Institutional Logics in Global Accounting Standard Setting

The purpose of this paper is to examine the dynamics of organizational change and institutional logics in global accounting standard setting. In particular, with applying the institutional logics approach, I investigate what kind of changes were occur in the transformation of the IASC to the IASB and their theoretical implications, and the significance of the further organizational changes in the IASB after 2000. First, I inductively develop two ideal types of organizational-level competing logics in global accounting standards setting i.e., the representation and expertise logic. Then I discuss the consecutive revisions of the constitution and consequent organizational changes of the IASB from 2000 onward with using these two ideal types. Findings show that the IASB revised the constitution and further clarify its accountability to the G20 major economies as a quasi-world government; and enabled to avert its legitimacy crisis. This organizational change may also suggest the possible emergence of new logic in which re-blends democratic representation and/or personal expertise as sources of legitimacy and emphasizes accountability to the legitimacy-granting authority