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Accounting and Business Research
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Different approaches to company reporting regulation: How jurisdictions differ and why Christian Leuz
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J. Sondheimer Professor of International Economics, Finance and Accounting, School of Chicago Booth University of Organization, 5807 Southern region Woodlawn Opportunity, Chicago, ARIANNE, 60637вЂ“1610, UNITED STATES E-mail: b c g
Research affiliate at the Countrywide Bureau of Economic Research, Cambridge, MA European Corporate and business Governance Start, Brussels
Other of the Wharton Financial Institutions Centre, Philadelphia, PA Version of record 1st published: '04 Jan 2011.
To cite this article: Christian Leuz (2010): Different methods to corporate confirming regulation: How jurisdictions fluctuate and how come, Accounting and Business Study, 40: three or more, 229-256 To link to this information: http://dx.doi.org/10.1080/00014788.2010.9663398
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Accounting and Business Research, Vol. forty. No . several 2010 Foreign Accounting Policy Forum, pp. 229вЂ“256
Different ways to corporate credit reporting regulation: just how jurisdictions differ and why Christian Leuz*
Abstract вЂ” This conventional paper discusses variations in countries' approaches to reporting control and explores the reasons why they will exist inside the п¬Ѓrst place as well as how come they are prone to persist. We п¬Ѓrst delineate various regulatory choices and discuss the trade-offs linked to these options. I also provide a platform that can make clear differences in company reporting rules. Next, I actually present descriptive and stylised evidence on regulatory and institutional distinctions across countries. There are strong institutional groupings around the world. I discuss the particular clusters will likely persist provided the complementarities among countries' institutions. A crucial implication of this п¬Ѓnding is the fact reporting techniques are unlikely to are staying globally, inspite of efforts to harmonise confirming standards. Affluence of revealing practices is likewise unlikely as a result of persistent observance differences around the world. Given an ostensibly strong demand for concurrence in credit reporting practices for globally working п¬Ѓrms, I recommend a different way frontward that does not require convergence of reporting rules and enforcement across countries. The idea should be to create a вЂglobal player segment', in which affiliate п¬Ѓrms play by the same reporting rules and encounter the same enforcement. Such a segment could possibly be created and administered with a supra-national human body like IOSCO. Keywords: accounting; regulation; IFRS; US GAAP; SEC; standard-setting, mandatory disclosure; political economic system
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1 . Introduction and overview
Company reporting regulation has noticed substantial...
Sources: Vol. forty five, No . a few. 2010 Foreign Accounting Coverage Forum