Corporate Collapse: Regulatory, Accounting and Ethical Failure

  • Frank Clarke
  • Graeme DeanEmail author


Outlined below are some underlying ideas pursued in our Corporate Collapse: Accounting, regulatory and ethical failure, which first appeared in 1997, revised in 2003, followed by a Chinese translation in 2006. Primarily case-based, it examined material over many decades in several countries, but mainly concentrated on Australian causes célèbres. Also detailed is our later book Indecent Disclosure: Gilding the corporate lily, published in 2007—it is theme based, reviewing similar material, but post-2000. Very little had changed during the 10 years interregnum, despite regulators’ and governments’ promises of rigorous corporate reforms. Both books were set against a background of repeated official inquiries into discrepancies between what corporations had disclosed about their trading affairs and their actual financial outcomes. The matters in focus have been concerns over many decades. They continue to be, as regulatory reforms have been piecemeal and ill-directed. The recent global financial crisis (GFC) revealed behavior suggesting that it is more likely the ‘truth’ that under the present regulatory regimes many corporations habitually ‘gild the lily’.


Corporate Governance Global Financial Crisis International Financial Reporting Standard International Account Standard Auditor Independence 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Anon (2002). Is Jack Grubman the worst analyst ever?, CNN Money.Google Scholar
  2. Bowers, S. (2012). Share price ruling this year. The Australian Financial Review, 48.Google Scholar
  3. Chambers, R. J. (1991). Accounting and corporate morality—the ethical cringe. Australian Journal of Corporate Law, I(1), 9–21.Google Scholar
  4. Chanos, J. (2009). We need honest accounting: Relax regulatory capital rules if need be, but don’t let banks hide the truth. Wall Street Journal, 23.Google Scholar
  5. Chatov, R. (1975). Corporate financial reporting. NY: Free Press.Google Scholar
  6. Clarke, F., & Dean, G. (2005a). Corporate governance: A case of misplaced concreteness?. Advances in public interest accounting, 11, Corporate Governance: Does any size fit? (Elsevier: JAI, 2005a), pp. 15–39.Google Scholar
  7. Clarke, F., & Dean, G. (2005b). Corporate officers’ views on cross-guarantees and other proposals to “lift the corporate veil”. Company and Securities Journal, 23, 299–320.Google Scholar
  8. Clarke, F., & Dean, G. (2007). Indecent disclosure. Cambridge: Cambridge University Press, pp. 41–44.Google Scholar
  9. Clarke, F. L., Dean, G. W., & Oliver, K. G. (1997). Corporate collapse: Regulatory, accounting and ethical failure. Cambridge: Cambridge University Press.Google Scholar
  10. Clarke, F., Dean, G., & Houghton, E. (2002). Revitalising group accounting: Improving accountability. Australian Accounting Review, 12, pp 58–72.Google Scholar
  11. Clarke, F., Dean, G., & Oliver, K. (2003). Corporate collapse: Accounting, regulatory and ethical failure, rev (2nd ed.). Cambridge: Cambridge University Press.Google Scholar
  12. Clarke, F., Dean, G., & Margret, J. (2008). Solvency solecisms: corporate officers’ problematic perceptions’. Australian Accounting Review, 71–80 Google Scholar
  13. Dean, G. W., & Clarke, F. L. (2010). ‘Unresolved methodological questions at the cross-section of accounting and finance. In T. Wise & V. Wise (Eds.), A Festschrift for Bob Clift, special issue of International Review of Business Research Papers, (Vol. 6(5), pp. 20–32).Google Scholar
  14. Dean, G., Clarke, F., & Houghton, E. (1995). Cross guarantees and negative pledges: A preliminary analysis. Australian Accounting Review, 5, 48–63.Google Scholar
