Legitimacy of Accounting Regulation Processes : The Case of Swedish Municipalities and Regions

Sammanfattning: Accounting regulation, like any other institution, must be legitimate in order to be complied with. A key component for the legitimacy achievement is a legitimate regulation process. Consequently, the legitimacy of the accounting regulation process has real economic consequences for society as a whole. By building on a framework of prerequisites for a legitimate standard-setting process, the study develops a theoretical model for the analysis of an accounting regulation process’ legitimacy. The empirical setting of the study is distinct from the empirical setting of the literature included in the literature review, as it captures the regulation process of the new municipal accounting act in Sweden. By analyzing all the official documents corresponding to the regulation process of the new municipal accounting act, the study analyses the legitimacy achievement of the accounting regulation process. The results of the study showcase a heavily politically influenced regulation process, where there were deficiencies with the legitimacy achievement. Based on the results of the study, avenues for further research are suggested.