Multiple Regulators and Accounting Restatements: Evidence from Canada

Brian M. Burnett, Daphne Hart, Bjørn N. Jørgensen, Gregory W. Martin

Research output: Contribution to journalJournal articleResearchpeer-review


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. © 2019, American Accounting Association. All rights reserved.
Original languageEnglish
JournalJournal of International Accounting Research
Issue number2
Pages (from-to)3-29
Number of pages27
Publication statusPublished - Jan 2019
Externally publishedYes


  • Cross-list
  • IFRS
  • Legal origin
  • Regulatory coordination
  • Restatements

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