Advertisement

Corporate governance and financial control

  • Mahmoud Ezzamel

Abstract

The discipline of financial control has undergone major developments in recent years and this has rendered it more fluid and less susceptible to precise definition. These developments have in part been prompted by the increased intrusion of financial controls into arenas in which they had previously played only a minor role. For example, the last decade in the UK witnessed the emergence of numerous financial initiatives aimed at public sector organizations, such as the National Health Service, central government, local government, universities, schools, and military organizations. These initiatives seek to emulate the private sector achievements (i.e. economic efficiency) perceived to be associated with financial control regimes in the public sector. Moreover, the economic climate of the 1980s, characterized by increased levels of international competition, deregulation of major industries, and the demands posed by modern work and information technologies, has led to greater emphasis on the use of financial control in the private sector.

Keywords

Corporate Governance Transaction Cost Governance Structure Financial Control Normative Requirement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Argyris, C. (1977) Organisational Learning and Management Information Systems, Accounting, Organizations and Society, 2 (2), 113–23.CrossRefGoogle Scholar
  2. Boisot, M. and Child, J. (1988) The Iron Law of Fiefs: Bureaucratic Failure and the Problem of Governance in the Chinese Economic Reforms, Administrative Science Quarterly, 33, 507–27.CrossRefGoogle Scholar
  3. Bourn, M. and Ezzamel, M. (1986) Organisational Culture in Hospitals in the National Health Service, Financial Accountability and Management, 2 (3), Autumn, 203–25.CrossRefGoogle Scholar
  4. Bourn, M. and Ezzamel, M. (1987) Budgetary Devolution in the National Health Service and Universities in the United Kingdom, Financial Accountability and Management, 3 (1) Spring, 29–45.CrossRefGoogle Scholar
  5. Brown, W.B. (1984) Firm like behaviour in markets — the administered channel, International Journal of industrial Organization, 2, 263–76.CrossRefGoogle Scholar
  6. Buchanan, J.M. et al. (1978) The Economics of Politics, Institute of Economic Affairs, London.Google Scholar
  7. Buckley, P.J. (1988) Organisational firms and multinational companies, in Internal Organisation, Efficiency and Profit, (eds S. Thompson and M. Wright), Philip Allan, Oxford 127–44.Google Scholar
  8. Coase, R.H. (1937) The Nature of the Firm, Economica, 4, 386–405.CrossRefGoogle Scholar
  9. Chandler, A.D. (1977) The Visible Hand: The managerial revolution in American business, Belknap Press, Cambridge, MA.Google Scholar
  10. Chandler, A.D. (1980) The United States: Seedbed of Managerial Capitalism, in Managerial Hierarchies (eds A.D. Chandler and H. Daems), Harvard University press, 9–40.Google Scholar
  11. Dahlman, C.J. (1979) The Problem of Externality, Journal of Law and Economics, April, 141–62.Google Scholar
  12. Downs, A. (1967) Inside Bureaucracy, Little Brown, Boston.Google Scholar
  13. Emmanuel, C.R. and Otley, D.T. (1985) Accounting for Management Control, Van Nostrand Reinhold, UK.Google Scholar
  14. Ezzamel, M. and Bourn, M. (1990) The Roles of Accounting Information Systems in an Organization Experiencing Financial Crisis, Accounting, Organizations and Society, 15 (5), 399–424.CrossRefGoogle Scholar
  15. Ezzamel, M., Hoskin, K. and Macve, R. (1990) Managing it all by numbers: a review of Johnson and Kaplan’s Relevance Lost, Accounting and Business Research, 20 (78), 153–66.CrossRefGoogle Scholar
  16. Ezzamel, M. and Hart, H. (1987) Advanced Management Accounting: An organisational emphasis, Cassell.Google Scholar
  17. Ezzamel, M. and Willmott, H. (1991) Corporate governance and financial accountability: the new public sector, Paper presented at The New Public Sector?, workshop on Change Notions of Accountability in the UK Public Sector, The London School of Economics and Political Science, May.Google Scholar
  18. Fama, E.F. and Jensen, M.C. (1983a) Separation of Ownership and Control, Journal of Law and Economics, June, 301–25.Google Scholar
  19. Fama, E.F. and Jensen, M.C. (1983b) Agency Problems and Residual Claims, Journal of Law and Economics, June, 327–49.Google Scholar
  20. Flamholtz, D.T. (1983) The markets and hierarchies framework: a critique of the model’s applicability to accounting and economic development, Accounting, Organizations and Society, 8 (2/3), 147–51.CrossRefGoogle Scholar
