In this paper, we construct a complementary financialized business model of SME bio-pharma that reveals how the product innovation and development process conjoins with speculative forces in capital markets. To conceptualise this descriptive business model we employ three organising elements: narratives about pipeline progress that may (or may not) lead to additional funding from equity investors or other investing partners, capital market conditions that impact on the supply of funding and market valuations and the variable motivations of equity investors who are not in a development marathon but a relay race anxious to pass on ownership and extract higher returns on invested capital through realised market value. Bio-pharmas are, in effect, constituted as investment portfolios of innovations where products in pipeline and firms trade for shareholder value. In this speculative innovation, capital market liquidity business model complementary narratives and favourable capital market conditions are required to keep it all going.
This paper contributes to the research in accounting and the debate about the nature of carbon footprint reporting for society. This paper utilises numbers and narratives to explore changes in carbon footprint using UK national carbon emissions data for the period 1990 to 2009, six years (2006-2011) of carbon emissions data for the FTSE 100 group of companies and a case study that focuses on the UK mixed grocery sector. Our argument is that existing approaches to framing carbon disclosure generate malleable, inconsistent and irreconcilable numbers and narratives. In this paper we argue for an alternative framing of carbon disclosure informed by a reporting entities business model. Specifically, we suggest, that a reporting entity disclose its carbon-material stakeholder relations. This alternative, we argue, would increase the visibility of carbon generating stakeholder relations and avoid some of the difficulties and arbitrariness associated with framing carbon disclosure around a reporting entity boundary where judgements have to be made about responsibility and operational control.
This article considers how permissive regulatory conditions helped change the size and scope of the US mortgage market. Asset backed securitization facilitated an expansion of the US mortgage market and modified the structure of the value chain within which financial assets, risk and liquidity were managed. New sophisticated mortgage products, indulgent lending practices, loose credit assessment and flimsy documentation increased the probability of mortgage default in an economic downturn. US banks were not in a position to absorb mark to market losses on mortgage assets and goodwill impairment resulting from a credit crunch because they operate with narrow profit margins and a limited equity cushion in the balance sheet. This article questions the viability and sustainability of this banking business model.
Original article can be found at: http://www.sciencedirect.com/science/journal/01559982 Copyright Elsevier Ltd. DOI: 10.1016/j.accfor.2008.08.001This paper constructs an account of how financialization is directing strategy in the S&P 500. Financialization describes how changes in US accounting regulations require firms to account for the market value of capital market transactions where corporate strategy is not simply concerned with delivering value creation but also reacting to value absorption in an era of shareholder value. Financialization is directing strategy and arbitrage to modify stakeholder financial settlements where an increased share of income is extracted as surplus cash and more of this cash from operations is being distributed to shareholders. Share buy-backs account for a substantial increase in the share of corporate cash distributed to shareholders in the S&P 500 which, we argue, reflects a strategic process of value creation and value absorption
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