ABSTRACT

This chapter examines the interplay between general theories of regulation and histories of accounting regulation. It focuses on the contested interpretation of origin of the US Securities Acts 1933/34, and their impact on financial disclosure; topics that dominate the historical literature on accounting regulation. The chapter considers the impact of the common law, social norms and private regulatory initiatives on accounting regulation. It attempts to answer questions such as why regulations develop, who benefits from them, how they emerge from social practices and why they persist. Explanations for the emergence and persistence of and change in the institutions affecting market transactions can be clustered under Public interest theory, Regulatory capture theory, Corporatist theory; Negotiated order theories, and Cultural theories. In spite of lack of evidence of benefits of accounting regulation, the authors note the persistence and diffusion of regulations. The chapter concludes by identifying areas in which our understanding of accounting regulation can be advanced by a historical perspective.