Abstract

http://ssrn.com/abstract=1531782
 
 

References (31)



 
 

Citations (4)



 


 



Rules-Based Accounting Standards and Litigation


Dain C. Donelson


University of Texas at Austin - McCombs School of Business

John M. McInnis


University of Texas at Austin - Department of Accounting

Richard Mergenthaler Jr.


University of Iowa - Henry B. Tippie College of Business

February 9, 2012

Accounting Review, Forthcoming
McCombs Research Paper Series No. ACC-06-10

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 of securities class action litigation. Overall, our results suggest that rules-based accounting standards are associated with a lower incidence of litigation. 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.

Number of Pages in PDF File: 61

Keywords: Securities litigation, safe harbor, rules-based standards, principles-based standards

JEL Classification: K22, K41, M41

working papers series





Download This Paper

Date posted: January 5, 2010 ; Last revised: February 11, 2012

Suggested Citation

Donelson, Dain C. and McInnis, John M. and Mergenthaler, Richard, Rules-Based Accounting Standards and Litigation (February 9, 2012). Accounting Review, Forthcoming; McCombs Research Paper Series No. ACC-06-10. Available at SSRN: http://ssrn.com/abstract=1531782 or http://dx.doi.org/10.2139/ssrn.1531782

Contact Information

Dain C. Donelson
University of Texas at Austin - McCombs School of Business ( email )
Austin, TX 78712
United States
512-232-3733 (Phone)
John M. McInnis (Contact Author)
University of Texas at Austin - Department of Accounting ( email )
Austin, TX 78712
United States
512-232-6791 (Phone)
Richard Dean Mergenthaler Jr.
University of Iowa - Henry B. Tippie College of Business ( email )
108 Pappajohn Business Building
Iowa City, IA 52242-1000
United States
319-335-0848 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 3,607
Downloads: 819
Download Rank: 15,831
References:  31
Citations:  4

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.312 seconds