Abstract
Purpose - This paper analyzes the compatibility of actor network theory (ANT) and new institutional sociology (NIS), and illustrates an accounting change case study informed by both ANT and NIS. Design/methodology/approach - Interpretive case study.Findings - The Finnish case city experienced several path-dependent changes concerning performance measurement (PM), financial reporting and the adoption of enterprise resource planning system (ERP). New tools such as the ERP have a potential to transform the actors and to change the agency of the actors. Furthermore, the concepts from ANT and NIS can together enrich analyses of accounting changes. Research limitations/implications - Although we do not provide an in-depth analysis of the case city, this illustration suggests some guidelines for using ANT and/or NIS in accounting studies. Practical implications - Understanding accounting developments as an intentional and path-dependent process affected and constrained by networks, pressures and actors should contribute to better management of accounting changes. Originality/value - Being informed by both ANT and NIS improves our understanding of accounting change and stability, serendipity, practice variations, changes beyond the minimum required to satisfy external requirements, and the continued use of some accounting tools despite their limited functionality. Furthermore, we introduce the concepts ‘dynamic agency’ and ‘constrained transformation’ for studies of accounting change.
Abstract
Purpose - The purpose of this study was to examine the actions owner-managers of small businesses undertake in managing working capital. Design/methodology/approach - The study adopted an exploratory research design. The point of saturation was achieved after ten owner-managers were interviewed. Data were analyzed using content analysis technique with the aid of NVivo software. Verbatim texts were used to explain the emergent themes.Findings - The findings indicate that in the absence of systems, structures and procedures, small business owner-managers intuitively plan, monitor and control their working capital. The activities undertaken include; reliance on memory and oral agreements, informal planning, assuming inventory limits, unconventional record keeping, cash flow based information management and giving credit to close associates.Research limitations/implications - A more detailed investigation of the steps in the action sequence may advance our understanding of the process. Future studies need to test the effect of personal characteristics on working capital management process.Practical implications - Owner-managers of small businesses do not require the same degree of sophistication employed in planning, monitoring and controlling working capital. They require soft skills. Therefore, academicians, practitioners and policy makers need to emphasize knowledge management and cash accounting.Originality/value - This study examines the process perspective of working capital management, an aspect that has not been adequately highlighted in previous studies.
Abstract
Purpose - This paper reviews existing research in the management control systems field in the banking industry. It identifies gaps in the existing literature and suggests some directions for future research. Design/methodology/approach - The review was carried out principally by consulting leading accounting journals, followed by other relevant journals covering all publications from the inception of the particular journal to 2010. The published articles are categorized by their research topics, theories, methodologies, and settings. Findings - Our review reveals a dearth of detailed studies on management controls in the banking sector. As evident from the sizeable number of descriptive studies most prior studies do not engage in an in-depth inquiry into control issues of banks, and lack clear articulation either theoretically or methodologically. We find that currently little is known on the concerns encountered by banks and the nature of management control practices deployed. Research limitations/implications - This review is selective and illustrative of the state of management control research pertinent in the banking sector, and does not attempt a comprehensive coverage of all research. However, it has important implications. It identifies gaps in the current literature and makes calls for further research on a number of fronts; in-depth case studies, comparative studies and survey research on functioning of various modes of management control such as organizational budgeting and balanced scorecard (BSC) practices, management control research in countries outside the developed world to identify specific issues in banks and the resultant management control ramifications, as well as the management control implications of the global financial crisis.Practical implications - In light of the review findings the paper offers some lessons and insights for practicing managers.Originality/value - Although some general reviews on various facets of management accounting across time has been undertaken by past researchers, industry-based reviews have not been their focus. Through a systematic review of management control research in the banking arena, this paper shows that despite the significant position occupied by the banking industry in the economy of a country, and despite the importance of management controls for banks, adequate attention has not been placed by researchers on exploring control issues therein.
Abstract
Purpose - The purpose of this exploratory study is to gain a better understanding on the motivations behind private equity (PE) activities in Australia.Design/methodology/approach - This paper reports findings arising from face to face semi-structured office interviews with individuals representing stakeholders in the market for private equity during the pre-GFC period (2007-2008) and the post-GFC period (2012). Namely private equity partners and finance professionals. Findings - In general, the stakeholders interviewed perceive that the motivations behind private equity bids are not well understood, and they highlight the need for more education. They state that private equity enables management to make prompter decisions; capture opportunities more effectively; reduce paperwork for executives; and accountability to a broad investor base, and most importantly create value for a business, as the ownership is more closely involved with the management in the day to day operations of the business. Post-GFC PE firm reputation and track record are considered even more crucial than before the GFC, as debt providers in particular have become more wary when lending, based on the interview responses. Originality/value - The findings have implications for the agency relationship model, the principals' role might appear more tightly aligned with that of the agent, and so are their motivations, thus reducing monitoring costs, but post-GFC responses indicate that this might not be so. Concerns over empire building and gains through transaction costs are raised. The paper concludes by drawing from the insights gained by the authors through the comments of the participants. Private equity activity has helped Australia become a more competitive business economy, although it is only a small part of the economy's GDP.