AAA Spark Meeting of the Regions

Political Activity and the U.S. Accounting Profession: An Analysis of Political Contributions During the 2019–2020 Election Cycle

• In Event: Climate & Political Activity

Abstract

Political Action Committees (PACs) are a means for the accounting profession to participate in the political process and to develop and sustain political connections. In the U.S., the largest accounting firms have affiliated PACs to facilitate contributions to specific political candidates, political parties, and to other PACs. In this study, we extend prior work on political activity in the accounting profession by providing an updated examination of the political contributions by the PACs associated with the Big 4 firms and the AICPA during the 116th Congress (2019-2020). We also compare these findings with political contributions from individuals within the accounting profession. Our data analysis consists of three parts. First, we provide a descriptive analysis of the contributions to the accounting PACs (incoming funds) and where those donations are directed (outgoing funds). Second, we replicate the Thornburg and Roberts (2008) data model of PAC contributions with more recent data from the 116th Congress. Third, we conduct a descriptive analysis of the political contributions by two groups of accountants: 1) those that have self-identified as accountants; and 2) those that are employed by the top ten U.S. accounting firms. Overall, our findings indicate that accounting firms make strategic political contributions that may align with their private interests, but don’t perfectly align with determinants of political contributions by individuals within the profession. Our data and discoveries provide additional insights on political activity within the accounting profession, which help contextualize prior research and can motivate future work in this area.

Authors

• Kevin Hale, The University of North Carolina at Wilmington

• Lorraine S. Lee, The University of North Carolina at Wilmington