Several studies document ex-post effects of accounting standards on firms’ business activities – such as reduced lease financing, R&D, or hedging. Are such ‘real effects’ unforeseen by accounting standard setters (as is sometimes assumed), or might they even be intended – to promote...

This paper studies real effects arguments – claims that accounting standards causally affect preparers’ actions in the real economy – in the context of IFRS standard setting. To identify such real effects arguments, we apply semi-automated content analysis to the 426 due process documents...