  15. Dean, G., Clarke, F., & Houghton, E. (1999). Corporate restructuring, creditors’ rights, cross guarantees and group behaviour. Company and Securities Law Journal, 17, 73–102.Google Scholar
  16. Davies, H. (2010) Financial Crisis: Who is to Blame?, Malden, MA: Polity Press.Google Scholar
  17. Dowd, K., & Hutchinson, M. (2010). Alchemists of loss: How modern finance and government intervention crashed the financial system. New York: John Wiley.Google Scholar
  18. Gray, R. (1971). Rolls on the Rocks: The history of Rolls Royce, Tisbury, SalisiburyGoogle Scholar
  19. Green, E., & Moss, M. (1982). A business of national importance: The royal mail shipping group, 1902–1937. London and New York: Methuen.Google Scholar
  20. Gingrich, N. (2008) ‘Suspend mark-to-market now!’, Forbes, 29 September. Online Available (accessed 21 September 2011).
  21. Jacobs, M. (2006). Bell fight goes down to the wire as case winds up. Australian Financial Review, 9.Google Scholar
  22. Katz, I. (2008). SEC recommends keeping fair-value rule with changes. Bloomberg.Google Scholar
  23. Lee, T. (2006). Clarity comes too late for Cole’s liking. Australian Financial Review, 4.Google Scholar
  24. Lenaghan, N. (2012). Centro chiefs had the jitters. The Australian Financial Review, 48.Google Scholar
  25. Lynn, M. (2011) Bust: Greece, the Euro, and the Sovereign Debt Crisis, Hoboken, NJ: John WileyGoogle Scholar
  26. Magnan, M. (2009). Fair value accounting and the financial crisis: messenger or contributor?, Working paper, CIRANO—Scientific Publications Paper No. 27.Google Scholar
  27. Magnan, M., & Markarian, G. (2011). Accounting, governance, and the crisis: Is risk the missing link? European Accounting Review, 20(2), 215–231.CrossRefGoogle Scholar
  28. McDonald, F. (1962). Insull. Chicago: Chicago University Press.Google Scholar
  29. Munchau, W. (2011). The meltdown years: The unfolding of the global economic crisis. New York: McGraw Hill.Google Scholar
  30. O’Toole, F. (2009) Ship of Fools: How Corruption and Stupidity Sank the Celtic Tiger, London: Faber & Faber.Google Scholar
  31. Productivity Commission Report. (2010). Executive Remuneration in Australia, Australian Government printer;, Australian Government Printer, accessed on 6 March 2012.
  32. Ramsay, I. (Chairman) (2001). Independence of Australian company auditors: Review of current Australian requirements and proposals for reform, Australian Government Printer. Google Scholar
  33. Raw, C. (1992). The money changers: How the Vatican Bank enabled Roberto Calvi to steal $250 million for the heads of the P2 Masonic Lodge. London: Harvill.Google Scholar
  34. Ryan, S. (2008) ‘Accounting in and for the sub-prime crisis’, The Accounting Review, 83: 1605–1639.Google Scholar
  35. Schipper, K. (2003). Principles-based accounting standards. Accounting Horizons, 17(1), 61–72.Google Scholar
  36. Sexton, E. (2006). Nothing to stop another Hardie. Sydney Morning Herald, 17–18.Google Scholar
  37. Skeel, D. (2004). Icarus in the boardroom: The fundamental flaws in corporate America and where they came from. Oxford: Oxford University Press.Google Scholar
  38. Walker, R. G., & Walker, B. C. (2000). Privatisation—sell off or sell out?:The Australian experience. Sydney: ABC Books.Google Scholar
  39. West, B. P. (2003). Professionalism and accounting rules. London: Routledge.CrossRefGoogle Scholar
  40. Whalen, R. C. (2008). The subprime crisis: cause, effect and consequences, Networks Financial Institute Policy Brief No. 2008-PB-04. Online. Available Accessed 12 Sept 2011.
  41. Zandi, M. (2009). Financial shock. Upper Saddle River, NJ: FT Press.Google Scholar
  42. Zion, D., Varshney, A., & Cornett, C. (2009). Focusing on fair value. Credit Suisse Equity Research Report, June 27.Google Scholar

Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.The Business SchoolThe University of SydneySydneyAustralia

Personalised recommendations