Towards a framework to analyse the role of accounting in corporate governance in the banking sector

Athula Ekanayake, Hector Perera, Sujatha Perera

Research output: Contribution to journalArticle

Abstract

Accounting is considered as an integral part of corporate governance practices. However, limited attention has been paid in the literature to examine this issue systematically. Drawing on agency theory, stakeholder theory and contingency theory, this studyfills this gap by developing a framework to enable a comprehensive analysis ofthe role of accounting in corporate governance with special reference to the banking sector. Based on an extensive survey ofrelevant literature} we found that (a) four areas of accounting, namely external reporting, external auditing, management accounting, and internal auditing, could assist in practices related to intern.al and external corporate governance ofbanks; and (b) such assistance would however be moderated by various contextualfactors, i.e., internal organisation, organisational interface and external environment. The findings ofthis paper have implications for practitioners} with a proposed checklist for governance purposes andfor researchers by providing a framework that integrates the various theories 'that explain governance practices .
Original languageEnglish
Pages (from-to)21-40
Number of pages20
JournalJournal of applied management accounting research
Volume7
Issue number2
Publication statusPublished - 2009

Keywords

  • Corporate Governance Accounting
  • Context Banking Sector
  • Corporate Governance Bank Checklist

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