The role of accounting profession in development and regulation of modern capital markets since 1970s

The role of accounting profession in development and regulation of modern capital markets since 1970s Essay example
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Finance & Accounting
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Critically evaluate the role of the accounting profession in the development and regulation of modern capital markets from 1970 to the present. Critically evaluate the role of the accounting profession in the development and regulation of modern capital markets from 1970 to the present…

Introduction

It should be noted that the accounting profession can be divided into two major categories: the public accounting, ‘related to services such as tax and auditing’ (Bailey 1989, p.1), and the internal accounting, which refers to accounting services related to organizational activities (Bailey 1989, p.1). The accounting profession, in both of its forms, can affect the development of capital markets worldwide, as analyzed below. Through the decades, the accounting profession has highly contributed in the development of the capital markets worldwide. The relationship between the accounting profession and the capital markets from 1970 onwards is examined in this paper. The characteristics of the accounting profession and its effects on business performance are also discussed, in order to understand the current challenges of the specific profession but also its role in the achievement of organizational goals. The role of accounting profession in the development and the regulation of capital markets can be understood only by referring primarily to the characteristics of accounting profession, as they can be made clear through appropriate theories. ...
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