As the private standard setter taking charge of the international accounting standard-setting, the importance of the International Accounting Standards Board’s (IASB) legitimacy has been recognized, particularly in the European Parliament, policy papers, and academic literature. However, despite the crucial role of Mark C. Suchman’s, 1995 article in the research of private accounting standard setters’ legitimacy, few studies have reviewed the IASB’s legitimacy based on Suchman’s framework. Moreover, there exists a limited understanding of cognitive legitimacy and a misinterpretation of the various types of legitimacy in studies of IASB legitimacy. With the aims to improve the understanding of IASB legitimacy, especially cognitive legitimacy, this study conducts a systematic review of existing research on this subject (32 articles and 5 books) through the lens of Suchman’s theoretical framework. Our review reveals that most empirical research emphasizes due process and examines different forms of legitimacy in isolation. Furthermore, previous studies often focus on the IASB’s initial establishment, neglecting the impact of evolving institutional dynamics. Building on these observations, this study calls for enhancing construct clarity by analyzing the interaction between different forms of legitimacy, expanding the understanding of cognitive legitimacy through in-depth comparative and historical studies, and investigating the influence of institutional changes. By grounding this analysis in Suchman’s legitimacy theory, this study not only broadens the scope of inquiry into the IASB’s legitimacy but also provides valuable insights for the IASB and other transnational organizations in navigating complex and evolving environments.
