Articles scientifiques

'We are being Pilloried for Something, We Did Not Even Know We Had Done Wrong!' Quality Control and Orders of Worth in the British Audit Profession


Journal of Management Studies

juillet 2013, vol. 50, n°5, pp.845-869

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Audit profession, Boltanski, Institutional work, Quality control, Thévenot, United Kingdom

This paper contributes to the analysis of institutional work by looking at situations of perceived injustice that institutional change can create. To this end, the paper mobilizes the work of Boltanski and Thévenot on orders of worth to analyse the consequences for a professional body of a shift in institutional logics towards more accountability. The feeling of injustice experienced – and voiced – by some members of the largest British institute of auditors, the ICAEW, after it set up and operated a quality monitoring unit, serves to illustrate how change can turn awry when equity in a community of peers is threatened, and how institutional work can remedy such a situation by restoring a sense of worth in the community

Accounting and networks of corruption

D. Neu, J. Everett, A. Rahaman, D. E. MARTINEZ

Accounting Organizations and Society

août 2013, vol. 38, n°6-7, pp.505-524

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Corruption, Social networks, Social services, Sociology, Social interaction, Program administration (Education)

This study examines the nature and role of accounting practices in a network of corruption in an influence-market setting. The study focuses on the Canadian government's Sponsorship Program (1994'2003), a national unification scheme that saw approximately $50 million diverted into the bank accounts of political parties, program administrators, and their families, friends and business colleagues. Relying on the institutional sociology of Bourdieu, the study demonstrates the precise role of accounting practices in the organization of a corrupt network imbued with a specific telos and certain accounting tasks. The study illustrates how accounting is accomplished and by whom, and it shows how the 'skillful use' of accounting practices and social interactions around these practices together enable corruption. In so doing, the study builds on a growing body of work examining criminogenic networks and the contextual, collaborative and systemic uses of accounting in such networks

Analyst coverage, earnings management and financial development: An international study

F. Degeorge, Y. Ding, T. Jeanjean, H. STOLOWY

Journal of Accounting and Public Policy

janvier-février 2013, vol. 32, n°1, pp.1-25

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Using data from 21 countries, this paper analyzes the relation among analyst coverage, earnings management and financial development in an international context. We document that the effectiveness of financial analysts as monitors increases with a country’s financial development (FD). We find that in high-FD countries, increased within-firm analyst coverage results in less earnings management. Such is not the case in low-FD countries. Our results are economically significant and robust to reverse causality checks. Our findings illustrate one mechanism through which financial development mitigates the cost of monitoring firms and curbs earnings management.

Dirty work and the construction of identity. An ethnographic study of management accounting practices


Accounting Organizations and Society

avril 2013, vol. 38, n°3, pp.228-244

Départements : Comptabilité et Contrôle de Gestion

Financial Statement Comparability and Credit Risk


Review of Accounting Studies

2013, vol. 18, n°3, pp.783-823

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Comparability Corporate credit risk Credit rating agency Bond market liquidity

Prior research shows that firms’ financial statement comparability improves the accuracy of market participants’ valuation judgments and thus may reduce firms’ costs of capital. Distinct from prior research focusing on the equity market, we develop measures of comparability relevant to debt market participants based on the within-industry variability of Moody’s adjustments to reported accounting numbers for the purposes of credit rating. We examine two sets of adjustments: (1) to the interest coverage ratio and (2) to non-recurring income items. We validate these comparability measures by providing evidence that greater comparability is associated with lower frequency and magnitude of split ratings by credit rating agencies. We predict and find that greater comparability is associated with (1) lower estimated bid-ask spreads for traded bonds, (2) lower credit spreads for both bonds and five-year credit default swaps, and (3) a steeper one- to five-year credit default swap term structure. Our results are consistent with financial statement comparability reducing debt market participants’ uncertainty about and pricing of firms’ credit risk