Constituent lobbying towards the IASB: A multi-issue/multi-period analysis
Jorissen, Ann Lybaert, Nadine Orens, Raf Van der Tas, Leo #
Annual Congress European Accounting Association edition:30 location:Lisbon, Portugal date:25-27 April 2007
This paper tries to contribute to the research on lobbying by investigating the drivers of constituent lobbying towards the IASB by using a multi-issue/multi-period approach. The research data consist of 3423 comment letters sent to the IASB in the period 2002-2006(summer). The framework of analysis used in this study is the theoretical model developed by Elbannan and Mc Kinley (2006) combined with prior research results from the extant lobbying research. The results of this analysis provide evidence that the drivers of lobbying towards the IASB differ among the constituent parties. Users and stock exchanges engage significantly more in lobbying when disclosure issues are at stake. The accounting profession prefers to lobby significantly more in the early stages of the standard setting process. With regard to characteristics of companies which drive the lobbying behaviour the results reveal that larger companies engage significantly more in lobbying when earnings related issues are at stake. Smaller companies and more profitable companies lobby more when disclosure issues are involved. US companies on the other hand lobby towards the IASB in order to influence the FASB. Country characteristics (institutional as well as cultural values) do seem to influence companies whether or not to engage in lobbying. The results of the multi-period analysis reveal that the composition of the companies which lobbied against the IASC in the nineties, is no longer identical to the composition of companies lobbying in the 21st century.