Research Issues in Accounting for Cross-Border Organizations

Shyam Sunder Yale University (Slide 1) (Slide 2). We can think about the problems of financial reporting and control in cross-border organizations at the level of individual organizations; as well as at more aggregate, economy-wide, levels. Economies can be viewed at national, regional and international levels. If time permits, we shall consider a third level and analyze the problems faced by individual agents in making decisions in cross-border settings. What are some of the interesting research issues in these areas? Since I have the task of merely identifying the issues, without having to address them myself, perhaps I can afford to be more expansive than those who actually have to find the answers. Organizations and Accounting Instead of starting at the top or the bottom of my list, allow me consider the organizations first, and then link them to the more aggregate, and if we have time, to the individual decision levels. (Slide 3) We can think of business organization as a set of contracts, and accounting as a mechanism to define, implement, and enforce these contracts. The contracting parties supply various factors of production to the firm, and buy its output. These contracts depend on the factor and product market conditions, and therefore vary across individuals, organizations and economies (Sunder, 1997). The contract model of the firm and accounting can serve as a theoretical basis for cross-border