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Examining the decision to Opt In versus Opt Out of section 107 of the JOBS Act of 2012: Determinants and consequences

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The Jumpstart Our Business Startups Act of 2012 (hereafter, JOBS Act) creates a new category of firms, referred to as “Emerging Growth Companies” (hereafter, EGCs). Section 107 of the JOBS Act, titled “Opt-In Right for EGCs,” gives EGCs the choice to take advantage of an extended transition period for complying with new or revised accounting standards. | Examining the decision to Opt In versus Opt Out of section 107 of the JOBS Act of 2012: Determinants and consequences

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