An empirical investigation of trends in barter activity in the Russian Federation

Gary Fleischman, Paul Herz

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

Barter, which has dominated the Russian economic landscape for years, has significant economic and accounting implications. Barter often camouflages Russian businesses' financial and tax statements making true costs, prices, values, and profits a mystery, thereby compromising financial-statement transparency. Contemporary literature suggests that barter is still rampant in Russia. For this study a group of Russian bu sinesspersons were asked to complete a survey regarding the levels of barter in Russia since 1996. The empirical evidence we collected provides insight into recent trends in barter in Russia, including indication that the incidence of barter has dramatically decreased. These findings have significant implications for Russian business and economic development. A reduction in barter is likely to enhance financial-statement transparency, thus minimizing information risk for potential investors and creditors.

Original languageEnglish
Pages (from-to)39-63
Number of pages25
JournalInternational Journal of Accounting
Volume40
Issue number1
DOIs
StatePublished - 2005

Keywords

  • Barter
  • Financial transparency
  • Russia
  • Tax evasion

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