Rules-Based Accounting Standards and Litigation
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 a...
Saved in:
Published in | The Accounting review Vol. 87; no. 4; pp. 1247 - 1279 |
---|---|
Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Sarasota
American Accounting Association
01.07.2012
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | 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. |
---|---|
Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0001-4826 1558-7967 |
DOI: | 10.2308/accr-10274 |