Why do politicians intervene in accounting regulation? The role of ideology and special interests

TRR 266 researchers Jannis Bischof and Holger Daske, together with Christoph Sextroh, analyzed public statements of U.S. Congress members to determine the influence of politicians on accounting regulation. They found that almost one-third of the politicians were actively involved in the nitty-gritty details of accounting regulation. More importantly, when trying to answer the question of why these politicians intervened, the research team was able to identify two main groups: one was motivated by their ideology, the other by their strong connections with industry. The first group intervenes irregularly – mostly when the topic is ‘hot’ – whereas the latter is consistently involved. Bischof and Daske explain this political process of standard-setting

Read the full blog post on the website of TRR 266 Accounting for Transparency.

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