The role of legal, regulatory and political reforms and institutions in influencing accounting and financial outcomes

The purpose of this editorial is to provide a summary of how legal, regulatory or political changes or innovations impact accounting or financial outcomes. The intersection of legal, regulatory, and political environments with accounting and financial outcomes is a critical area of study in the field of accounting. Legal frameworks, regulatory bodies, and political decisions create the environment in which financial reporting and accounting practices are developed and enforced. This editorial summarises and discusses five papers that have been included in this special section. A review of the outcomes of such reforms or innovations in these papers provides direct evidence of the effectiveness of policy, which can provide useful and relevant input for any further planned innovations.