Competitive viability, accountability and record keeping: a theoretical and empirical exploration using a case study of Jamaican commercial bank failures

摘要

This study seeks to explore the relationships among competitive viability,udaccountability and record keeping in private sector entities. These relationships areudexplored both theoretically and empirically using a case study of Jamaicanudcommercial bank failures. The study builds upon earlier research on the relationshipudbetween record keeping and public sector reform initiatives in Africa, which foundudthat poor record keeping has undermined the success of these initiatives. The studyudaims to show how poor record keeping similarly can undermine the competitiveudviability of private sector entities and thereby economic development initiativesuddependent on the private sector. The study employs a Grounded Theory-basedudmethodology using data on Jamaican commercial bank failures to develop audtheoretical argument for linkages among competitive viability, accountability andudrecord keeping. The study argues that effective records accountabilities and controlsudare critical to the operation of accountability systems that provide the basis forudinternal control and sound decision-making in private sector entities. Whenudaccountability systems are weakened because of ineffective record keeping,udmanagement is unable to access information needed to maintain operational controludand make sound decisions. This leaves the business weakened and vulnerable toudcollapse. The study illustrates this dynamic with reference to the failure of severaludJamaican commercial banks, showing how an absence of effective records controlsudundermined the quality and availability of accounting and management information inudthese banks which, in turn, weakened the systems of accountability that the banks'uddirectors, managers and supervisors relied upon to manage and control the banks balance sheets and business risks. The study concludes by drawing out generaludmanagementle ssonsf rom the experienceo f the failed banks and offering policies andudstrategies to strengthen records accountabilities and controls.