Management control in an area of the NCB: Rationales of accounting practices in a public enterprise

Berry, A.J.; Capps, Teresa; Cooper, David J.; Ferguson, Patrick J.; Hopper, Trevor; Lowe, E.A.

doi:10.1016/0361-3682(85)90028-5

Cited by 221 publications

(90 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…If additional owners are attracted, shareholders may demand formal controls to monitor the contractual fulfilments of managers (Jensen and Meckling, 1976). Institutional theorists repeatedly find evidence suggesting that formal accounting and control are used to project an image of rational practice towards the environment, to maintain support needed for firm survival (Berry et al, 1985;Covaleski and Dirsmith, 1988;Nahapiet, 1988;Covaleski et al, 1993). For small firms that struggle to finance their growth and to obtain resources, formal management controls are likely to be an important part of being taken seriously by external parties (Stone, 1989;Stone and Brush, 1996;Lounsbury and Glynn, 2001).…”

Section: Attributes Of Rapid Growthmentioning

confidence: 99%

Balancing the management control package of small, rapidly growing firms in turbulent environments

Nilsson

2010

IJESB

View full text Add to dashboard Cite

Abstract:The thesis of this paper is that the management control package of small rapidly growing firms in turbulent environments needs to be based on a dynamic conception of balance. While many contemporary management control frameworks endorse balance as a guiding principle for management control, its specific features receive little attention and implicit conceptions are static. This paper first characterises the balance of a control package in terms of situational requirements on component selection, component weight, relations and coherence. The paper then examines the consistency between balance in contemporary management control frameworks and implications for balance derived from firm attributes. The conclusions suggest that by considering balance as a state and as an act, acknowledging requirements of balance and imbalance, and recognising situational and temporal dimensions of balance, we may advance the boundaries of management control research.

show abstract

Section: Attributes Of Rapid Growthmentioning

confidence: 99%

Balancing the management control package of small, rapidly growing firms in turbulent environments

Nilsson

2010

IJESB

View full text Add to dashboard Cite

show abstract

“…As rational economic actors corporations exploit these opportunities to maximize their after-tax global income (Emmanuel, 1999). Tax incentives and subsidies are often dependent upon calculations of costs and revenues, but such concepts are highly malleable and are open to competing interpretations (Buchanan and Thirlby, 1973;Berry et al, 1985). Costs, for example, consist of a variety of components, including overhead allocations, which are arbitrary and -incorrigible‖ (Thomas, 1969(Thomas, , 1974.…”

Section: A Perspective On Transfer Pricingmentioning

confidence: 99%

The dark side of transfer pricing: Its role in tax avoidance and wealth retentiveness

Sikka

Willmott

2010

Critical Perspectives on Accounting

232

157

View full text Add to dashboard Cite

In conventional accounting literature, ‗transfer pricing' is portrayed as a technique for optimal allocation of costs and revenues amongst divisions, subsidiaries and joint ventures within a group of related entities. Such representations of transfer pricing simultaneously acknowledge and occlude how it is deeply implicated in processes of wealth retentiveness that enable companies to avoid taxes and facilitate the flight of capital. A purely technical conception of transfer pricing calculations abstracts them from the politico-economic contexts of their development and use. The context is the modern corporation in an era of globalized trade and its relationship to state tax authorities, shareholders and other possible stakeholders. Transfer pricing practices are responsive to opportunities for determining values in ways that are consequential for enhancing private gains, and thereby contributing to relative social impoverishment, by avoiding the payment of public taxes. Evidence is provided by examining some of the transfer prices practices used by corporations to avoid taxes in developing and developed economies. Institution has argued that -transfer pricing is used by virtually every multinational corporation to shift profits at will around the globe‖ (Baker, 2005, p. 30). KeywordsThe mobilization of transfer pricing for tax avoidance 2 , and sometimes evasion, is largely invisible to the public and is difficult and expensive for regulatory authorities to detect. There is indeed a complex game involving numerous actors -corporations, accountants, lawyers, consultants, governments, tax authorities, multinational agencies (e.g. OECD), NGOs and so on -engaged in establishing and revising the rules of the game with regard to which method(s) of calculating prices is acceptable, and also developing and detecting ways of manipulating, escaping or subverting these rules and methods. As means of enhancing divisional, segmental, product and global profits, the unimpeded use of transfer pricing matters to stock markets as earnings, dividends, share prices and return on capital are all affected. It also matters to company executives because their financial rewards are frequently linked to corporate earnings. Transfer pricing practices matter to the state because they affect the taxes 4 that it can levy upon corporate profits to finance public goods and thereby secure legitimacy.Business advisers claim that -transfer pricing continues to be, and will remain, the most important international tax issue facing MNEs‖ (Ernst & Young, 2006, p. 5 Transfer pricing is a well-established topic in accounting textbooks, but the use of transfer pricing 4 to avoid taxes and shift capital has attracted little sustained interest (Sikka et al., 2007). The bourgeoning corporate social responsibility literature is largely silent on the role of transfer pricing in tax avoidance and the flight of capital (Christensen and Murphy, 2004). A considerable body of literature draws attention to the economic theories underlying transfer pric...

show abstract

“…For authors was an increasing recognition of a gap between theory and practice (SCAPENS, 1984;BERRY et al, 1985). However, this was not entirely new in mainstream management accounting research; economic oriented approaches were well established and in the early 1980s agency theory were beginning to be applied to the study of management accounting.…”

Section: Introductionmentioning

confidence: 99%

Untitled

Almeida

Panhoca²

2009

RCC, Rev. Contab. Control.

View full text Add to dashboard Cite

SUMMARY:This paper is the report from the Editors on the first year of RC&C -Revista de Contabilidade e Controladoria (Journal Accounting and Comptrollership). It describes the diversity of papers which have been published in the journal and finally, it calls for more papers to explore management accounting and its nature in new organizational forms, both within and beyond the existing organizational boundaries.

show abstract

Management control in an area of the NCB: Rationales of accounting practices in a public enterprise

Cited by 221 publications

References 10 publications

Balancing the management control package of small, rapidly growing firms in turbulent environments

Balancing the management control package of small, rapidly growing firms in turbulent environments

The dark side of transfer pricing: Its role in tax avoidance and wealth retentiveness

Untitled

Contact Info

Product

Resources

About