Financial Reporting Regulation: Intended and Unintended Consequences

10.6504/JOM.2007.24.04.01

William Kinney；Rachel Schwartz

Financial reporting regulation ； Intended and unintended consequences ； Observability ； Investor protection ； Capital formation

管理學報

24卷4期（2007 / 08 / 01）

355 - 371

英文

Financial reporting regulation can improve allocation of resources and facilitate capital formation, but lack of observability may hide both intended and unintended consequences of regulatory design choices. In this paper, we explore some of the implications of regulated financial reporting with respect to the objectives of investor protection and capital formation, uncovering intended and unintended consequences. Our analysis yields three main results. First, investor perception of financial reporting quality, that reflects observable investment outcomes, varies with the state of the economy. Thus, in an economic bust, observable investment failures lower investor perception of financial reporting quality causing investors to demand regulatory intervention. Second, while more stringent implementation standards enhance investor protection, they hinder capital formation. Third, better measurement criteria can simultaneously enhance investor protection and capital formation, even if implementation is somewhat worse. These results have implications for evaluating accounting and auditing regulators' performance in balancing competing objectives and overseeing separate accounting and auditing standards setters.

1. AccountingWeb.com.(2004).PCAOB.Chairman warns more restatements could be coming.
2. American Institute of Certified Public Accountants(1993).The Expectation gap standards: Progress, implementation issues, research opportunities.New York, NY:AICPA.
3. Banner, S.(1997).What causes new securities regulation? 300 years of evidence.Washington University Law Review Quarterly,75(2),849-856.
4. Barton, J.,Waymire, G.(2004).Investor protection under unregulated financial reporting.Journal of Accounting and Economics,38,65-116.
5. Carmichael, D.(2004).The Accounting and auditing connection.Third Annual Financial Reporting Conference Baruch College (CUNY)
6. Carmichael, D.(2004).The PCAOB and the social responsibility of the independent auditor.Speech to the AAA Auditing Section Mid-year Meeting,Clearwater, FL:
7. Clarke, T.(2004).Cycles of crisis and regulation: The Enduring agency and stewardship problems of corporate governance.Corporate Governance: An International Review,12(2),153-161.
8. Dixit, A.(1996).The Making of economic policy.Cambridge, Mass.:MIT Press.
9. Financial Accounting Standards Board(1980).Statement of Financial Accounting Concepts No. 2: Qualitative Characteristics of Accounting Information.Norwalk, Connecticut:
10. Government Accountability Office(2002).SEC Operations.
11. Grant, J.(2006).Warning over US regulation.Financial Times(2006/05/22).
12. Grossman, G.,Helpman, E.(2001).Special interest politics.Cambridge, Mass.:MIT Press.
13. Grundfest, J.(2002).Punctuated equilibria in the evolution of United States securities regulation.Stanford Journal of Law, Business & Finance,8(1),1-8.
14. Jenkins, P.(2004).German groups rue US listings.Financial Times(2004/11/19).
15. The Washington Post
16. Kinney, W.(2000).Information quality assurance and internal control for management decision making.Boston:Irwin McGraw-Hill.
17. Laffont, Jean-Jacques(2000).Incentives and political economy.New York:Oxford University Press.
18. Leone, M.(2006).404 makes an IPO: Mission impossible.CFO.com..
19. Ligos, M.(2004).When going public may not be worth it.New York times(2004/06/03).
20. McCubbins, M.(1985).The legislative design of regulatory structure.American Journal of Political Science,29(4),721-748.
21. McDonough, W.(2004).Testimony concerning the Public Company Accounting Oversight Board.before the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, Committee on Financial Services, United States House of Representatives.
22. New York Stock Exchange and National Association of Securities Dealers. (NYSE/NASD)(1999).Report and Recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees.New York, NY:NYSE/NASD.
23. Public Companies Accounting Oversight Board(2004).Conforming Amendments to PCAOB Interim Standards Resulting from the Adoption of PCAOB Auditing Standard No. 2..
24. Ribstein, L.(2003).Bubble laws.Houston Law Review,40(1),77-97.
25. 2004-2009 Strategic Plan
26. Shaw, H.(2006).Is SOX driving small companies overseas?.CFO.com..
27. Stout, L.(1997).Technology, transactions costs, and investors welfare: Is a motley fool born every minute?.Washington University Law Review Quarterly,75(2),791-814.
28. Taub, S.(2004).Foreign firms invade IPO market, defying SOX fears.Compliance Week.
29. U.S. Congress(2002).An Act to Protect Investors by Improving the Accuracy and Reliability of Corporate Disclosures Made Pursuant to the Securities Laws, and for other Purposes, (Sarbanes-Oxley Act of 2002).
30. U.S. Congress.(2005).Due Process and Economic Competitiveness Restoration Act..
31. U.S. Congress.(2006).Competitive and Open Markets that Protect and Enhance the Treatment of Entrepreneurs (COMPETE) Act..
32. Walker, R.(2000).Speech to the Bond Market Association`s 6th Annual Legal and Compliance Seminar.Regulation vs. Enforcement in an On-Line World,25
33. Wilson, J.(1989).Bureaucracy: What government agencies do and why they do it.New York:Basic Books Classics.
34. TheStreet.com
35. Zeff, S.(2003).How the U.S. accounting profession got where it is today: Part II..Accounting Horizons,17(4),267-286.

1. 王瑋麟(2015)。一百萬元的微笑：戴爾‧卡內基《贏得友誼》與1930 年代美國成功手冊的歷史。成功大學歷史學系學位論文。2015。1-80。