Contextualising the development of the accounting profession and corporate governance in Oman: A Northian institutional approach

Abstract

This thesis is a qualitative historical case study that looks into the development and professionalisation of accounting and corporate governance in the Sultanate of Oman with a main aim of exploring how the process relates to economic modernisation. Oman provides a suitable case in this context due to the dramatic change in its economic conditions after the discovery of oil and the government’s economic modernisation plans which have been implemented since 1970. To achieve this, this thesis uses Douglass North’s theory of economic institutions to model accounting, auditing, financial reporting, and corporate governance as an institutional matrix that was developed in the country to support its economic modernisation efforts.

To fully understand the process of accounting and corporate governance professionalisation in Oman and how it relates to economic growth and development, the thesis explores the role of international businesses in the transfer of accounting knowledge into the country. It has been found that the Big Four were particularly influential in transferring international accounting knowledge and practices in Oman by training local accountants, working as advisors for the government, and bringing international professionals in the field to work in Oman. Additionally, international financial organisations, namely, the OECD, have had a significant role in the transfer and development of corporate governance international best practice in the country.

The thesis also highlights the role of governments in the development of the accounting profession and corporate governance. It has been revealed that the influential capacity of the Big Four in Oman to develop the country’s accounting and corporate governance legislations and practices in line with the international developments was made possible by the Omani government itself. This notion was contextualised within the case study using the developmental state model. Oman was viewed as a developmental state that have been heavily involved in the institutionalisation of accounting and corporate governance as part of its overall economic modernisation strategy.

The thesis was informed by a mix of archival material obtained from British-based archives and an online archival catalogue. Furthermore, a series of semi-structured interviews were carried out with individuals who were involved in the institutionalisation and development of Oman’s accounting and corporate governance during the last 50 years.

Overall, this study contributes to accounting studies on developing Arab countries and contextualises accounting within various bodies of literature such as North’s institutional framework, international businesses, and developmental state. The findings of the study are hoped to benefit economic policymakers in countries seeking economic reform to incorporate accounting and corporate governance within the country’s institutional framework.

More information

Identifiers

ORCID for Fatma Al Khabouri: orcid.org/0009-0001-4463-959X

ORCID for Oliver Marnet: orcid.org/0000-0001-9450-2332

Catalogue record

Export record