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In this study, the focus is on the adoption of Generally Accepted Accounting Principles ( GAAP ) by state governments, exploring five organizational factors influencing

In this study, the focus is on the adoption of Generally Accepted Accounting Principles
(
GAAP
)
by state governments, exploring five organizational factors influencing this process. The factors include the participation of key administrative accounting
/
auditing personnel in professional organizations, dependency on credit markets, potential alterations in power relations of elected officials, organizational imprinting, and changes in elected political leadership. The study identifies normative and coercive isomorphic pressures exerted by the federal government, professional accounting associations, and credit markets on state governments post
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1
9
7
5
.
While the possibility of mimetic isomorphic pressures is acknowledged, the study doesn't find compelling evidence for its significant impact. Key accounting bureaucrats in New York, Michigan, Ohio, and Delaware adopted different strategic responses to institutional pressures, such as compromise, defy, and manipulate. The "manipulate" strategy, involving purposeful co
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optation of institutional pressures, is identified as more effective in resisting change. The study suggests future research could explore Oliver's strategic response model rigorously and extend governmental accounting literature by incorporating institutional variables in statistical models. The prediction is made that all state governments in the USA will eventually adopt GAAP due to potent institutional pressures, particularly coercive and normative isomorphic forces, viewing GAAP as a symbol of legitimacy in the public sector.
Reflect on your insights and perspectives from the reading in a brief memo. How did this article enhance your understanding of the concepts discussed this week? Do you have any outstanding questions about concepts from this unit that were not addressed in the study materials? What has captured your attention in this reading? What were your key takeaways? Try to focus your response on the application of which guidance drove the decision
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making of the government officials described in the article. Make sure no AI is involved.

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