The paper by Bertomeu and Magee (this issue) endogenizes accounting regulation by a
majority-seeking regulator and examines how the economic cycle affects mandatory
reporting quality. This discussion puts the paper in the broader context of a theory of
accounting regulation. Then, it focuses on crucial assumptions, including the exogenous
evolution of the economy, the role of market frictions, the modeling of reporting
quality, and the regulatory process and regulatory cycles, and provides suggestions for
future research.