Multiple regulators and accounting restatements: Evidence from Canada

Brian M. Burnett, Daphne Hart, Bjorn N. Jorgensen, Gregory W. Martin

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)


Canada delegates securities regulation to the provincial securities regulators where each Canadian firm is headquartered. Legal origin theories predict weaker enforcement due to less emphasis on accounting in civil law jurisdictions, like Quebec. Consistent with these theories, we find fewer restatements for non-U.S. cross-listed firms headquartered in Quebec relative to the rest of Canada (ROC), which has a common law legal origin. When subject to two securities regulators—a Canadian provincial securities regulator and the Securities and Exchange Commission—Quebec firms cross-listed in the U.S. restate at a rate similar to the ROC. Finally, we document that Canadian firms restate less frequently after adopting IFRS, consistent with more principles-based standards being more difficult to enforce ex post than more rules-based standards.

Original languageEnglish
Peer-reviewed scientific journalJournal of International Accounting Research
Issue number2
Pages (from-to)3-29
Number of pages27
Publication statusPublished - 01.06.2019
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • Cross-list
  • IFRS
  • Legal origin
  • Regulatory coordination
  • Restatements


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