Český finanční a účetní časopis 2007(1):11-29 | DOI: 10.18267/j.cfuc.206

Institutional View of Accounting

David Procházka
Ing. David Procházka - doktorand; Katedra finančního účetnictví a auditingu; Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <prochazd@vse.cz>.

The series of corporate accounting scandals drew attention to the stewardship function of accounting. This exposition deals with the characteristics of accounting from perspective of institutional economic theory. I analyze relationship between owner and manager by the principal-agent model. This model helps us to reveal the causes which led to corporate scandals at the beginning of this millennium. As a reaction to these scandals, American Congress approved Sarbanes-Oxley Act. This act should help to protect investors by improving the accuracy and reliability of corporate disclosures.

Keywords: Contractual costs theory; Agency theory; Creative accounting; Corporate accounting scandals; Sarbanes-Oxley Act.
JEL classification: D86, M41, M42

Published: March 1, 2007  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Procházka, D. (2007). Institutional View of Accounting. Czech Financial and Accounting Journal, 2007(1), 11-29. doi: 10.18267/j.cfuc.206
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Belkaoui, A. R. (1992): Accounting Theory. Orlando, Hartcourt Brace College, 1992.
    2. Berle, A. A. - Means, G. C. (2003): The Modern Corporation and Private Property. New Brunswick, Transaction Publishers, 2003.
    3. Coase, R. H. (1937): The Nature of the Firm. Economica, 1937, roč. 4, č. 16, s. 386-405. Go to original source...
    4. Chambers, R. J. (1974): Accounting, Evaluation and Economic Behavior. Houston, Scholars Book, 1974.
    5. Janhuba, M. (2005): Základy teorie účetnictví. Praha, Oeconomica, 2005.
    6. Naser, K. H. M. (1993): Creative Financial Accounting: Its nature and use. Englewood Cliff, Prentice-Hall, 1993.
    7. Varian, Hal R. (2003): Intermediate Microeconomics: A modern approach. New York, W. W. Norton, 2003.
    8. Zeff, S. A. - Keller, T. F. (1974): Financial Accounting Theory I: Issues and controversies. New York, McGraw-Hill, 1974.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content