Book Review


Book Review

Accounting, Capitalism and the Revealed Religions – A Study of Christianity, Judaism and

Islam
Vassili Joannidès de Lautour

Cham, Switzerland: Springer International Publishing, 2017, 174 pp., $129 (paperback), ISBN

978-3-319-32332-9 (paperback)

I was delighted when the Book Reviews Editor of the EEA asked me to read this recently pub-

lished book about accounting and religion. This area of research is related to the topics covered

by an article I recently published in the Journal of Management, Spirituality and Religion for

which I had read extensively in the area. Therefore, I was motivated to discover whether this

book would present a different perspective to me.

The book under review represents the conclusion of a comprehensive research project that

involved a triple master’s degree in Social Sciences, Accounting & Finance and Education,

and a Ph.D. on accountability in a church setting. It addresses a very interesting and relevant

topic. The author underlines the established connections between capitalism and accounting,

but highlights that the core interest of the book lies in exploring connections between accounting

and religion. It assumes that each of the four relevant monotheistic religions (Roman Catholi-

cism, Judaism, Protestantism and Islam) has contributed to the spirit of capitalism and to the

development of accounting.

The need for understanding the notions of accounting, accountability and religion and the

intersection between these concepts is very important, not only from an historical view point,

but also in a contemporary perspective.

In the introduction, the book’s key constructs are defined (accounting and accountability, and

religion). While accountability is perceived as the giving and demanding of reasons for conduct,

using any form of accounts, accounting is understood in its simplest form, as a process driven by

a worldview. This results in categorizing any situation in two ways, always equaling each other

(double-entry bookkeeping and balancing of debits and credits). As Lautour states, accounting is

assumed broadly as the logic of categorizing conduct as liabilities (credit) and actions (debit).

However, it cannot be understood regardless of the goal which it pursues: accountability to a

Higher-Principal. The book expresses the view that, in order to approach accounting’s very

essence and ontology, it is necessary to depart from mere economic transactions and rather,

focus on the meaning of giving an account.

The definitions of religion presented in the book lie at the crossroads of sociology, anthropol-

ogy and philosophy. First, religion appears as an individual encounter with the holy: embracing

of religion consists of an intimate, personal and subjective experience of the divine. In a second

perspective, religion is viewed as a social community, representing the moral community con-

structed by all believers of the same faith, lay people, parishioners or churchgoers. As a social

community, religion represents its degree of institutionalization and its spatial scope. The book

offers a third perspective: religion as doctrines. Under this perspective, an institutional religion

Accounting in Europe, 2017

Vol. 14, No. 3, 430 – 433



relies on a religious elite who, throughout a religious system, offers a collective codification of

beliefs to the community (it codifies what is appropriate and what is not, as well good and evil,

holy and blasphemy, etc.).

While Lautour offers the reader a threefold concept of religion, he does not distinguish

between religion and religiosity as theoretical constructs. In my view, he should have done

this in the introduction of the book. As reported by Laermans (2006), Georg Simmel, a

German sociologist (1858 – 1918), in his ‘sociological impressionism’, established a separation

between religion and religiosity. In Simmel’s view, while religiosity involves a specific but com-

parable way of being, of relating to the world (to reality), in general, and to the social world (to

others), in particular, the notion of religion refers to the outcome of a process of separation and

institutionalization that goes hand in hand with the purification of an always already existing

religiosity (Laermans, 2006). As Dobbelaere (2014) and Weaver and Agle (2002) argue, religi-

osity of the people corresponds to their practices, beliefs and ethical views. Overall, it provides

specific ethical guidelines, emphasizes the general importance of ethical behavior and estab-

lishes ‘common knowledge’ for understanding whether experiences are ethical.

