scholarly journals ‘Dams and flows’: boundary formation and dislocation in the financialised firm

2021 ◽  
Author(s):  
Adam Leaver ◽  
Keir Martin
Keyword(s):  
Corporate Governance ◽  
Moral Reasoning ◽  
Limited Liability ◽  
Mainstream Economic ◽  
Boundary Formation ◽  
Economic Theories ◽  
Accounting Practice ◽  
Firm Boundary ◽  
Moral Arguments ◽  
Historical Moment

Abstract Mainstream economic theories of the firm argue that the boundary between firm and market is determined by efficiency-enhancing logics which optimise coordination or bargaining outcomes. Drawing on social anthropological work, this paper critiques these accounts, arguing instead that firms are socially embedded and that firm boundary formation should therefore be understood as an attempt to fix the limits of certain relational rights and obligations that are moral in their conception. Consequently, boundaries are often contested and subject to renegotiation. We employ the parsimonious concepts of ‘dams and flows’ to examine how attempts to curtail the claims of some stakeholders and extend the claims of others at any one historical moment produce boundaries of different kinds. To illustrate this, we first trace the moral arguments used to advance limited liability rights to shareholders during the Companies Act in the mid-nineteenth century, which cut or ‘dammed’ obligations at a particular point and moment, directing new flows of obligation and wealth. We then explore the different moral reasoning of agency theory—the foundation of the financialised firm—which foregrounds the property rights of shareholder principles and obligations of managerial agents to them. We argue that this moral reasoning led to new dams and flows that have changed corporate governance and accounting practice, producing—counterintuitively—a reinvigorated form of managerialism, leaving the firm financially and morally unstable; its boundaries increasingly unable to contain its relational tensions.

Theorizing Corporate Governance: Organizational Alternatives

2003 ◽  
Vol 14 (2) ◽  
pp. 159-173 ◽  
Author(s):  
Simon Learmount
Keyword(s):  
Corporate Governance ◽  
Distinctive Features ◽  
Economic Theories ◽  
Social Controls ◽  
New Research ◽  
The Way

In this paper I contrast ‘economic’ and ‘organizational’ approaches to corporate governance, in order to draw out some of their distinctive features and discuss their relative strengths and weaknesses. I identify some promising areas of new research that examine the role of social controls and trust for the way that companies are governed. Although these are fairly embryonic, I argue that they call into question the hegemony of economic theories in theorizing the governance of the corporation. I conclude by advocating a re-consideration and broadening of the current conceptual scope of corporate governance, so as to facilitate and encourage other potentially valuable ways of exploring and understanding how companies are governed.

Extreme Inequality in Income and Wealth

2017 ◽  
pp. 1-24
Author(s):  
Venkat Venkatasubramanian
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Free Market ◽  
Mainstream Economic ◽  
Market Society ◽  
Global Trends ◽  
Economic Theories ◽  
Novel Theory

Chapter one provides a summary of the global trends in income inequality and ask what kind income distribution there ought to be, under ideal conditions, in a free market society. The chapter also raises three other fundamental questions regarding the fairness, stability and optimality of such a distribution. Since these questions cannot be answered by mainstream economic theories, or by econophysics, we outline the development of our novel theory to address them.

A “Big Bath” in China: accounting and corporate governance

2011 ◽  
Vol 1 (1) ◽  
pp. 1-6
Author(s):  
Mingchuan Ren
Keyword(s):  
Corporate Governance ◽  
Governance Structure ◽  
Subject Area ◽  
Performance Criteria ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Accounting Practice ◽  
Creative Accounting ◽  
The Government ◽  
One Year

Subject area Accounting, corporate governance, business ethics. Study level/applicability MBA and EMBA. Case overview China has largely changed its accounting practice in line with international norms. But its corporate governance structure continued to be administratively driven. Many Chinese-listed companies, especially big ones, are transformed from state-owned enterprises, with the government as their largest shareholder. It is no exception to Company C. Then what is the common pattern of accounting behaviour in China? An insight could be drawn by analysing this case. Expected learning outcomes Highlight two issues in point, namely accounting issue and governance issue. Chinese companies are now allowed to choose their accounting policies, while their top decisions are subject to government policies. Identify Company C's creative accounting by discussing China's accounting reform. In this regard, China has been relatively robust in terms of dropping its own practice and adopting western one. Discuss the corporate governance issues unveiled. What are company's performance criteria? Are they clearly established and enforced? And what about government's decision to change CEO twice in less than one year? What are the impacts on CEO's behaviour? Supplementary materials Teaching note.

scholarly journals Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

2021 ◽  
pp. 39-50
Author(s):  
Abdulrahman Bala Sani ◽  
Ruth Oluwayemisi Owoade
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Board Independence ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Board Size ◽  
Accounting Practice ◽  
Creative Accounting ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

scholarly journals Corporate Governance of Family Businesses in Croatia

2021 ◽  
Vol 2 (1) ◽  
pp. 9-27
Author(s):  
Mihaela Braut Filipović
Keyword(s):  
Corporate Governance ◽  
Family Business ◽  
Limited Liability ◽  
Comparative Law ◽  
Legal Framework ◽  
Family Businesses ◽  
Family Farms ◽  
Socio Economic Development ◽  
Legal Forms ◽  
Successful Transfer

The importance of family businesses in the Croatian economy is well known. In this respect, Croatia is part of the larger picture in which family businesses are considered of fundamental importance to the European Union’s economy. The most specific feature that sets Croatian family businesses apart is that they are all relatively young, as they were mostly established in the 1990s. This is due to the socio-economic development of Croatia as a country that was part of the former Yugoslavia. In this regard, although the traditions of certain crafts and products are significantly older, the modern legal vehicles through which such business is conducted, that is, Croatian companies, are only around thirty years old. This fact contributes to the hypothesis that governance issues related to family businesses are an underdeveloped legal area. However, the need to address the specific needs of Croatian businesses is on the rise, as a significant number of the founders are now retiring, and the issue of successful transfer of these businesses has never been more important. The goal of this article is to question whether available legal instruments for enhancing the governance of family businesses from comparative law and practice such as family constitutions and family councils can be applied in Croatian practice as well. To this end, this study analyses the most significant legal forms in which a family business can be established in Croatia: crafts, family farms, and all types of commercial companies (with an emphasis on limited liability and joint-stock companies). Analysis of the Croatian legal framework from the perspective of family businesses will contribute to the comparative discussion regarding the specific legal needs and challenges of such businesses.

15. Corporate governance 1: corporate governance and corporate theory

2016 ◽  
Author(s):  
Alan Dignam ◽  
John Lowry
Keyword(s):  
Corporate Governance ◽  
Corporate Law ◽  
Economic Theories ◽  
The Core ◽  
The Subject ◽  
Corporate Theory ◽  
History And Theory

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter looks at history and theory associated with corporate governance. It first considers Berle and Means’ concern about the separation of ownership from control, particularly managers’ lack of accountability not only to investors but also to society in general. It then traces the emergence of the Berle and Means corporation and examines major influences on corporate theory, citing concession theory, fiction theory, corporate realism, and aggregate theory. It also discusses economic theories that have influenced scholarship on corporate law.

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