Journal article
Rules-Based Accounting Standards and Litigation
The Accounting review, Vol.87(4), pp.1247-1279
07/01/2012
DOI: 10.2308/accr-10274
Abstract
Some claim that rules-based accounting standards shield firms from litigation, while others argue that violations of detailed rules give plaintiffs a "roadmap" to successful litigation. We inform this debate by investigating whether rules-based standards are associated with the incidence and outcome of securities class action litigation. Overall, our results suggest that rules-based standards are associated with a lower incidence of litigation but are not associated with litigation outcomes. These results are of interest in the debate regarding the switch from a more rules-based U.S. GAAP to a more principles-based IFRS.
Details
- Title: Subtitle
- Rules-Based Accounting Standards and Litigation
- Creators
- Dain C. Donelson - The University of Texas at AustinJohn M. McInnis - The University of Texas at AustinRichard D. Mergenthaler - University of Iowa
- Resource Type
- Journal article
- Publication Details
- The Accounting review, Vol.87(4), pp.1247-1279
- Publisher
- Amer Accounting Assoc
- DOI
- 10.2308/accr-10274
- ISSN
- 0001-4826
- eISSN
- 1558-7967
- Number of pages
- 33
- Language
- English
- Date published
- 07/01/2012
- Academic Unit
- Accounting; Law Faculty
- Record Identifier
- 9984380545002771
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