Naslov
How An Accountant Can Destabilize A State?

Autori
Zenzerović, Robert ; Černe, Ksenija ; Rahmonaj, Sara.

Izvornik
Special Issue Published in International Journal of Trend in Research and Development (IJTRD) (2394-9333) 1 (2017); 16-21

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Accounting scandals, fraudulent financial reporting, conglomerates, systematic risk, (post)transitional economies

Sažetak
Discussion on systematic risk in terms of companies business is mostly related to financial institutions which are considered to be the bloodstream of every economy. They are often considered to be »too big to fail« and the bailout or the bail-in process is considered to be the most appropriate to eliminate the aforementioned risk. This processes became popular not only in financial, but as well in other industries where governments tried to eliminate various risks (not only systematic one) that are not rarely the results of deficiencies in neoliberal market economy concept. This paper presents a comprehensive view on importance that one nonfinancial conglomerate had and still has in (post)transitional economy – economy of the Republic of Croatia and surrounding South East European countries in which it operates. The breakdown of this conglomerate has been stopped or delayed ; next year will be crucial for its future. In the meanwhile authors discuss mainly from accounting but also from other important perspectives on how did the conglomerate grow, how did it get into the problems and what disruptions in national and international economies it brought: from potentially rise of unemployment, liquidity and insolvency problems of its suppliers and economy as a whole and problems in supply chain of its customers to positioning of global superpowers that use the conglomerate to take their geostrategic position on traditionally political unstable area in South East Europe. Authors used descriptive scientific method in elaborating the accounting and other views on the problems that conglomerate brought. Comparing various sources of data authors try to deduct conclusions on the importance that big companies could have in a small and open economy and how fraudulent financial reporting could seriously destabilize a state. The scope of this paper with provocative title is to emphasize the importance on corporate governance, risk management and finally responsibilities of accounting and auditing profession.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA