The Accounting Review Vol. 87 No. 4 2012
Rules-Based Accounting Standards and Litigation
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.
- DOI
- 10.2308/accr-10274
- Volume
- 87
- Issue
- 4
- Pages
- 1247-1279
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref