An Investigation Into U.S. Centric Railroad Accounting Research: 1820 to Date

• In Event: Accounting in Context: Past, Present, and Future

Abstract

Since the beginning of the 19th century, railroads have been a principal form of transport playing a major role in the development of the nineteenth century American, British and other developing economies. Their contributions to the development of accounting and auditing have attracted considerable scholarly effort. The first important aspect of railroad accounting is related to the way they were founded – as joint-stock companies; a type of business organization that created agency problems and the need for governance. Because railroads effectively and efficiently grew, they came to need accounting information and auditing services. Since accounting and auditing were unknown or little developed in the mid-1800s, the railroads had to devise effective practices to operate their businesses. Many of the procedures that they developed were later adapted by industrial corporations. As a result, the railroad industry can be looked to for an explanation of the formulation of many accounting techniques.

Authors

• Dale L Flesher, The University of Mississippi

• Gary John Previts, Case Western Reserve University