Title
GAAP as a symbol of legitimacy: New York State's decision to adopt generally accepted accounting principles
Publication Date
1-1-1992
Abstract
In this paper, we draw on economic and sociological theories in order to explain public sector incentives to adopt generally accepted accounting principles (GAAP), using the state of New York's decision to adopt GAAP for external financial reporting. We argue that the state's decision to adopt GAAP was an attempt to regain legitimacy for the state's financial management practices. Institutional interests demanding New York use GAAP were part of the sociological phenomenon called institutional isomorphism. Power relations and organizational politics related to the state's budgetary process also significantly influenced the state's decision to adopt GAAP. However, although professional élites made strong statements that GAAP adoption would improve the state's financial management practices, we found no compelling evidence that producing GAAP financial information has significantly altered the state's financial management practices. © 1992.
Publication Title
Accounting, Organizations and Society
Disciplinary Repository
SSRN
Volume
17
Issue
7
First Page
613
Last Page
643
DOI
10.1016/0361-3682(92)90016-L
Open Access Status
OA Disciplinary Repository
Recommended Citation
Carpenter, Vivian L. and Feroz, Ehsan H., "GAAP as a symbol of legitimacy: New York State's decision to adopt generally accepted accounting principles" (1992). Business Publications. 165.
https://digitalcommons.tacoma.uw.edu/business_pub/165
Source Full-text URL
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1181942