The book succeeds with the second chapter, which explores the roots of capitalism and

focuses on how Judaism, Roman Catholicism, Protestantism and Islam fostered a form of capit-

alism. This link is necessary to help the reader, in the third chapter, easily understand how

accounting is grounded in religion. While accounting is presented as a way of keeping

records of capitalist operations, it is argued that books of accounts serve as a moral practice

within capitalism. In this sense, as a moral device, accounting is argued to be influenced by reli-

gious thought underpinned by faith. Chapter three introduces the reader to an understanding of

how each of the four main religions defines and constructs an accounting spirituality, encoura-

ging believers to keep metaphoric accounts of their faithful conduct. It shows how the four reli-

gion’s authorities developed a specific accounting theology and spirituality.

Building on the philosophy of religions, the fourth chapter provides knowledge on what the

four main religions can teach us about the nature of accounting. Interestingly, Lautour concludes

that, while the four main religions highlight a different dimension of accounting, they also have

key points in common. In Roman Catholicism the institutionalization of sacramental accounting

serves to guide believers’ conduct. Judaism and Roman Catholicism reveal the notion of bio-

graphic accounts based on balanced double-entry records. Islam emphasizes two major issues

in double-entry bookkeeping: first, everything has a counterpart, which the accountant must

identify; and, second, a counterpart is contingent upon the context in which it is found.

Judaism and Islam highlight that accounting for how duties ordered by the Lord are performed

influences believers’ day-to day conduct. In Roman Catholicism and Islam, books of accounts

are kept by external bodies, and, in Judaism, Roman Catholicism and Islam, keeping of accounts

implies reconciliation, verification and certification. Finally, Protestantism reveals the contents

of contemporary debates about accounting objectivity/subjectivity and the role of criticism. It

emphasizes the impossibility of objective and true measurements and evaluation models,

which highlights the assumptions made by accountants, where criticism appears as a positive

quality for the accounting profession.

Chapter four was, for me, the most interesting part of the book, because it presents a different

perspective from the literature on accounting and religion that I have read in the past. The books

and articles that I have read focus on religion and its relation with accounting in a broader sense

– considering religion (and religiosity) as a social mechanism for influencing beliefs and beha-

viors. From the third, but especially from the fourth chapter of Lautour’s book, I took a different

perspective. I became able to understand what each of the four relevant monotheistic religions

contributes to the nature of accounting. As Lautour highlights, within the four main religions, a

form of accounting exists which differs from one belief system to another. What is central to the

Accounting in Europe 431



four religions, and crucial to accounting, is how world dualism is solved in different contexts and

why solutions may differ from one context to another. Notwithstanding differences, the four reli-

gions demonstrate the construction of a logical whole, and how accounting starts to be systema-

tic. They all sought to develop double-entry bookkeeping as a moralizing practice.

In the fifth chapter, Lautour presents a literature review on accounting and religion. From this

chapter, the reader obtains a perspective on the evolution of the research questions in the area,

and how researchers’ personal views of religion can affect their research relating to accounting

and religion. Lautour argues that two types of research are representative for contemporary

accounting research discussion: (1) accounting practices in a certain congregation, and (2) theo-

logical perspectives on accounting. While I agree that these two types of research are very inter-

esting topics, I disagree with Lautour’s argumentation that these are the most representative of

contemporary accounting research.

There is a growing stream of relevant contemporary accounting research not considered by

Lautour’s book. I refer to a body of archival accounting research, mainly from US and China,

that has explored the association between local religion (and religiosity) and corporate decisions

(Boone, Khurana, & Raman, 2013; Callen, Morel, & Richardson, 2011; Chen, Hu, Liang, & Xin,

2013; Du, 2013, 2014; Du, Jian, Du, Feng, & Zeng, 2014; Du, Jian, Lai, Du, & Pei, 2015; Du,

Jian, Zeng, & Du, 2014; Dyreng, Mayew, & Williams, 2012; El Ghoul, Guedhami, Ni, Pittman,

& Saadi, 2012; Hilary & Hui, 2009; McGuire, Omer, & Sharp, 2012). Generally, this line of

research reveals significant evidence that the behavior of individuals and, by extension, corpor-

ate behavior, is shaped by the religiosity levels of the community in which an individual/firm is

located. The approach used by this line of research considers a religion-based social identity and

sense of belonging and its effects on individuals and organizations behavior.

