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An empirical analysis of the petroleum refining industry's participation in the FASB's standard-setting process: Working paper series--99-04

Tandy, Paulette R. and Wilburn, Nancy L. (1999) An empirical analysis of the petroleum refining industry's participation in the FASB's standard-setting process: Working paper series--99-04. Working Paper. NAU W.A. Franke College of Business.


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Despite the recognized importance of constituent input in the Financial Accounting Standards Board's (FASB's) standard-setting process, corporate participation has been limited. Results from prior research indicate that differences exist between the petroleum industry and other industries for lobbying behavior, accounting choices, and tax rates. This study explores further the participation of Fortune 500 petroleum refining corporations in the FASB's standard-setting process from 1973-1997. Results in this study indicate that while petroleum companies comprise only 6.6 percent of Fortune 500 companies, they submitted approximately 18 percent of all Fortune 500 comment letters on the 173 documents preceding FAS Nos. 1-133, with an average of 18.4 percent of petroleum companies participating per document. The level of petroleum industry participation is affected by the scope of the standard under consideration and the time period the document was issued. Substantive standards generate significantly more letters from petroleum companies than amendments or industry standards. However, industry standards in the period 1973-1977 attracted the highest level of petroleum refining industry participation driven by the oil and gas industry documents issued in that period. All of the individual petroleum refining companies that are listed on the Fortune 500 throughout the 25-year period submitted comment letters, ranging from nine to 94 letters. Compared to individual companies in other industries, petroleum companies participate much more frequently. This provides some evidence of greater benefits of participation by the petroleum refining industry which may be the result of greater government regulation than for other industries

Item Type: Monograph (Working Paper)
Publisher’s Statement: Copyright, where appropriate, is held by the author.
ID number or DOI: 99-04
Keywords: Working paper, accounting standards, lobbying, tax rates, petroluem companies
Subjects: H Social Sciences > HD Industries. Land use. Labor
NAU Depositing Author Academic Status: Faculty/Staff
Department/Unit: The W.A. Franke College of Business
Date Deposited: 19 Jan 2016 19:10
URI: http://openknowledge.nau.edu/id/eprint/1647

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