The Discursive Management of Financial Risk Scandals: The Case of Wall Street Journal Commentaries on LTCM and Enron

Ailon, Galit

doi:10.1007/s11133-012-9217-5

Cited by 15 publications

(15 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…As a result, participants do not question the conceptual edifice that sustains risk management, rather they enhance it. As maintained by Ailon (2012), while formal discourses of risk management seem to work forward, to a great extent they work backward; when an unforeseen event happens, then the analytical gaze is centered on identifying all the elements of the case that involved actors could have and thus should have recognized in order to prevent the situation from happening. 13 Deficiencies in establishing proper control and procedures constitute one of the main lines of thinking developed by interviewees when making sense of aberration cases.…”

Section: The Power Of Hindsight In Restoring Credibilitymentioning

confidence: 99%

“…Various authors point out that the credibility of risk management is not seriously questioned in spite of inherent weaknesses and the regular occurrence of corporate collapses (Ailon, 2012;Huber & Scheytt, 2013;Power, 2009). 1 In this paper, our empirical focus is on the thought processes by which corporate boardroom actors maintain their confidence in the reliability of the risk management apparatus despite being exposed to a continuous flow of events and aberrations pointing to risk management limitations -i.e.…”

Section: Introductionmentioning

confidence: 99%

“…Our investigation brings to light a range of sense-making approaches that boardroom actors, especially board members and consultants, employ to maintain their belief in the credibility of risk management in the face of adversity. As maintained by Ailon (2012), the enduring belief in the credibility of risk management is highly dependent on the sense-making mechanisms used in the business community to explain failure and overcome doubt. In other words, reproducing the belief in risk management's credibility implies significant conceptualizing and sense-making endeavors.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Construction of Risk Management Credibility Within Corporate Boardrooms

Gendron¹,

Brivot²,

Guénin-Paracini³

2015

European Accounting Review

View full text Add to dashboard Cite

Despite various corporate collapses over the last decades, risk management is increasingly influential across organizations worldwide, as if the apparatus' credibility was impermeable to scandals that, from critical angles, cast doubt on its efficacy. Relying on a cultural perspective of analysis highlighting the range of social processes that protect prevailing institutions' legitimacy from aberrations, we examined the sense-making approaches employed by corporate boardroom actors to maintain their confidence in the credibility of the risk management apparatus despite being exposed to a continuous flow of corporate failures pointing to risk management efficacy limitations. Specifically, we conducted 35 interviews with corporate board stakeholders, mostly board members and corporate consultants. Our analysis indicates that actors involved in risk management processes tend to interpret aberration cases through perspectives that put the blame on some implementation deficiency, thereby ensuring that risk management's core assumptions are not questioned. These perspectives point to a defensive system of thought grounded in the director and consultancy communities, whose main referents are subject to intense work and re-conceptualization in the aftermath of aberrations, thereby providing community members with the means to make sense of the frictions of organizational life in ways that maintain the legitimacy of the risk management apparatus.

show abstract

Section: The Power Of Hindsight In Restoring Credibilitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Construction of Risk Management Credibility Within Corporate Boardrooms

Gendron¹,

Brivot²,

Guénin-Paracini³

2015

European Accounting Review

View full text Add to dashboard Cite

show abstract

“…Lastly, the research interests in this area include the interaction between political scandals and other discourses and concept-formation processes (Kepplinger et al,. 2012;Ailon, 2012;Renwick et al, 2011;Kepplinger, 2001). …”

Section: Scandal and Communicationmentioning

confidence: 99%

Researching corruption scandals in Serbia: New approaches and challenges

Zurnić¹

2014

Soc pregled

View full text Add to dashboard Cite

“…Estos escándalos han afectado economías enteras (Ailon, 2012). La sucesión de escándalos en la industria bancaria ha generado preocupación entre los reguladores.…”

Section: Introductionunclassified

Bancos en Brasil y España: factores explicativos de revelación del capital relacional

Rodríguez

Macagnan

2015

View full text Add to dashboard Cite

Este artículo analiza la revelación voluntaria de informaciones sobre capital relacional del negocio y los factores explicativos, de los bancos inscritos en las bolsas de valores de Brasil y España. Este estudio se basa en la existencia de la asimetría de información en el mercado de capitales, debido a la diferencia entre el precio de mercado y el valor contable de estas organizaciones. La teoría de la agencia plantea que revelar informaciones voluntarias reduce los costes de agencia. La teoría del coste del propietario presupone que revelar informaciones genera costes. La necesidad de transparencia informativa surge precisamente por las presiones del mercado. En este sentido, este trabajo está orientado a suscitar interés entre los agentes por revelar información voluntaria, para reducir el problema de la información asimétrica en el mercado de capitales. Este estudio analiza la revelación de 66 indicadores sobre informaciones representativas del capital relacional del negocio de 27 bancos, en 162 informes anuales, durante el período 2006-2011. La muestra está conformada por bancos que presentan sus informes anuales completos en la página web durante el período de estudio. Se construyó una matriz para cada banco, con una columna para los indicadores y una columna para cada año, con el número uno si el indicador era revelado y cero, si no era revelado. Se hizo un análisis descriptivo para examinar el nivel de revelación por país. Se utilizó la técnica de regresión lineal múltiple, por el método de mínimos cuadrados con datos de panel para su análisis. Se concluye que entre mayor sea el tamaño del banco, mayor rentabilidad tenga, más endeudado esté y más años de existencia tenga, mayor será la revelación de informaciones voluntarias sobre intangibles relativos al capital relacional.

show abstract

The Discursive Management of Financial Risk Scandals: The Case of Wall Street Journal Commentaries on LTCM and Enron

Cited by 15 publications

References 20 publications

The Construction of Risk Management Credibility Within Corporate Boardrooms

The Construction of Risk Management Credibility Within Corporate Boardrooms

Researching corruption scandals in Serbia: New approaches and challenges

Bancos en Brasil y España: factores explicativos de revelación del capital relacional

Contact Info

Product

Resources

About