| COUFALOVÁ, Lucie, Štěpán MIKULA and Libor ŽÍDEK. Misreporting in financial statements in a centrally planned economy: The case of Czechoslovak state-owned enterprises in late socialism. Accounting History. London: SAGE PUBLICATIONS LTD, 2023, vol. 28, No 1, p. 170-191. ISSN 1032-3732. Available from: https://dx.doi.org/10.1177/10323732221109652. |
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@article{2210877,
author = {Coufalová, Lucie and Mikula, Štěpán and Žídek, Libor},
article_location = {London},
article_number = {1},
doi = {http://dx.doi.org/10.1177/10323732221109652},
keywords = {centrally planned economy;Czechoslovakia;principal-agent problem;financial statements;creative accounting;manager bonuses;Benford’s law},
language = {eng},
issn = {1032-3732},
journal = {Accounting History},
title = {Misreporting in financial statements in a centrally planned economy: The case of Czechoslovak state-owned enterprises in late socialism},
url = {https://journals.sagepub.com/doi/pdf/10.1177/10323732221109652},
volume = {28},
year = {2023}
}
TY - JOUR
ID - 2210877
AU - Coufalová, Lucie - Mikula, Štěpán - Žídek, Libor
PY - 2023
TI - Misreporting in financial statements in a centrally planned economy: The case of Czechoslovak state-owned enterprises in late socialism
JF - Accounting History
VL - 28
IS - 1
SP - 170-191
EP - 170-191
PB - SAGE PUBLICATIONS LTD
SN - 10323732
KW - centrally planned economy;Czechoslovakia;principal-agent problem;financial statements;creative accounting;manager bonuses;Benford’s law
UR - https://journals.sagepub.com/doi/pdf/10.1177/10323732221109652
N2 - Communist economies of the former Eastern Bloc were driven by systems of central planning. The central plan set detailed goals to be achieved by the state-owned enterprises, which often struggled to meet them and obtain bonuses or avoid the related sanctions. In line with the principal-agent theory, we study the behaviour of managers of the Czechoslovak state-owned enterprises in this specific environment and investigate the possibility of using creative accounting methods and other methods to cover failures in meeting those plans. Statistical analysis based on accounting records from the 1970s and 1980s recovered from state archives indicates that meeting the central plans targets was often achieved through false reporting. This conclusion is further supported by two series of 75 and 80 interviews with former managers of socialist state-owned enterprises. We expect our findings to hold for other centrally planned economies, as managers’ original motivations were distorted by features which were inherent to the centrally planned system itself.
ER -
COUFALOVÁ, Lucie, Štěpán MIKULA and Libor ŽÍDEK. Misreporting in financial statements in a centrally planned economy: The case of Czechoslovak state-owned enterprises in late socialism. \textit{Accounting History}. London: SAGE PUBLICATIONS LTD, 2023, vol.~28, No~1, p.~170-191. ISSN~1032-3732. Available from: https://dx.doi.org/10.1177/10323732221109652.
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