  21. Fox, A. (1974) Beyond Contract: Work, power and trust relations, Faber and Faber, London.Google Scholar
  22. Hilton, K. (1975) Control Systems for Social and Economic Management, An Inaugural Lecture, University of Southampton, (also in this volume, pp. 27–40).Google Scholar
  23. Hopwood, A.G. (1980) The Organisational and Behavioural Aspects of Budgeting and Control, in Topics in Management Accounting, (eds J. Arnold, B. Carsberg and R. Scapens), Philip Allan, Oxford, 221–40.Google Scholar
  24. Imai, K. and Itami, H. (1984) Interpenetration of organization and market: Japan’s firm and market in comparison with the US, International Journal of Industrial Organization, 2, 285–310.CrossRefGoogle Scholar
  25. Jensen, M.C. and Meckling, W.H. (1976) Theory of the firm: managerial behaviour, agency costs and ownership structure, Journal of Financial Economics, 3, October, 305–60.CrossRefGoogle Scholar
  26. Johnson, H.T. and Kaplan, R.S. (1987) Relevance Lost, Harvard Business School Press.Google Scholar
  27. Jönsson, S. and Grönlund, A. (1988) Life with a sub-contractor: new technology and management accounting, Accounting, Organizations and Society, 3 (5), 512–32.Google Scholar
  28. Kristensen, O.P. (1980) The logic of political-bureaucratic decision making as a cause of government growth, European Journal of Political Research, 8, 249–53.CrossRefGoogle Scholar
  29. Lapsley, I. (1992) Reforming Financial Control in the NHS — Or is the NHS a ‘Deviant Organisation’?, this volume, pp. 233–50.Google Scholar
  30. Meyer, J.W. and Rowan, B. (1977) Institutionalized organizations: formal structure as myth and ceremony, American Journal of Sociology, 83, 340–63.CrossRefGoogle Scholar
  31. Mintzberg, H. (1979) The Structuring of Organizations, Prentice-Hall, Englewood Cliffs, NJ.Google Scholar
  32. Ouchi, W.G. (1977) The relationship between organizational structure and organizational control, Adiminstrative Science Quarterly, 22, March, 95–113.CrossRefGoogle Scholar
  33. Ouchi, W.G. (1979) A conceptual framework for the design of organizational control mechanisms, Management Science, 25, September, 833–48.CrossRefGoogle Scholar
  34. Ouchi, W.G. (1980) Markets, bureaucracies and clans, Administrative Science Quarterly, 25, 129–41.CrossRefGoogle Scholar
  35. Ouchi, W.G. (1981) Theory Z, Addison Wesley.Google Scholar
  36. Ouchi, W.G. and Price, R.L. (1978) Hierarchies, clans and theory Z: a new perspective on organizational development, Organisational Dynamics, Autumn, 25–44.Google Scholar
  37. Robins, J.A. (1987) Organizational economics: notes on the use of transaction-cost theory in the study of organizations, Administrative Science Quarterly, 32, 62–86.CrossRefGoogle Scholar
  38. Spicer, B.W. and Ballew, V. (1983) Management accounting systems and the economics of internal organization, Accounting, Organizations and Society, 8 (1), 73–96.CrossRefGoogle Scholar
  39. Tomkins, C.R. (1980) Financial planning and control in large companies, in Topics in Management Accounting (eds J. Arnold, B. Carsberg and R. Scapens), Philip Allen, Oxford, pp. 241–61.Google Scholar
  40. Tomkins, C.R. and Colville, I. (1992) Financial control and devolved management in central government, this volume, pp. 255–80.Google Scholar
  41. Tullock, G. (1976) The Vote Motive, Institute of Economic Affairs, London.Google Scholar
  42. Weber, M. (1958) The Protestant Ethic and the Spirit of Capitalism, Charles Scribner, New York.Google Scholar
  43. Weber, M. (1978) Economy and Society, University of California, Berkeley.Google Scholar
  44. Wilkins, A.L. and Ouchi, W.G. (1983) Efficient cultures: exploring the relationship between culture and organizational performance, Administrative Science Quarterly, 28, 468–81.CrossRefGoogle Scholar
  45. Williamson, O.E. (1970) Corporate Control and Business Behaviour, Prentice-Hall, Englewood Cliffs, NJ.Google Scholar
  46. Williamson, O.E. (1975) Markets and Hierarchies: Analysis and antitrust implications, Free Press, New York.Google Scholar
  47. Williamson, O.E. (1981) The modern corporation: origins, evolution, attributes, Journal of Economic Literature, XIX, December, 1537–68.Google Scholar
  48. Williamson, O.E. and Ouchi, W.G. (1981) The Markets and Hierarchies and Visible Hand Perspectives, in Perspectives on Organization Design and Behaviour, (eds A.H. Van de Ven and W. F. Joyce), John Wiley & Sons, 347–70.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1992

Authors and Affiliations

  • Mahmoud Ezzamel

There are no affiliations available

Personalised recommendations