Experimental Research on Standard-Setting Issues in Financial Reporting

Accounting standard setters value input from academic research as they deliberate potential new standards and evaluate the effect of existing standards. In this paper, we argue that experimental research is well-suited to producing insights to standard setters throughout the standard-setting process. In so doing, we address common questions that arise when researchers consider undertaking research on standard-setting issues. To facilitate future research in this domain, we compile the existing experimental research on standard-setting issues and classify it in categories that correspond to the Financial Accounting Standards Board’s technical agenda. We then use this taxonomy to identify examples of important questions that future experimental research could address. Finally, we draw on our own experiences to provide insights intended to help researchers conduct high-quality experimental research that is relevant to standard setters and publishable in top academic journals.