Abstract
This article examines the Private Finance Initiative (PFI) accounting standard setting process from an institutional theory perspective. It identifies three forms of institutional pressures and examines their impact on the PFI standard setting process. 'Coercive' pressure, exerted by the Treasury, and 'normative' pressure, exerted by the accounting profession, were influential in shaping respondents' comments on the PFI accounting Exposure Draft (ED). It is argued that the views of the accounting profession seem to have prevailed in the PFI standard setting process. This might stem from its institutional legitimacy and close ties with the Accounting Standards Board (ASB). In line with its broader policy objective of adopting private sector business practices in the public sector, the Treasury has eventually 'acquiesced' to the final PFI accounting standard issued by the ASB.
| Original language | English |
|---|---|
| Pages (from-to) | 69-94 |
| Number of pages | 26 |
| Journal | Public Management Review |
| Volume | 7 |
| Issue number | 1 |
| DOIs | |
| State | Published - Mar 2005 |
| Externally published | Yes |
Bibliographical note
Funding Information:Trade associations, whose members are mostly from the private sector, generally disagreed (71%) with the ASB’s ED. Only the Association of British Insurers (ABI), representing the UK’s insurance industry, and the Institutional Fund Managers’ Association (IFMA), representing the UK’s fund management companies, supported the ASB.
Keywords
- ASB
- Accounting standard setting
- Institutional theory
- Private finance initiative
- Treasury
ASJC Scopus subject areas
- Management Information Systems
- Management of Technology and Innovation