The construction of calculative expertise: The integration of corporate governance into investment analyses by sell-side financial analysts

Tan, Zhiyuan Simon

doi:10.1016/j.aos.2014.05.003

Cited by 32 publications

(37 citation statements)

References 51 publications

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“…Research into IPOs is diverse and spans multiple disciplines. One key insight is that following the IPO, firms fall under public scrutiny (Reuer and Shen, 2003) and become subject to pressures imposed by capital market participants, such as financial analysts, fund managers, equity brokers, and business journalists (Fogarty and Rogers, 2005;Kraus and Strömsten, 2012;Roberts et al, 2006;Tan, 2014). Specifically, top managers in listed companies are expected to be more focused on short-term financial performance, particularly quarterly earnings, than they were prior to stock market listing.…”

Section: Ipos and Management Accountingmentioning

confidence: 99%

IPOs, institutional complexity, and management accounting in hybrid organisations: A field study in a state-owned enterprise in China

Dai

Tan

Tang

et al. 2017

Management Accounting Research

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An initial public offering (IPO) is an important milestone for an organisation. In addition to pressures from capital markets unavoidably imposed onto newly listed firms, other beliefs, rationales, and prescriptions deriving from the institutional environment where they operate may prevail and guide organisational practices. Drawing on the perspective of institutional logics, this paper investigates the implementation of management accounting (MA) within firms that face multiple institutional demands following an IPO. By studying a Chinese state-owned enterprise (SOE) that was recently listed, this paper demonstrates that the interplay of multiple logics, including State, corporate, and capital market logics, shapes the manner in which MA operates. This study also reveals that different MA practices tend to encompass institutional demands in diverse ways and to varying degrees. However, regardless of whether MA practices are implemented to simply respond to plural institutional expectations, connect different organising principles, or balance elements of multiple logics, they function as hybrid practices, helping to maintain the hybrid nature of the firm as a 'listed SOE'. This study makes two main contributions. First, it extends the literature on IPOs by providing an in-depth analysis of how MA is implemented and why it functions in particular ways in firms following an IPO, and by exploring the influences of a wider set of beliefs, rationales, and expectations on the MA practices of newly listed companies. Second, by drawing on the perspective of institutional logics, this paper extends prior research addressing the dynamics between institutional complexity and MA adoption by individual organisations and enriches our understanding of how hybrid organisations may maintain their hybridity through the deployment of MA practices.

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Section: Ipos and Management Accountingmentioning

confidence: 99%

IPOs, institutional complexity, and management accounting in hybrid organisations: A field study in a state-owned enterprise in China

Dai

Tan

Tang

et al. 2017

Management Accounting Research

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“…Where CSR focuses on the behavior or strategy of a firm, CSP is the result or the outcome of this behavior (Wood 2010). Increased demand for CSP is, among others, observable through attention from investors for topics such as climate change and ethical issues (David et al 2007) aiming to identify the long-term investment opportunities and risks for firms (Herremans et al 1993;Luo et al 2014;Tan, 2014). The results of such developments have led to the creation of new accounting, control, and reporting systems to respond to CSR-related information both internally and externally (Bebbington and Larrinaga 2014;Gray 2010;Henri and Journeault 2010) and to the creation of various sustainability indices.…”

Section: Corporate Social Performancementioning

confidence: 99%

Do Corporate Social Performance Targets in Executive Compensation Contribute to Corporate Social Performance?

2016

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To deal with potential conflicts between the triple-bottom-line expectations of investors and the performance of executives, firms can use incentives by integrating corporate social performance (CSP) targets into executive compensation. No evidence yet exists that CSP targets in executive compensation actually lead to an improvement of CSP results. Using a panel data set of 400 firms for the years 2008-2012 leading to 1846 firm-year observations, the relationships between CSP targets and CSP results and CSP improvements are analyzed. The results show that (a) the level of CSP has no effect on the use of CSP targets, (b) the use of CSP targets in general does not automatically lead to better CSP results, and (c) the use of quantitative, hard CSP targets is an effective way to improve CSP results, especially to lower CSP weaknesses.

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“…This kind of gradual 'assemblage' of calculative ideas and devices is the foundation on which expertise is built (Tan 2014). University rankers gathered their own datasets and developed different instruments suited to different audiences.…”

Section: Data Relevance and Credibilitymentioning

confidence: 99%

The building of weak expertise: the work of global university rankers

Lim

2017

High Educ

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University rankers are the subject of much criticism, and yet they remain influential in the field of higher education. Drawing from a two-year field study of university ranking organizations, interviews with key correspondents in the sector, and an analysis of related documents, I introduce the concept of weak expertise. This kind of expertise is the result of a constantly negotiated balance between the relevance, reliability, and robustness of rankers' data and their relationships with their key readers and audiences. Building this expertise entails collecting robust data, presenting it in ways that are relevant to audiences, and engaging with critics. I show how one ranking organization, the Times Higher Education (THE), sought to maintain its legitimacy in the face of opposition from important stakeholders and how it sought to introduce a new "Innovation and Impact" ranking. The paper analyzes the strategies, methods, and particular practices that university rankers undertake to legitimate their knowledge-and is the first work to do so using insights gathered alongside the operations of one of the ranking agencies as well as from the rankings' conference circuit. Rather than assuming that all of these trust-building mechanisms have solidified the hold of the THE over its audience, they can be seen as signs of a constant struggle for influence over a skeptical audience.

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The construction of calculative expertise: The integration of corporate governance into investment analyses by sell-side financial analysts

Cited by 32 publications

References 51 publications

IPOs, institutional complexity, and management accounting in hybrid organisations: A field study in a state-owned enterprise in China

IPOs, institutional complexity, and management accounting in hybrid organisations: A field study in a state-owned enterprise in China

Do Corporate Social Performance Targets in Executive Compensation Contribute to Corporate Social Performance?

The building of weak expertise: the work of global university rankers

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