Rules-Based Accounting Standards and Litigation

Donelson, Dain C. and McInnis, John M and Mergenthaler, Richard D,(2012), Rules-Based Accounting Standards and Litigation. , THE ACCOUNTING REVIEW, UNSPECIFIED

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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.
Keywords : securities litigation; safe harbor; rules-based standards; principles-based standards., UNSPECIFIED
Journal or Publication Title: THE ACCOUNTING REVIEW
Volume: 87
Number: 4
Item Type: Article
Subjects: Akuntansi
Depositing User: Eriana Ringgowati
Date Deposited: 20 Dec 2019 04:03
Last Modified: 20 Dec 2019 04:03

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