Purpose - To discuss the factors which make companies resist US accounting standards proposed by the FASB (Financial Accounting Standards Board).
Design/methodology/approach - Explains the FASB's standard setting process and reviews previous relevant research to develop 12 research propositions on the variables relating to the standards, the corporations and their industries which stimulate companies to resist FASB standards. Suggests how these might be tested.
Findings - Believes corporations are more likely to resist standards which increase uncertainty, have high information processing demands, require deviation from accepted practice and/or threaten the company's ability to acquire resources. Resistance is more likely from companies dependent on external stakeholders who oppose a standard, those with power over stakeholders which the FASB depends on, large companies and those with a history of opposition. Companies which are in concentrated industries, likely to suffer a negative impact on performance criteria valued by stakeholders, less regulated and/or rapidly growing are also more likely to resist standards seen as detrimental.
Research limitations/implications - Calls for empirical research to test this theoretical framework and offers guidelines for conducting it.
Practical implications - Identifies situations in which regulators might meet resistance and suggests some ways to reduce it.
Originality/value - Puts forward a wide range of variables which can affect corporate resistance to FASB standards.