This article uses the Canadian environment, where French civil law in the province of Quebec coexists with common law in the rest of Canada (denoted as bijural), to test the thesis of the neutrality of the legal system with regard to financial reporting quality. This single-country design allows...

The theory of law and finance proposed by La Porta et al. (1998) predicts that minority controlled ownership structures, i.e. the structures that allow voting rights to exceed cash-flow rights, are more frequent in legal contexts where investors are not well protected against the expropriation...