Rules-Based Accounting Standards and Litigation

We thank Harry Evans and Wayne Thomas (the editors), two anonymous referees, Shuping Chen, Ted Christensen, Cristi Gleason, Paul Hribar, Ross Jennings, Bruce Johnson, Bill Kinney, Robert Prentice, Catherine Schrand, Xiaoli Tian, Yong Yu, and workshop participants at the Lone Star Accounting Research Conference held at Rice University, The University of Iowa, The University of Texas at Austin, and the University of Pennsylvania, The Wharton School for their helpful comments and suggestions. We thank Tzu-An Chen, Michael Cummings, Isaac Griesbaum, Apurwa Pokhrel, Taylor Stima, Kaylee Waite, and Tina Wang for excellent research assistance. We thank Andrew Leone for graciously sharing data regarding restatements. We thank the McCombs School of Business at The University of Texas and the Tippie College of Business at The University of Iowa for generous financial support.

Editor's note: Accepted by John Harry Evans III, with thanks to Wayne Thomas for serving as editor on a previous version.