Law and Reporting Compliance Confidence

16 Pages Posted: 29 Dec 2016

See all articles by Kam C. Chan

Kam C. Chan

Pace University

Barbara R. Farrell

Pace University - Lubin School of Business

Patricia Healy

Pace University

Annie Wong

Western Connecticut State University

Date Written: December 27, 2016

Abstract

This study investigates the relationship between investor protection and the reporting compliance confidence in 24 countries, reported in an EY’s survey. In particular, we examine whether differences in investor protection across countries are related to confidence in reporting compliance, reporting complexity in terms of number of reporting standards, and number of reports issued. The results suggest that firms in countries with stronger investor rights have more reporting standards to comply with, and that these firms also have an increase in reporting demand from stakeholders as compared to firms in countries with weaker investor rights. We provide empirical evidence that the strength of investor rights has a significant effect on reporting quality and practices, whereas the strength of legal enforcement does not have the same effect.

Keywords: Investor protection, shareholder rights, legal enforcement, reporting compliance

JEL Classification: M41

Suggested Citation

Chan, Kam C. and Farrell, Barbara R. and Healy, Patricia and Wong, Annie, Law and Reporting Compliance Confidence (December 27, 2016). Journal of Accounting, Ethics and Public Policy, Vol. 17, No. 4, 2016; Pace University Accounting Research Paper No. 2016/20. Available at SSRN: https://ssrn.com/abstract=2890383

Kam C. Chan (Contact Author)

Pace University ( email )

Lubin School of Business
Pleasantville, NY 10570
United States

Barbara R. Farrell

Pace University - Lubin School of Business ( email )

861 Bedford Road
Goldstein Center
Pleasantville, NY 10570
United States

Patricia Healy

Pace University ( email )

860 Bedford rd
Pleasantville, NY 10570
United States
9147733667 (Phone)
9147733667 (Fax)

Annie Wong

Western Connecticut State University ( email )

United States

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