Economic Imperialism and the Crisis in Financial Accounting Research

Reiter, Sara Ann

doi:10.1006/cpac.1997.0120

Cited by 67 publications

(37 citation statements)

References 53 publications

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“…They see profit manipulation, which they euphemistically call "earnings management" 1 , from an exclusively economic standpoint. Due to poor empirical results, this program of research has led to a crisis in accountancy research today (Reiter, 1998) and teaches us little about the behaviour of the actors in this field. Indeed, Macintosh (1995, p.296) emphasises the "need to know a lot more about the profit manipulation behaviour of managers in organizations".…”

Section: Introductionmentioning

confidence: 99%

Corporate governance and profit manipulation: a French field study

Lambert¹,

Sponem

2005

Critical Perspectives on Accounting

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Profit manipulation has been largely studied through Positive Accounting Theory (PAT). However, the weakness of the results obtained would suggest using different theoretical and methodological approaches to examine this subject. In France, management controllers play a central role in profit manipulation. This paper offers a comprehensive analysis of their profit manipulation practices. Using results from 32 interviews in 13 companies, we argue that the spread of Anglo-Saxon corporate governance model has fostered such behaviour. Far from the opportunism hypothesis supported by positive accounting theory, profit manipulation is used as a tool by management controllers to gain broader legitimacy within organizations and/or to adopt what they claim to be ethical behaviour.

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Section: Introductionmentioning

confidence: 99%

Corporate governance and profit manipulation: a French field study

Lambert¹,

Sponem

2005

Critical Perspectives on Accounting

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“…This premise is the one that has dominated accounting policy for the past 50 years and goes by the name "decision usefulness," which FASB/IASB concepts indicate is the purpose of financial reporting: to provide decision useful information. It is a premise that signals another triumph for the intellectual imperialism of economics (Reiter, 1998). Yet, as Professor Sunder observes (and Williams and Ravenscroft (2015) analyze in depth) decision usefulness is not a feasible purpose for financial reports because decision usefulness is not an inherent property of any accounting datum.…”

Section: Remembering Accounting Normsmentioning

confidence: 99%

Really Rethinking Financial Reporting: A Discussion of Rethinking Financial Reporting: Standards, Norms and Institutions by Shyam Sunder

Williams

2018

Accounting, Economics, and Law: A Convivium

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Abstract:Professor Sunder's book raises significant issues about the state of financial reporting, particularly his concern at the proliferation of complex rules for which there are only questionable justifications. In this review essay issue is taken not that there isn't a problem with current financial reporting, but with the unexamined premise about the nature of that problem and the role that accounting and auditing play in the regulation of the modern, powerful corporation. It is argued that rules are the logical consequence of a competitive order and that resorting to norms as an alternative to rules or standards promises no better alternative unless there is a critical examination of who is to be the community to which norms apply. Thus, it is crucial to question the premise of decision usefulness as the underlying purpose of accounting vis-a-vis the publicly traded corporation. I argue that re-considering the historical norms of accounting that are based on the premise that holding corporations accountable, is crucial to really rethinking financial reporting.

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“…102-103). As in Reiter's (1998) paper, these criticisms often lead up to more general attacks on mainstream neo-classical economics (Tinker et al, 1982;Neu, 1992;Robson, 1993a, pp. 2-6; also cf.…”

Section: The Business Enterprisementioning

confidence: 99%

Bookkeeping, accounting, calculative practice: the sociological suspense of calculation

Vollmer

2003

Critical Perspectives on Accounting

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Economic Imperialism and the Crisis in Financial Accounting Research

Cited by 67 publications

References 53 publications

Corporate governance and profit manipulation: a French field study

Corporate governance and profit manipulation: a French field study

Really Rethinking Financial Reporting: A Discussion of Rethinking Financial Reporting: Standards, Norms and Institutions by Shyam Sunder

Bookkeeping, accounting, calculative practice: the sociological suspense of calculation

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