Articles

Between regulatory field structuring and organizational roles: Intermediation in the field of Sustainable Urban Development

A. MEHRPOUYA

Regulation and Governance

Forthcoming

Departments: Accounting & Management Control, GREGHEC (CNRS)


Building the legitimacy of whistleblowers: A multi-case discourse analysis

H. STOLOWY, Y. GENDRON, J. MOLL, L. PAUGAM

Contemporary Accounting Research

Forthcoming

Departments: Accounting & Management Control, GREGHEC (CNRS)

Keywords: Whistleblowing; Fraud detection; Role definition; Discourse analysis; Legitimacy; Securities and Exchange Commission (SEC); Sarbanes-Oxley Act (SOX)


Evidence suggests society still does not view whistleblowers as wholly legitimate – despite legal protections now offered in some jurisdictions, such as the United States. Drawing on a discourse analysis, (i.e., an examination of statements), we investigate the well-publicized stories of seven whistleblowers from 69 sources, including books, first- and second-hand interviews, websites and videos. Our focus is to examine how whistleblower discourses can build legitimacy by more tightly defining the whistleblower role and demonstrating its alignment with social norms. Using whistleblower self-narratives, we identify four narrative patterns: (1) Trigger(s): the event(s) leading to whistleblowing; (2) Personality traits: whistleblower’s morality, resourcefulness, and determination; (3) Constraints: barriers requiring regulatory and organizational change; and (4) Consequences: the longer-term positive impact of the whistleblowing act. These patterns rely on symbolic, analogical, and metaphorical framing to allow others to better understand the role of whistleblowers and enlist their support. Exploring a dataset of 1,621 press articles, we find indications that these narrative patterns resonate in the media – which provide a form of support and may be instrumental in legitimizing the whistleblower role. Grounded on these results, we develop a legitimacy construction model of the whistleblower role, i.e., a representation of how role legitimacy is produced and sustained. From this model, we identify a number of important areas for future research

Do investors pay sufficient attention to banks’ unrealized gains and losses on available-for-sale securities?

Romain BOULLAND, Gerald LOBO, L. PAUGAM

European Accounting Review

Forthcoming

Departments: Accounting & Management Control, GREGHEC (CNRS)

Keywords: Other comprehensive income, Available-for-sale securities gains and losses, Investor reaction, Investor attention, Analyst reaction

https://www.tandfonline.com/doi/full/10.1080/09638180.2018.1562950


Unrealized gains and losses on available-for-sale securities (AFSGL) are included in Other Comprehensive Income (OCI) and directly affect shareholders’ equity but are not included in earnings. We investigate whether unrealized AFSGL help predict future earnings and whether analysts and investors incorporate the information conveyed by unrealized AFSGL in a timely manner. We conduct our investigation on a sample of banks because unrealized AFSGL are material in the banking industry. First, we show that unrealized AFSGL are material and help in predicting next period realized AFSGL and future earnings change. Second, we document that financial analysts are slow to react to unrealized AFSGL and update their forecasts after AFSGL are realized in earnings. Third, we find that investors are also slow to react to unrealized AFSGL and do so only after AFSGL is included (realized) in earnings and after financial analysts update their forecasts. We document an annual difference of 5% in future abnormal returns between banks in the top and bottom quintiles of past unrealized AFSGL. A zero-cost trading strategy that relies on public information about unrealized AFSGL generates a sizeable monthly alpha that ranges between 1.8% and 1.9%

Numbers in Regulatory Intermediation; Exploring the role of performance measurement between legitimacy and compliance

A. MEHRPOUYA, R. SAMIOLO

Regulation and Governance

Forthcoming

Departments: Accounting & Management Control, GREGHEC (CNRS)


The multiplicity of performance management systems: heterogeneity in multinational corporations and management sense-making

M. EZZAMEL, D. COOPER, K. ROBSON

Contemporary Accounting Research

Forthcoming

Departments: Accounting & Management Control

https://onlinelibrary.wiley.com/doi/full/10.1111/1911-3846.12416


This field study examines the workings of multiple performance measurement systems (PMSs) used within and between a division and Headquarters (HQ) of a large European corporation. We explore how multiple PMSs arose within the multinational corporation. We first provide a first-order analysis which explains how managers make sense of the multiplicity and show how an organization's PMSs may be subject to competing processes for control that result in varied systems, all seemingly functioning, but with different rationales and effects. We then provide a second-order analysis based on a sense-making perspective that highlights the importance of retrospective understandings of the organization's history and the importance of various legitimacy expectations to different parts of the multinational. Finally, we emphasize the role of social skill in sense-making that enables the persistence of multiple systems and the absence of overt tensions and conflict within organizations


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