2011 Volume 19 Issue 2 Pages 53-74
Based on the recent advances in microeconomics literature, particularly contract theory literature, this paper discusses a new perspective to acquire an understanding of accounting: comparative institutional analysis of accounting. The paper argues that this perspective is also useful to gain an insight into accounting control function in organizations. The paper first summarizes recent contract theory literature from the viewpoint of a research methodology in accounting research. Next, it explains how comparative institutional analysis of accounting can provide a valuable perspective for accounting research by examining the use of accounting measures in executive compensation contracts and franchising contracts in convenience store industry. The paper also covers specific studies about comparative institutional analysis of accounting.
