Purpose-The purpose of this paper is to construct and propose a definition for intangibles derived from the resource-based view (RBV) of the firm for use in academic research and practical applications. Design/methodology/approach-Intangibles are defined as a subset of corporate resources. In this paper, various definitions for intangibles are tested against the RBV framework. Findings-The majority of definitions in the extant literature are (implicitly or explicitly) in synchronization with the RBV. Thus, it is possible to find and propose a common definition for intangibles. Research limitations/implications-Some researchers argue that the field is still in its embryonic stages and thus the concepts might still be too fresh in order to find a stable common definition. Practical implications-The paper offers a conceptual lens through which one can clearly link intangibles to strategy and offers a proposed definition of intangibles that incorporates a meta-review of the literature. Originality/value-The paper shows that it is in fact possible to accommodate various definitions of intangibles under one common framework and propose a unified characterization.
Purpose-This paper aims to investigate the association between the level of voluntary disclosure and cost of equity capital (COEC). Design/methodology/approach-Two disclosure indices following Botosan and Hail are developed and applied in an OLS regression on 95 listed companies from Austria, Germany, Sweden, and Denmark; the indices are defined according to the temporal context (historical, forward-oriented) of information provided in annual reports. Findings-An expected negative relationship is found between the level of forward-oriented information and COEC, and an unexpected positive relationship is found between the level of historical information and COEC. Research limitations/implications-The sample is restricted to 95 listed companies in 2005. The disclosure index and COEC are not directly observable, and thus rely on constructs. Methodological drawbacks might include an endogeneity bias as well as investors not having homogeneous expectations and knowledge about capital markets. Practical implications-Traditional financial reporting models might not provide enough information in order to reduce information asymmetry and COEC. The findings provide insight into the impact of a required increased level of additional corporate information on corporate metrics, especially to standard setters and academic researchers as well as practitioners. Originality/value-The current research contributes in three ways: the application of a disclosure index on an international sample; the employment of a new approach to computing COEC, explicitly matching input variables to a pre-specified estimation date; and the provision of evidence on the different impact of the temporal context of voluntarily disclosed information.
This article examines internal accounting practices at Whitbread & Company from c. 1890 to 1925. At this time, there was an increasing interest in cost accounting, but there is little detailed extant research on general internal accounting practices of firms. The brewing sector, we suggest, is a potentially fruitful realm to further our knowledge of this time. Drawing on the Whitbread brewery archival records, we chart the internal accounting practices of the company. Our findings reveal a stable set of accounting practices, focused mainly on bookkeeping, although the firm’s auditor produced some reports which may have been useful for management decision-making. We argue that these practices were highly institutionalised and seemingly resistant to external forces present in the company’s environment.
Investments in power generation in Great Britain c.1960-2010 -The role of accounting and the financialisation of investment decisions. Abstract PurposeThis paper explores the increasing role of financialisation on investment decisions in the power generation industry in Great Britain (GB). Such decisions affect society, and the relative role of financialisation in these macro-levels decisions has not been explored from a historical perspective. Design and methodThe paper draws on historical material and interview data. Specifically, we use an approach inspired by institutional sociology drawing on elements of Scott's (2014) pillars of institutions. Applying concepts stemming from regulative and normative pressures, we explore changes in investments over the analysis period to determine forces which institutionalised practices -such as accounting -into investment in power generation. FindingsInvestments in electricity generation have different levels of public and private participation.However, the common logics that underpin such investment practices provide an important understanding of the political-economics and institutional change in the UK. Thus, the heightened use of accounting in investment has been, to some extent, a contributory factor to the power supply problems now faced by the British public. Originality/valueThis paper contributes to prior literature on the effects of financialisation on society, adding power generation/energy supply to the many societal level issues already explored. It also provides brief but unique insights into the changing nature of the role of accounting in an industry sector over an extended timeframe. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 IntroductionThe financialisation of energy policy implies increased use of market mechanisms, with the financial sector and financial actors (such as accountants) playing a critical role in the decision making process of investments in power generation assets. However, with Great Britain (GB) currently witnessing an investment hiatus, should an essential commodity such as electricity, be subject to values and ideology of this phenomenon? In other words, should investments in power stations be financialised 1 ? With the electricity industry struggling to secure investment, this paper challenges the paradigm of neo-liberal economic policy which is supported by financialisation for the energy sector. To be specific, this paper examines the increasing impact of accounting (with those using accounting as the financial actors with financial motive in the financialisation process) on such decisions. We do this by reflecting on historical developments in GBs generation market from circa 1960-2010 2 .Electricity is essential to support business and households, and, thus, so is maintaining a secure production of electricity. In power generation, the importance o...
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