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Towards a Unifying Model of Systems of Law, Corporate Financing, Accounting and Corporate Governance
Author(s) -
NOBES CHRISTOPHER,
ROBERTS ALAN
Publication year - 2000
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2000.tb00052.x
Subject(s) - accounting , corporate governance , business , accounting information system , corporate law , positive accounting , accounting standard , causality (physics) , financial accounting , economics , finance , physics , quantum mechanics
Several authors have observed a relationship between a country's type of legal system and its style of financial reporting. Generally, the causality is presumed to be from legal system to accounting system. However, one model of accounting differences suggests that the type of accounting is an influence on the regulatory system rather than vice versa. This helps to explain why the Netherlands has Roman law but approximately Anglo‐Saxon accounting. It also allows for the extensive use by European companies of US or international rules. This paper expands on these themes, and extends the model to include corporate governance.