IDEAS home Printed from https://ideas.repec.org/a/eee/bracre/v36y2004i4p441-453.html
   My bibliography  Save this article

Corporate lobbying in the UK: an analysis of attitudes towards the ASB's 1995 deferred taxation proposals

Author

Listed:
  • Georgiou, George
  • Roberts, Clare B.

Abstract

This paper models corporate lobbying behaviour with respect to the ASB's 1995 discussion paper on deferred taxation. The study makes improvements to the methodology applied in prior studies. It expands the definition of lobbying beyond the submission of comment letters. It extends the analysis to control for past lobbying behaviour. It uses multinomial logistic regression to consider those companies lobbying in favour, those lobbying against, and those that did not lobby. The findings suggest that size and past lobbying behaviour are key determinants of the decision to lobby. In addition, companies that lobbied against the proposals were more likely to have debt covenants than were those that lobbied in favour. Debt covenants, however, did not explain the difference between non-lobbyists and lobbyists against. Companies that lobbied in favour were more likely to experience incentive compensation effects than were those that lobbied against. There was some evidence of the influence of US listing.

Suggested Citation

  • Georgiou, George & Roberts, Clare B., 2004. "Corporate lobbying in the UK: an analysis of attitudes towards the ASB's 1995 deferred taxation proposals," The British Accounting Review, Elsevier, vol. 36(4), pages 441-453.
    • Handle: RePEc:eee:bracre:v:36:y:2004:i:4:p:441-453
    DOI: 10.1016/j.bar.2004.06.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0890838904000484
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.bar.2004.06.006?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. George Georgiou, 2002. "Corporate non-participation in the ASB standard-setting process," European Accounting Review, Taylor & Francis Journals, vol. 11(4), pages 699-722.
    2. Francis, Jere R., 1987. "Lobbying against proposed accounting standards: The case of employers' pension accounting," Journal of Accounting and Public Policy, Elsevier, vol. 6(1), pages 35-57.
    3. Noel Addy & Edward P. Swanson, 1994. "Were Lobbyists on Income Tax Accounting Influenced by Income Strategies?," Contemporary Accounting Research, John Wiley & Sons, vol. 11(1), pages 497-514, June.
    4. Dechow, PM & Hutton, AP & Sloan, RG, 1996. "Economic consequences of accounting for stock-based compensation," Journal of Accounting Research, Wiley Blackwell, vol. 34, pages 1-20.
    5. Berger, Allen N. & Dai, Qinglei & Ongena, Steven & Smith, David C., 2003. "To what extent will the banking industry be globalized? A study of bank nationality and reach in 20 European nations," Journal of Banking & Finance, Elsevier, vol. 27(3), pages 383-415, March.
    6. Nancy Thorley Hill & Sandra Waller Shelton & Kevin T. Stevens, 2002. "Corporate Lobbying Behaviour on Accounting for Stock‐Based Compensation: Venue and Format Choices," Abacus, Accounting Foundation, University of Sydney, vol. 38(1), pages 78-90, February.
    7. MacArthur, John B., 1996. "An investigation into the influence of cultural factors in the international lobbying of the International Accounting Standards Committee: The case of E32, Comparability of Financial Statements," The International Journal of Accounting, Elsevier, vol. 31(2), pages 213-237.
    8. Howorth, Carole & Peel, Michael J & Wilson, Nicholas, 2003. "An Examination of the Factors Associated with Bank Switching in the U.K. Small Firm Sector," Small Business Economics, Springer, vol. 20(4), pages 305-317, June.
    9. 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.
    10. Ronan G. Powell, 1997. "Modelling Takeover Likelihood," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(7‐8), pages 1009-1030, September.
    11. Sutton, Timothy G., 1988. "The proposed introduction of current cost accounting in the U.K. : Determinants of corporate preference," Journal of Accounting and Economics, Elsevier, vol. 10(2), pages 127-149, April.
    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. Unsal, Omer & Kabir Hassan, M. & Zirek, Duygu, 2017. "Corporate lobbying and labor relations: Evidence from employee-level litigations," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 411-441.
    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. Beaumont, Stacey & Clarkson, Peter & Tutticci, Irene, 2018. "Identifying lobbying strategies: An analysis of public responses to the Productivity Commission Inquiry into executive remuneration in Australia," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 288-306.
    4. 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).
    5. Lockhart, George Brandon & Unlu, Emre, 2018. "Does corporate lobbying activity provide useful information to credit markets?," Journal of Corporate Finance, Elsevier, vol. 50(C), pages 128-157.
    6. 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.
    7. 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.

    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. 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.
    2. 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.
    3. George Georgiou, 2002. "Corporate non-participation in the ASB standard-setting process," European Accounting Review, Taylor & Francis Journals, vol. 11(4), pages 699-722.
    4. Koh, Wei Chern, 2011. "What drives firms' decisions to lobby and determinants of their lobbying positions: Evidence from firms' comment letter submissions during FASB's stock option expensing proposal in 2004," The International Journal of Accounting, Elsevier, vol. 46(1), pages 1-24, March.
    5. Giner Inchausti, Begoña, 2014. "Instituciones e intereses en conflicto ante la regulación contable internacional: el caso del sector financiero español," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 17(2), pages 143-152.
    6. 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.
    7. 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.
    8. Abigail Allen & Reining C. Petacchi, 2023. "Preparer Opposition and Strategic Implementation of Governmental Accounting Standards: Evidence from Public Pension Accounting Reform," Management Science, INFORMS, vol. 69(7), pages 4259-4282, July.
    9. 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.
    10. 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.
    11. Brandon Gipper & Brett J Lombardi & Douglas J Skinner, 2013. "The politics of accounting standard-setting: A review of empirical research," Australian Journal of Management, Australian School of Business, vol. 38(3), pages 523-551, December.
    12. Huian Maria Carmen, 2013. "Analysis Of The Constituents’ Participation In The Development Of The 1st Phase Of Ifrs 9 Financial Instruments," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 209-216, February.
    13. Francesco De Luca & Jenice Prather-Kinsey, 2018. "Legitimacy theory may explain the failure of global adoption of IFRS: the case of Europe and the U.S," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(3), pages 501-534, September.
    14. Unsal, Omer & Kabir Hassan, M. & Zirek, Duygu, 2017. "Corporate lobbying and labor relations: Evidence from employee-level litigations," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 411-441.
    15. Sylvain Durocher, 2009. "The future of interpretive accounting research," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 6(3), pages 137-159, July.
    16. 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.
    17. Beaumont, Stacey & Clarkson, Peter & Tutticci, Irene, 2018. "Identifying lobbying strategies: An analysis of public responses to the Productivity Commission Inquiry into executive remuneration in Australia," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 288-306.
    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. Pranil Prasad & Parmod Chand, 2017. "The Changing Face of the Auditor's Report: Implications for Suppliers and Users of Financial Statements," Australian Accounting Review, CPA Australia, vol. 27(4), pages 348-367, December.
    20. Guerreiro, Marta Silva & Rodrigues, Lúcia Lima & Craig, Russell, 2012. "Voluntary adoption of International Financial Reporting Standards by large unlisted companies in Portugal – Institutional logics and strategic responses," Accounting, Organizations and Society, Elsevier, vol. 37(7), pages 482-499.

    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:eee:bracre:v:36:y:2004:i:4:p:441-453. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-british-accounting-review .

    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.