[经管营销]ACCOUNTING AND CORPORATE GOVERNANCE IN THE BANKING INDUSTRY.pdf

ACCOUNTING AND CORPORATE GOVERNANCE IN THE BANKING INDUSTRY: CASE STUDY OF A PUBLIC SECTOR BANK IN SRI LANKA ABSTRACT This study critically examines the role of accounting in corporate governance in a public sector bank in a developing country. Based on a case study, the paper reveals that the actual role of accounting in corporate governance could differ from its potential role depending on the context within which accounting operates. The findings of this study are consistent with the contingency view of the effectiveness of accounting in organizations. The study also has both theoretical and practical implications, and will contribute to enhancing accounting’s role in corporate governance practices in banks in a developing country. Keywords: Role of Accounting; Corporate Governance; Public Sector Banks; Sri Lanka 1 INTRODUCTION Accounting research in public sector organizations has gained considerable importance in recent years (Perera, McKinnon and Harrison, 2005). Such studies, particularly those related to developing countries, have provided insights into how accounting’s role in practice differs from its potential role due to the nature of certain contextual factors prevailing in those countries. For instance, government’s use of regulatory powers for political rather than economic ends, poor regulations and weak enforcement mechanisms, and socio-economic uncertainties have been found to weaken the actual role of accounting, leading to poor corporate governance in public sector organizations (Hopper and Hoque, 2004). However, limited attention has been paid to examining these issues in public sector banks in developing countries. Banks in developing countries are typically the mai