statement users," The British Accounting Review, Elsevier, vol. 42(2), pages 103-118.
    6. Igor Álvarez & José Calvo & Araceli Mora, 2014. "Involving academics in the accounting standard setting process: an application of the Delphi methodology to the assessment of IASB proposals," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(3), pages 765-791, August.
    7. Rey, Andrea & Maglio, Roberto & Rapone, Valerio, 2020. "Lobbying during IASB and FASB convergence due processes: Evidence from the IFRS 16 project on leases," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    8. Renata Stenka & Peter Taylor, 2010. "Setting UK standards on the concept of control: An analysis of lobbying behaviour," Accounting and Business Research, Taylor & Francis Journals, vol. 40(2), pages 109-130.
    9. Hodges, Ron & Mellett, Howard, 2012. "The U.K. private finance initiative: An accounting retrospective," The British Accounting Review, Elsevier, vol. 44(4), pages 235-247.
    10. Christoph Pelger & Nicole Spieß, 2017. "On the IASB’s construction of legitimacy – the case of the agenda consultation project," Accounting and Business Research, Taylor & Francis Journals, vol. 47(1), pages 64-90, January.
    11. Hervé Kohler & Anne Le Manh, 2014. "Etude Exploratoire De La Participation Au « Due Processus » De L'Iasb De L'Industrie Des Telecommunications, Dans Le Cadre Du Projet « Revenue Recognition »," Post-Print hal-01899618, HAL.
    12. Stenka, Renata & Jaworska, Sylvia, 2019. "The use of made-up users," Accounting, Organizations and Society, Elsevier, vol. 78(C).
    13. David Procházka, 2015. "Lobbying on the IASB Standards: An analysis of the Lobbyists’ Behaviour over Period 2006–2014," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 4(2), pages 129-143.
    14. Denis Cormier & Charlotte Beauchamp, 2016. "Le rôle des acteurs dans la normalisation comptable internationale : Le cas de la norme IFRS 9," Post-Print hal-01902328, HAL.
    15. Samindi Ishara Hewa & Rajni Mala & Jinhua Chen, 2020. "IASB's independence in the due process: an examination of interest groups’ influence on the development of IFRS 9," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(3), pages 2585-2615, September.
    16. Raf Orens & Ann Jorissen & Nadine Lybaert & Leo Van Der Tas, 2011. "Corporate Lobbying in Private Accounting Standard Setting: Does the IASB have to Reckon with National Differences?," Accounting in Europe, Taylor & Francis Journals, vol. 8(2), pages 211-234.
    17. Hughes, Susan B. & Larson, Robert K. & Sander, James F. & Xiques, Glenn, 2017. "Difficulties converging US GAAP and IFRS through joint projects: The case of business combinations," Advances in accounting, Elsevier, vol. 39(C), pages 1-20.
    18. Roland Königsgruber & Stefan Palan, 2015. "Earnings management and participation in accounting standard-setting," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 31-52, March.
    19. Kohler, Hervé & Pochet, Christine & Le Manh, Anne, 2021. "Auditors as intermediaries in the endogenization of an accounting standard: The case of IFRS 15 within the telecom industry," Accounting, Organizations and Society, Elsevier, vol. 91(C).
    20. Hervé Kohler & Christine Pochet & Anne Le Manh, 2021. "Auditors as intermediaries in the endogenization of an accounting standard: The case of IFRS 15 within the telecom industry," Post-Print hal-03337420, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acceur:v:13:y:2016:i:3:p:381-403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.