The role of accounting thought in financial hurricane 2008

الملخص EN

This study aims to know the role of accounting thought in the financial hurricane that faced the global economy in autumn 2008.

In order to achieve the objective of the study, the method of approach and comparative approach was used when reviewing the various literature that dealt with this subject in addition to the manifestations of the current financial crisis.

The study examined the relationship between monetary positive theory in the economic field developed by Milton Friedman in 1953 and the positive school in the accounting thought adopted by the School of Rochester at the end of the seventh decade of the last century influenced by the theory of economic positive, the theory that adopted the theory of the Agency to predict management behavior to influence the Accounting practice to achieve its own interests at the expense of the interests of other parties of the financial community within the framework of the contracts governing its work.

The study concluded that the positive theory is still prevalent in accounting thought and has a role in the current financial cyclone as a result of accounting practices biased by the administration.

And that there is a lack in the normative approach, which makes it impossible to control the behavior of the administration in light of the inability of the theory of positive in the economy to address the world's financial problems.