Crisis and organizational change : IASB’s response to the financial crisis
Purpose: The purpose of this study is to examine the International Accounting Standards Board (IASB)’s response to criticism and political pressure at the time of the global financial crisis through the lens of legitimacy theory. Design/methodology/approach: This study constructs a thick description about a causal mechanism between social crisis and organizational change using a process-tracing approach that combines a historical narrative and a theoretical consideration. Findings: The IASB faced criticism of its accounting standards for financial instruments and its governance structure during the financial crisis. This criticism represented the crises of pragmatic and cultural legitimacy. Facing these legitimacy crises, the IASB adopted such legitimation strategies as normalization and restructuring to repair its legitimacy. Additionally, in these repairing processes, the IASB, as a bonus, became institutionally embedded itself in the global political arena and succeeded to strengthen its legitimacy. Originality/value: The study suggests that the financial crisis had a significant impact on the standardization of transnational accounting. Indeed, the crisis was an important turning point of the IASB’s work on revising its accounting standards to reduce complexity and altering its Constitution. Moreover, the authors bridge the gaps in the literature on accounting and legitimacy by examining how the IASB used particular legitimacy repair strategies when facing its legitimacy crises
Year of publication: |
2019
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Authors: | Kusano, Masaki ; Sanada, Masatsugu |
Published in: |
Journal of Accounting & Organizational Change. - Emerald, ISSN 1832-5912, ZDB-ID 2218013-8. - Vol. 15.2019, 2 (03.06.), p. 278-301
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Publisher: |
Emerald |
Saved in:
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