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A study by Watts and Zimmerman that explored the question of how corporate management responds to new standards proposed by the FASB was discussed in

A study by Watts and Zimmerman that explored the question of how corporate management responds to new standards proposed by the FASB was discussed in the book Accounting Theory Conceptual Issues in a Political and Economic Environment

by Authors: Harry I. Wolk; James L. Dodd; John J. Rozycki; Ninth Edition.

Answer the following questions related to that study.

a. What was the hypothesis of the study?

b. Describe the study and discuss its findings.

c. Was the study inductive or deductive? Explain.

d. Discuss the criticisms that have been directed at the study and the implications of those criticisms.

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