Legal Systems and Their Impact on the Amount of Disclosure Related to IT Problems: Evidence from the Y2K Dilemma

نویسنده

  • S. Mitchell Williams
چکیده

This study examines the impact of nation’s legal system on corporate disclosures. However, this study breaks with prior research in two significant ways. First, this study extends prior research by analyzing differences in disclosure practices in Roman-Germanic Law nations of different origins within this legal family. Second, this study focuses on a single disclosure issue rather than general disclosures as investigated in previous studies. Specifically, this study analyzes the association between legal systems and disclosure practices related to the Year 2000 (Y2K) dilemma. Empirical findings reported in this paper are based on a survey of the 1997-1998 fiscal-year annual reports of 1618 organizations from 17 countries. Tests of means indicated a significant different between the average amount of Y2K disclosure from firms in nations with a Common Law legal system compared to their counterparts from nations with a Code Law legal system. Results from multiple regression analysis also supported the positive association between a Common Law legal system and the amount of Y2K related disclosure. Supplementary analysis of disclosure practices of firms from Code Law countries indicate the underlying origin (that is French, German and Scandinavian) of this legal system in each nation had a significant impact on the amount of Y2K information disclosed. That is, organizations from countries with a Code Law legal system based on French origins were significant greater than compared to organizations from nations with a Code Law legal system of Germanic origins. There were not significant differences, however, with the amount of disclosure on this IT related problem of companies from nations with a Code Law legal system of Scandinavian origins.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

An International Investigation of the Association Between Societal Variables and Amount of Disclosure on Information Technology Problems: The Case of Y2K

The purpose of this study was to determine possible future disclosure practices related to information technology (IT) problems and the factors affecting such practices within an international accounting context. Disclosure practices related to Y2K disclosure practices was used as the central frame of reference for this study. Based on the survey of 1997/1998 fiscal-year annual reports from 161...

متن کامل

The Impact of Organizational Culture on Voluntary Disclosure (Evidence from Tehran Stock Exchange)

Many organizational and environmental factors affect the information disclosure and the quality of its presentation; organizational culture is the most important factor among these factors. The organizational culture that is based on transparency will provide the information environment dynamism and it will also lead to the improvement of the quality of information disclosure by the business un...

متن کامل

The impact of non-compliance with the legal requirements for disclosure of information on securities transaction

Due to the specific characteristics of securities, in securities contracts it is difficult for the investors to have the information which is necessary for entering into the contract. Accordingly, in accordance with the Securities Market Act and the relevant regulations, the issuers of securities, in the primary and secondary markets, are required to disclose material information about securiti...

متن کامل

Reevaluation of problems and challenges in Iran University of Medical Sciences, the first step to an effective performance improvement

Background: In Iran, medical universities are responsible for providing medical education and health services as well as maintaining and improving population health through scientific and innovative methods. Identifying problems and challenges that hinder universities’ performance, and supporting them with innovative problem solving methods can help managers in achieving university goals. Rreco...

متن کامل

Voluntary Disclosure and Informational Content of Share Price: Evidence from Tehran Stock Exchange

The aim of this research was to determine the impact of voluntary information disclosure on informational content of share price. In this regard, future earnings response coefficient was used to determine the informational content of the share price about the future income information. Furthermore, share price synchronicity was used to evaluate the informational content of the share price about...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2001