Accounting Practices, Institutional Legitimacy, and Women's Leadership: A Critical Study on Village Credit Institutions in Bali

This study examines women’s leadership in Village Credit Institutions (Lembaga Perkreditan Desa – LPD) from a critical accounting perspective, viewing accounting as a social practice that shapes trust and institutional legitimacy. Using a qualitative case study of LPD Desa Adat Sawan, Bali, data were collected through interviews, observation, and document analysis. The findings show that repeated bankruptcies led to the delegitimization of accounting practices, as the customary village community no longer trusted financial records and control mechanisms. In this context, the appointment of a woman as Head of the LPD emerged as a situational response to failed male leadership. Consistent and disciplined accounting practices, including transparent reporting, strict credit control, and the application of customary sanctions, played a key role in restoring trust and stabilizing the institution. However, acceptance of women’s leadership was essentially pragmatic and did not translate into broader gender equality. Patriarchal structures and gendered power relations within customary village governance largely persisted. The study highlights the role of accounting in restoring institutional legitimacy while revealing its limited capacity to drive structural gender transformation.