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1 Federalism, Governance and Financial Reporting: Where Decentralisation is not Appropriate in Regulating Financial Accounting
| Content Provider | CiteSeerX |
|---|---|
| Author | Zimmermann, Jochen |
| Abstract | The European Union (EU) is constructed under the principle of subsidiarity. Political intervention should therefore happen primarily on a local level. With this in mind, we take a closer look at the policy field “financial reporting ” and attempt to answer the question whether the current accounting regulation in Europe can be justified with the theory of fiscal federalism. For our analysis we use criteria derived from comparative accounting literature: a) The member states ’ legal systems, b) the macro and micro-structure of European capital markets, c) taxation and d) financial stability (inflation). We conclude that local solutions in accounting are preferable for small and medium sized companies while big, listed firms rather need a central solution. This is due to locally different business environments in Europe on the one hand and an increasingly common capital market across the EU on the other hand. 1. |
| File Format | |
| Access Restriction | Open |
| Subject Keyword | Current Accounting Regulation Financial Reporting Listed Firm Common Capital Market Financial Stability Local Level Legal System Fiscal Federalism European Union Policy Field Financial Reporting Political Intervention Central Solution Comparative Accounting Literature Local Solution Different Business Environment European Capital Market Regulating Financial Accounting |
| Content Type | Text |
