Accounting and trust in the enabling of long‐term relations

Abstract

The enabling role of accounting in supporting classical contractual exchange has been extensively analysed in agency theory. In contrast, analyses the role of accounting in enabling empirically important and welfare‐enhancing long‐term relations which rely on trust and co‐operation rather than legal remedies. Under what circumstances does accounting strengthen, weaken or even destroy the trust which underpins relations both within and between organizations? What are the implications for accountability? Explores these general questions in the contrasting contexts of compulsory contracting policies in UK local government and the transition from socialism in Eastern Europe.

Citation

Seal, W. and Vincent‐Jones, P. (1997), "Accounting and trust in the enabling of long‐term relations", Accounting, Auditing & Accountability Journal, Vol. 10 No. 3, pp. 406-431. https://doi.org/10.1108/09513579710178133