Corporate Demands and Changes in GPLA

This study suggests looking at the specific changes in the FASB Exposure Drafts (rather than simply regressing constituent preferences on the Statements of Financial Accounting Standards) as an alternative approach to existing lobbying studies. It stipulated relationships between the constituent demands for changes in the General Price Level Adjustment (GPLA) Accounting Exposure Drafts and such firm specific characteristics as the firm size, industry group size, level of competition, and return on investment. The empirical evidence indicates that large firms are more likely to demand changes from the FASB. Concentrated industry groups earning high returns on investments are less likely to demand changes from FASB because of political costs considerations