The Economics and Politics of Accounting International Perspectives on Research Trends, Policy, and Practice

by Leuz, Christian; Pfaff, Dieter; Hopwood, Anthony

• ISBN13: 9780199260621
• ISBN10: 0199260621
• eBook ISBN(s): 9780191536830
• Format: Hardcover
• Copyright: 2004-05-20
• Publisher: Oxford University Press
• More Book Details

Summary

Accounting and the role of Accountants has permeated the modern societies. For the most part, we have accepted the impartiality and objectivity of accounting and not recognized how accounting systems are embedded in a country's economic and legal framework, much of which is in turn shaped by political processes. This web of interactions results in complex economic and political questions which require accounting researchers to focus on several related trends: information economics, regulatory economics, sociology and political science. Althouugh considerable progress has been made in the field of accounting, many fundamental questions are still subject to debate. In this book, leading international scholars address a number of important questions about the role of accounting in society.

Table of Contents

List of Figures	xx
List of Tables	xxi
List of Contributors	xxiii
Introduction and Overview	xxv
Christian Leuz, Dieter Pfaff; and Anthony Hopwood
Part I. On the Economics and Roles of Accounting	1	(144)
1 Roles of Financial Accounting: Equity Valuation	3	(76)
1.1 Accounting and Economics: What We Learn from Analytical Models in Financial Accounting and Reporting	5	(27)
Alfred Wagenhofer
1.2 Aspects of the Future in Accounting: The Use of Market Prices and "Fair Values" in Financial Reports	32	(26)
Michael Bromwich
1.3 The Limitations of Financial Reporting	58	(21)
Wolfgang Ballwieser
2 Roles of Financial Accounting: Performance Measurement and Corporate Governance	79	(66)
2.1 Value-Based Management and Performance Measures: Cash Flow versus Accrual Accounting	81	(22)
Dieter Pfaff
2.2 Corporate Governance and Financial Reporting at Daimler-Benz (DaimlerChrysler) AG: From a "Stakeholder" toward a "Shareholder Value" Model	103	(44)
Ray Ball
Part II. On the Regulation and Enforcement of Accounting	145	(120)
3 Disclosure Regulation	147	(52)
3.1 Policy Implications from the Theory-Based Literature on Disclosure	149	(15)
Robert E. Verrecchia
3.2 Proprietary versus Nonproprietary Disclosures: Evidence from Germany	164	(35)
Christian Leuz
4 Enforcement of Accounting Standards	199	(66)
4.1 New Accounting for Goodwill: Application of American Criteria from a German Perspective	201	(17)
Walther Busse von Colbe
4.2 Compliance with German and International Accounting Standards in Germany: Evidence from Cash Flow Statements	218	(21)
Günther Gebhardt and Aaron Heilmann
4.3 Audit Regulation, Audit Quality, and Audit Research in the Post-Enron Era: An Analysis of Nonaudit Services	239	(28)
Ralf Ewert
Part III. On the Politics and Standard-Setting of Accounting	265	(128)
5 The Role of Accounting in Society and Constituent Lobbying	267	(80)
5.1 The Politics of Accounting: A Framework	269	(16)
Dieter Ordelheide
5.2 Constituent Lobbying and Its Impact on the Development of Financial Reporting Regulations: Evidence from Germany	285	(32)
Stuart McLeay, Dieter Ordelheide, and Steven Young
5.3 Drafting Accounting Law: An Analysis of Institutionalized Interest Representation	317	(30)
Stuart McLeay and Doris Merkl
6 Standard-Setting Processes and International Accounting Standards	347	(46)
6.1 From Accounting Directives to International Accounting Standards	349	(27)
Karel van Hulle
6.2 Academics in the Accounting Policy Process: England and Germany Compared	376	(17)
Michael Power
Index	393