Governance, markets and power: the political economy of accounting reform in Indonesia

Abstract

Over the past two and a half decades, increases in the international mobility of financial capital have generated pressures for the international harmonisation of financial sector regulations and practices. As finance capital has become increasingly mobile, controllers of financial capital have sought harmonisation of these regulations and practices in order to facilitate access to and exit from foreign markets and thereby reduce the risk and increase the profits associated with foreign investments. With enhanced mobility, controllers of financial capital have been able to threaten states that they will relocate their capital to alternative jurisdictions if they do not comply with demands fo..