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  • Accepted_2019.03.15

    Rights statement: This is the peer reviewed version of the following article: Choi, S, Young, S, Zhang, X‐Y. Noncompliance with non‐accounting securities regulations and GAAP violations. J Bus Fin Acc. 2019; 46: 370– 399. https://doi.org/10.1111/jbfa.12377 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1111/jbfa.12377 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 709 KB, PDF document

    Embargo ends: 23/04/21

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Noncompliance with Non-Accounting Securities Regulations and GAAP Violations

Research output: Contribution to journalJournal article

Published

Standard

Noncompliance with Non-Accounting Securities Regulations and GAAP Violations. / Choi, Sun Hwa; Young, Steven Eric; Zhang, Xiu-Ye.

In: Journal of Business Finance and Accounting, Vol. 46, No. 3-4, 23.04.2019, p. 370-399.

Research output: Contribution to journalJournal article

Harvard

Choi, SH, Young, SE & Zhang, X-Y 2019, 'Noncompliance with Non-Accounting Securities Regulations and GAAP Violations', Journal of Business Finance and Accounting, vol. 46, no. 3-4, pp. 370-399.

APA

Vancouver

Choi SH, Young SE, Zhang X-Y. Noncompliance with Non-Accounting Securities Regulations and GAAP Violations. Journal of Business Finance and Accounting. 2019 Apr 23;46(3-4):370-399.

Author

Choi, Sun Hwa ; Young, Steven Eric ; Zhang, Xiu-Ye. / Noncompliance with Non-Accounting Securities Regulations and GAAP Violations. In: Journal of Business Finance and Accounting. 2019 ; Vol. 46, No. 3-4. pp. 370-399.

Bibtex

@article{4368d60a21a74890b4fcc2f3a65aafc1,
title = "Noncompliance with Non-Accounting Securities Regulations and GAAP Violations",
abstract = "Using enforcement actions by the Securities and Exchange Commission (SEC) as a proxy for noncompliance with securities regulations, we examine whether a firm’s compliance with non-accounting laws and regulations is associated with GAAP violations. We find that firms that violate securities regulations related to non-accounting issues are more likely to report accounting restatements than control firms that comply with securities regulations. We also find that the difference between the two groups is significant only for the periods subsequent to the start of the noncompliance period but not for periods prior to this date. Our results highlight the interrelation between the accounting and compliance systems, and suggest that managers who are non-compliant with non-accounting regulations are also more likely to be non-compliant with accounting rules.",
keywords = "compliance, GAAP violations, noncompliance with securities regulations, SEC's enforcement actions",
author = "Choi, {Sun Hwa} and Young, {Steven Eric} and Xiu-Ye Zhang",
note = "This is the peer reviewed version of the following article: Choi, S, Young, S, Zhang, X‐Y. Noncompliance with non‐accounting securities regulations and GAAP violations. J Bus Fin Acc. 2019; 46: 370– 399. https://doi.org/10.1111/jbfa.12377 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1111/jbfa.12377 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.",
year = "2019",
month = "4",
day = "23",
language = "English",
volume = "46",
pages = "370--399",
journal = "Journal of Business Finance and Accounting",
issn = "0306-686X",
publisher = "Wiley-Blackwell",
number = "3-4",

}

RIS

TY - JOUR

T1 - Noncompliance with Non-Accounting Securities Regulations and GAAP Violations

AU - Choi, Sun Hwa

AU - Young, Steven Eric

AU - Zhang, Xiu-Ye

N1 - This is the peer reviewed version of the following article: Choi, S, Young, S, Zhang, X‐Y. Noncompliance with non‐accounting securities regulations and GAAP violations. J Bus Fin Acc. 2019; 46: 370– 399. https://doi.org/10.1111/jbfa.12377 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1111/jbfa.12377 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

PY - 2019/4/23

Y1 - 2019/4/23

N2 - Using enforcement actions by the Securities and Exchange Commission (SEC) as a proxy for noncompliance with securities regulations, we examine whether a firm’s compliance with non-accounting laws and regulations is associated with GAAP violations. We find that firms that violate securities regulations related to non-accounting issues are more likely to report accounting restatements than control firms that comply with securities regulations. We also find that the difference between the two groups is significant only for the periods subsequent to the start of the noncompliance period but not for periods prior to this date. Our results highlight the interrelation between the accounting and compliance systems, and suggest that managers who are non-compliant with non-accounting regulations are also more likely to be non-compliant with accounting rules.

AB - Using enforcement actions by the Securities and Exchange Commission (SEC) as a proxy for noncompliance with securities regulations, we examine whether a firm’s compliance with non-accounting laws and regulations is associated with GAAP violations. We find that firms that violate securities regulations related to non-accounting issues are more likely to report accounting restatements than control firms that comply with securities regulations. We also find that the difference between the two groups is significant only for the periods subsequent to the start of the noncompliance period but not for periods prior to this date. Our results highlight the interrelation between the accounting and compliance systems, and suggest that managers who are non-compliant with non-accounting regulations are also more likely to be non-compliant with accounting rules.

KW - compliance

KW - GAAP violations

KW - noncompliance with securities regulations

KW - SEC's enforcement actions

M3 - Journal article

VL - 46

SP - 370

EP - 399

JO - Journal of Business Finance and Accounting

JF - Journal of Business Finance and Accounting

SN - 0306-686X

IS - 3-4

ER -