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dc.contributor.advisorKrishnan, Jayanthi
dc.contributor.advisorKrishnan, Jagan
dc.creatorLi, Mengtian
dc.date.accessioned2021-01-18T20:23:05Z
dc.date.available2021-01-18T20:23:05Z
dc.date.issued2020
dc.identifier.urihttp://hdl.handle.net/20.500.12613/4780
dc.description.abstractThis study examines the association between the extent of legal intensity in firms’ financial reports and their financial reporting quality. Firms’ financial reports contain embedded legal content arising from contracts and agreements underlying their operations. Accountants interpret the contract provisions and conditions to determine the timing and amounts recognized in financial reports. Legal content is technical and complex, creating a potential for misinterpretation and errors in accounting for transactions, thus adversely affecting financial reporting quality. Using legal tags in companies’ 10-K XBRL filings, I construct a measure of the legal intensity of financial reports. I document an inverse association between legal intensity of financial reports and financial reporting quality, proxied by accruals quality, analyst earnings forecast errors and dispersion, earnings informativeness, and accruals informativeness. The inverse association is driven by firm-specific legal content rather than common legal content. There is also some evidence that the inverse association is strengthened by high operational uncertainty and attenuated by accounting experts on the audit committee. Collectively, this study increases our understanding of challenges in translating legal content into financial reports and the benefit of audit committee accounting experts in this setting.
dc.format.extent108 pages
dc.language.isoeng
dc.publisherTemple University. Libraries
dc.relation.ispartofTheses and Dissertations
dc.rightsIN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available.
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectAccounting
dc.subjectAccounting experts
dc.subjectAudit committee
dc.subjectFirm-specificity
dc.subjectLegal contracts
dc.subjectXBRL
dc.titleLEGAL INTENSITY OF FINANCIAL REPORTS, CORPORATE GOVERNANCE, AND FINANCIAL REPORTING QUALITY
dc.typeText
dc.type.genreThesis/Dissertation
dc.contributor.committeememberByzalov, Dmitri
dc.contributor.committeememberSu, Barbara
dc.contributor.committeememberZhao, Zhigen
dc.description.departmentBusiness Administration/Accounting
dc.relation.doihttp://dx.doi.org/10.34944/dspace/4762
dc.ada.noteFor Americans with Disabilities Act (ADA) accommodation, including help with reading this content, please contact scholarshare@temple.edu
dc.description.degreePh.D.
dc.identifier.proqst14143
dc.date.updated2021-01-14T17:04:42Z
refterms.dateFOA2021-01-18T20:23:06Z
dc.identifier.filenameLi_temple_0225E_14143.pdf


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