The last chapter of the book presents a study that addresses the construction of accounting

spirituality and the practice of faith-based double-entry bookkeeping – the Salvation Army

case. Lautour concludes that, in the Salvation Army, accountability leads to managerial account-

ing spirituality.

This is an interesting book that explores a very important topic for contemporary accounting

research. It demonstrates that accounting and capitalism have religious roots, and highlights

how the four main monotheistic religions viewed and incorporated accounting historically.

This book can be used in the Ph.D. curriculum, but I think that it is too challenging to be included

in the master-level curriculum. The book is also highly recommended for faculty members

and other researchers interested in exploring accounting and religion issues. It provides a

timely and highly relevant contribution to reflection and debate about religion and its organiz-

ational accountabilities.

ORCID

Tânia Menezes Montenegro http://orcid.org/0000-0003-1071-4368

References

Boone, J. P., Khurana, I. K., & Raman, K. K. (2013). Religiosity and tax avoidance. Journal of the American Taxation

Association, 35(1), 53 – 84.

Callen, J. L., Morel, M., & Richardson, G. (2011). Do culture and religion mitigate earnings management? Evidence from

a cross-country analysis. International Journal of Disclosure and Governance, 8(2), 103 – 121.

Chen, D., Hu, X., Liang, S., & Xin, F. (2013). Religion tradition and corporate governance. Economic Research Journal

(in Chinese), 59(10), 71 – 84.

Dobbelaere, K. (2014). The Karel Dobbelaere lecture: From the study of religions to the study of meaning systems. Social

Compass, 61(2), 219 – 233.

432 Book Review

http://orcid.org/0000-0003-1071-4368


Du, X. (2013). Does religion matter to owner-manager agency costs? Evidence from China. Journal of Business Ethics,

118(2), 319 – 347.

Du, X. (2014). Does religion mitigate tunneling? Evidence from China. Journal of Business Ethics, 125(2), 299 – 327.

Du, X., Jian, W., Du, Y., Feng, W., & Zeng, Q. (2014). Religion, the nature of ultimate owner, and corporate philanthro-

pic giving: Evidence from China. Journal of Business Ethics, 123(2), 235 – 256.

Du, X., Jian, W., Lai, S., Du, W., & Pei, H. (2015). Does religion mitigate earnings management? Evidence from China.

Journal of Business Ethics, 131(3), 699 – 749.

Du, X., Jian, W., Zeng, Q., & Du, Y. (2014). Corporate environmental responsibility in polluting industries: Does religion

matter? Journal of Business Ethics, 124(3), 485 – 507.

Dyreng, S. D., Mayew, W. J., & Williams, C. D. (2012). Religious social norms and corporate financial reporting.

Journal of Business Finance and Accounting, 39(7/8), 845 – 875.

El Ghoul, S., Guedhami, O., Ni, Y., Pittman, J., & Saadi, S. (2012). Does religion matter to equity pricing? Journal of

Business Ethics, 111(4), 491 – 518.

Hilary, G., & Hui, K. W. (2009). Does religion matter in corporate decision making in America? Journal of Financial

Economics, 93(3), 455 – 473.

Laermans, R. (2006). The ambivalence of religiosity and religion: A reading of Georg Simmel. Social Compass, 53(4),

479 – 489.

McGuire, S. T., Omer, T. C., & Sharp, N. Y. (2012). The impact of religion on financial reporting irregularities. The

Accounting Review, 87(2), 645 – 673.

Weaver, G. R., & Agle, B. R. (2002). Religiosity and ethical behavior in organizations: A symbolic interactionist per-

spective. Academy of Management Review, 27(1), 77 – 97.

Tânia Menezes Montenegro

University of Minho-School of Economics and Management, Braga, Portugal

E-mail: taniab@eeg.uminho.pt

# 2017, Tânia Menezes Montenegro

https://doi.org/10.1080/17449480.2017.1292039

Accounting in Europe 433

mailto:taniab@eeg.uminho.pt
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	References