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Accounting fraud in a pre-modern historical context: An accounting investigation on the use of market (fair) value in the second half of the eighteenth century in Venice

Author

Listed:
  • Marisa Agostini

    (Dept. of Management, Università Ca' Foscari Venice)

  • Riccardo Cella

    (Università di Verona)

  • Giovanni Favero

    (Dept. of Management, Università Ca' Foscari Venice)

Abstract

The paper examines accounting practices, institutionsÕ role and the possible ways of defining accounting fraud in pre-modern historical context through the micro-analysis of a Venetian case. The three fraudulent financial statements, investigated in this paper, refer to the years 1781, 1782, and 1783, and regard Geminiano CozziÕs porcelain factory, an enterprise active in Venice in the second half of the eighteenth century. Their preparation was required by a government official (the Inquisitorato alle Arti) that, after the investigation of the statements, issued a report (called ÒRiflessioniÓ), emphasizing the reasons of the accounting fraud. In particular, the Inquisitorato highlighted the wrong evaluation of fixed assets at (historical) cost, arguing that it was far from the market (sale) value of such assets. The present paper examines the accounting criteria sought by the government official and fills part of the gap characterizing accounting history about the Italian peninsula (Zan, 1994).

Suggested Citation

  • Marisa Agostini & Riccardo Cella & Giovanni Favero, 2017. "Accounting fraud in a pre-modern historical context: An accounting investigation on the use of market (fair) value in the second half of the eighteenth century in Venice," Working Papers 12, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    • Handle: RePEc:vnm:wpdman:145
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    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Takatera, Sadao & Sawabe, Norio, 2000. "Time and space in income accounting," Accounting, Organizations and Society, Elsevier, vol. 25(8), pages 787-798, November.
    3. Philippe Aghion & Patrick Bolton, 1992. "An Incomplete Contracts Approach to Financial Contracting," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 473-494.
    4. Giovanni Favero, 2006. "Old and new ceramics: manufactures, products and markets in the Venetian Republic in the 17th and 18th centuries," Working Papers 2006_05, Department of Economics, University of Venice "Ca' Foscari".
    5. Hopwood, Anthony G., 1983. "On trying to study accounting in the contexts in which it operates," Accounting, Organizations and Society, Elsevier, vol. 8(2-3), pages 287-305, May.
    6. repec:dau:papers:123456789/1338 is not listed on IDEAS
    7. Marisa Agostini & Giovanni Favero, 2012. "Accounting fraud, business failure and creative auditing: A micro-analysis of the strange case of Sunbeam Corp," Working Papers 12, Venice School of Management - Department of Management, Università Ca' Foscari Venezia, revised Mar 2013.
    8. Ross L. Watts, 1977. "Corporate Financial Statements, A Product of the Market and Political Processes," Australian Journal of Management, Australian School of Business, vol. 2(1), pages 53-75, April.
    9. Luca Zan, 1994. "Toward a history of accounting histories," European Accounting Review, Taylor & Francis Journals, vol. 3(2), pages 255-310.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    accounting fraud; Venetian Republic; 18th century; pottery;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • N83 - Economic History - - Micro-Business History - - - Europe: Pre-1913

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