UK Shareholders' Lost Access to Management Information

Pratt, Ken; Storrar, A. Colin

doi:10.1080/00014788.1997.9729545

Cited by 7 publications

(4 citation statements)

References 9 publications

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“…As one of the most important corporate governance mechanisms, ownership structure is likely to influence corporate information disclosure in a number of ways. For example, given dispersed ownership structures, such as those in US and UK firms, there is a high demand for public disclosure of high-quality corporate information for the purpose of monitoring the management (Pratt and Storrar 1997). In contrast, German and French firms typically have a concentrated ownership structure, and controlling shareholders (blockholders) rely on insider monitoring mechanisms to obtain corporate information.…”

Section: Literature Review and Hypotheses Developmentsmentioning

confidence: 99%

Ownership structure and analysts’ forecast properties: a study of Chinese listed firms

Lee

2016

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Purpose The purpose of this paper is to investigate the association between ownership structure and the properties of analysts’ forecasts in China’s unique corporate setting. Design/methodology/approach Multiple regression models were used to examine the influence of ownership structure mechanisms on analysts’ forecast properties for listed Chinese firms during the period 2008-2012. Findings The paper finds that analysts’ forecast accuracy is higher for listed firms with high levels of foreign ownership and managerial ownership. However, the complex pyramidal ownership structure could make corporate information less transparent and then increase the complexity of forecasting; hence, it results in less precise analysts’ forecasts. Interestingly, the relationship between state ownership and analysts’ forecast properties appears to be non-linear (an inverted U-shape), and the inflection point at which the relationship becomes negative occurs at state ownership over 45 per cent. Originality/value To the best of the author’s knowledge, this paper is the first to investigate the influence of ownership structure mechanisms on the properties of analysts’ forecasts in an emerging market, and the findings provide some insight on how the properties of analysts’ forecast might be shaped by certain ownership and control features in the context of concentrated state ownership and complex pyramidal ownership structure.

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Section: Literature Review and Hypotheses Developmentsmentioning

confidence: 99%

Ownership structure and analysts’ forecast properties: a study of Chinese listed firms

Lee

2016

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“…In particular, they often focus on past results and short‐term objectives, which do little to monitor the consistency of medium and long‐term goals at different levels within network organisations. As a result the gap between the general target of owner/shareholders' wealth and the goals actually pursued within organisations becomes wider (Jensen and Meckling, 1976; Fama, 1980; Fama and Jensen, 1983; Jensen, 1993; Douglas, 1992; Watson and Head, 1998), as indicated in Figure 1, where the two “tiers” of shareholders to corporate (Frankforter et al , 2000; Pratt and Storrar, 1997) and area/corporate to unit principal/agent problem (Young et al , 2000; Rindova, 1999) are also shown.…”

Section: Literature Reviewmentioning

confidence: 99%

Management accounting and corporate management: insights into multinational hotel companies

Mongiello

Harris²

2006

International Journal of Contemporary Hospitality Management

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PurposeThe aim of this paper is to provide insights into the links between managerial accounting, as a tool for monitoring and governing multinational hotel companies, and corporate management approaches.Design/methodology/approachThe paper builds upon an extensive survey of general managers previously published by the authors, followed up with interviews and an in‐depth analysis of different management scenarios in the context of multinational hotel companies.FindingsThis paper's findings suggest that “management by values” appears to be particularly adapted to multinational hotel companies, because of their organisation features, i.e. a network spread in different environments, and partially shapes the management accounting choices of performance indicators at various levels in the organisation.Research limitations/implicationsThe limitations of this research would depend on the limited amount of data collected, i.e. 13 interviews, of which eight are analysed, if there were any attempt to generalise the findings.Practical implicationsImplications are both theoretical and practical: the former refer to avenues of further research being opened within this paper, the latter refer to the suggestion that managers in multinational hotel companies might begin to question their own organisations and consider reflecting upon their management approach, in light of the insights provided in this paper.Originality/valueThis paper fits with the established literature on management accounting, but also points towards new connections with the corporate management literature.

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“…The private Acts of Parliament that established and regulated the canal companies said little about the financial documents that they should produce and, until the 1830s, “rarely made any provision for the publication or audit of financial statements”. Instead, they tended to stress the rights of shareholders to inspect the company's books (Pratt and Storrar, 1997, p. 207; Forrester, 1998, p. 65) and many specified that company books should be available at shareholders' meetings for that purpose (Edwards, 1989, p. 159). The demarcation between information available to management, and that disclosed to shareholders, between record‐keeping and financial reporting, was therefore less clear‐cut in the late eighteenth and early nineteenth centuries than in the modern era.…”

Section: The Data Set Of Canal Company Financial Statementsmentioning

confidence: 99%

The transition to financial capitalism and its implications for financial reporting

Arnold

McCartney

2008

Accounting, Auditing &Amp; Accountability Journal

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PurposeThere are two main alternative explanations in the literature for the patterns of financial reporting during the period of the British Industrial Revolution (BIR). Rob Bryer sees the new social relations of production in which manufacturing entrepreneurs strove to increase the productivity of wage‐labour as leading to a distinct capitalist “calculative mentality”, focused on the return on capital employed; Dick Edwards argues from agency precepts that financial reporting emerged with the transition from “industrial” to “financial capitalism”. This paper aims to reappraise these theorisations using new archival evidence.Design/methodology/approachCanals, the crucial transport network during the BIR, were owned by limited liability companies financed by outside investors, with clear separation of ownership and control, yet were not capitalist in Bryer's sense because their profits came from a form of rent (tolls on freight) not from the exploitation of wage‐labour. The paper reviews the financial statements of seven major English canals from the 1770s to the 1850s, and uses these findings as a basis for appraising the above‐mentioned theories.FindingsThe financial statements of English canal companies do not distinguish profit or enable users to calculate rates of return on capital employed and so assess the performance of management. This sharply conflicts with agency theory but is consistent with Bryer's thesis.Originality/valueThe paper contributes to the authors' understanding of how and why corporate financial reporting emerged, and the relationship between this process and the transition to the capitalist mode of production.

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UK Shareholders' Lost Access to Management Information

Cited by 7 publications

References 9 publications

Ownership structure and analysts’ forecast properties: a study of Chinese listed firms

Ownership structure and analysts’ forecast properties: a study of Chinese listed firms

Management accounting and corporate management: insights into multinational hotel companies

The transition to financial capitalism and its implications for financial reporting

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