IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

An Argument on Behalf of Pakaluk and Cheffers' Contention

Listed author(s):
  • Williams Paul F.

    (North Carolina State University)

Registered author(s):

    In Professor Baker’s review of the book by Pakaluk and Cheffers (2011) he took exception to their contention, implied in the book’s title, that accounting ethics contributed to the current financial crisis. Baker’s claim is that there is no evidence to support that contention. There have been a number of apologias for the accounting profession with respect to any culpability it might have in bringing the world to the state of financial crisis in which it currently finds itself. The financial crisis itself is evidence for accounting’s culpability in the crisis because the profession failed to prevent it. Since the inception of the profession in the United States, at least, the rationale for a profession of accounting has been that sufficient, reliable information would allow financial markets to self-police and lead to some kind of efficient allocation of capital, i.e., accounting functions to lubricate the capital markets and remove the frictions that result from “information asymmetries” and other such bothersome shortcomings inherent in markets. There is ample evidence that the profession has failed in that aspect of its self-proclaimed responsibility and, thus, is indeed partly responsible for the financial crisis. And, I intend to argue, that failure is at least partly a moral failure for which the profession, qua a profession, is responsible.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Download restriction for institutions: For access to full text, subscription to the journal is required. Individual readers who register with De Gruyter Online get free access.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by De Gruyter in its journal Accounting, Economics, and Law.

    Volume (Year): 2 (2012)
    Issue (Month): 1 (March)
    Pages: 1-4

    in new window

    Handle: RePEc:bpj:aelcon:v:2:y:2012:i:1:n:3
    Contact details of provider: Web page:

    Order Information: Web:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Ravenscroft, Sue & Williams, Paul F., 2009. "Making imaginary worlds real: The case of expensing employee stock options," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 770-786, August.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bpj:aelcon:v:2:y:2012:i:1:n:3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.