Batiz-Lazo, Bernardo and Noguchi, Masayoshi (2011): The disciplinary power of accounting-based regulation: the case of building societies, circa 1960.
Download (481Kb) | Preview
This paper examines how accounting–based regulation was introduced through the House Purchase and Housing Act, 1959 (HPHA59) and Building Societies Act, 1960 (BSA60). It also tells how it was put into practice by the Registrar of Friendly Societies (RFS). The discussion is framed by the so called ‘disciplinary perspective’ of accounting as represented by Hoskin and Macve (1986; 1988; 1994a; 1994b; 1996; 2000). Fieldwork documents cases of intervention by the RFS under new powers granted by BSA60. These new powers were used to discipline targeted societies or those revealing inadequate use of their funds and thus, observed important deviations from specified accounting-based criteria which was generally recognized as financially sound within the industry. As a result we provide evidence of how accounting-based regulation affected the operation of the societies. This evidence amends other studies claiming that managers of British financial intermediaries disregarded accounting information in their operation and strategic plans (or that they incorporated such criteria until the 1990s).
|Item Type:||MPRA Paper|
|Original Title:||The disciplinary power of accounting-based regulation: the case of building societies, circa 1960|
|Keywords:||accounting-based regulation; House Purchase and Housing Act, 1959 (HPHA59); Building Societies Act, 1960 (BSA60); Chief Registrar of Friendly Societies (CRFS); the Building Societies Association (Association); disciplinary power; reserve ratio|
|Subjects:||N - Economic History > N8 - Micro-Business History
M - Business Administration and Business Economics; Marketing; Accounting > M4 - Accounting and Auditing > M41 - Accounting
N - Economic History > N2 - Financial Markets and Institutions
|Depositing User:||Bernardo Batiz-Lazo|
|Date Deposited:||27. Jan 2011 15:27|
|Last Modified:||12. Feb 2013 02:08|
Armstrong, P. (1994/2006) The influence of Michel Foucault on Accounting Research, Critical Perspective on Accounting, 5(1): 25-55 (reprinted in Fleischman, (ed.) Accounting History Vol. 3, London: Sage Publications: 24-56.
Barnes, P. and Dodds, C. (1983) The structure and performance of the UK building society industry 1970-78, Journal of Business Finance and Accounting, 10(1): 37-56.
Barnes, P. (1985) UK building societies – a study of the gains from merger, Journal of Business Finance and Accounting, 12(1): 75-91.
Bátiz-Lazo, B. (2006) “Changes in the Depreciation of Buildings in an English Building Society, circa 1959: Financial and Governance implications”, working paper, Bristol Business School, http://ideas.repec.org/p/pra/mprapa/4617.html (accessed May 10, 2010).
Bátiz-Lazo, and Boyns, T. (2003) "Automation and management accounting in British manufacturing and retail financial services, 1945-68" (paper presented at the Information Systems and Technology in Organisations and Society, Universitat Pompeu Fabra, Barcelona).
Bátiz-Lazo, B. and Billings, M. (2011) “Accounting policy and Management Discretion in an English Building Society, circa 1959”, Abacus.
Bátiz-Lazo, B. and P. Wardley (2007). "Banking on change: information systems and technologies in UK High Street banking, 1919-1969" Financial History Review, 14(2): 177-205.
Billings, M. and Capie, F. (2004) The development of management accounting in UK clearing banks, 1920-70, Accounting, Business and Financial History, 14(3): 317-38.
Boléat, M. (1981) Building Societies - A Descriptive Study, London, Building Societies Association.
Boléat, M. (1986) The Building Society Industry, London: Allen & Unwin.
Booth, A. E. (2001) “British retail banks, 1955-70: A case of 'Americanisation'?” in Americanisation in Twentieth Century Europe: Business, Culture, Politics. M. Kipping and N. Tirasoo (eds.). Lille, Université Charles de Gaulle: 309-23.
Chen, Kevin C.W. and Wang, J. (2007) “Accounting-based regulation in emerging markets: The case of China's seasoned-equity offerings”, The International Journal of Accounting, 42(3): 221-236.
Chen, Kevin C.W. and Yuan, H. (2004) “Earnings management and capital resource allocation: Evidence from China’s accounting-based regulation of rights issues”, The Accounting Review, 79(3): 645-665.
Drake, L. (1989) The Building Society Industry in Transition, London: Macmillan.
Drury, C. (1994) Survey of Management Accounting in UK Building Societies, London: Institute of Chartered Accountants of England and Wales.
Drury, C. (1998) ”Management accounting and information systems in UK building societies”, The Service Industries Journal, 18: 125-43.
Helliar, C., Cobb, I. and Innes, J. (2002) ”A longitudinal case study of profitability reporting in a bank”, British Accounting Review, 34: 27-53.
Hoskin, K. and Macve, R. (1994b) “Writing, examining, disciplining: the genesis of accounting’s modern power”, in Hopwood, A. G. and Miller, P. (eds.) Accounting as Social and Institutional Practice, Cambridge: Cambridge University Press, pp. 67-97.
Hoskin, K. and Macve, R. (1986) “Accounting and the examination: a genealogy of disciplinary power”, Accounting, Organizations and Society, 11(2): 105-36.
Hoskin, K. and Macve, R. (1988) “The genesis of accountability: the West Point connections”, Accounting, Organizations and Society, 13(1): 37-73.
Hoskin, K. and Macve, R. (1994a) “Reappraising the genesis of managerialism: a re-examination of the role of accounting at the Spring Armory, 1815-45”, Accounting, Auditing and Accountability Journal, 7(2): 4-29.
Hoskin, K. and Macve, R. (1996) “The Lawrence Manufacturing Co.: a note on early cost accounting in U.S. textile mills”, Accounting, Business and Financial History, 6(3): 337-61.
Hoskin, K. and Macve, R. (2000) “Knowing more as knowing less? Alternative histories of cost and management accounting in the US and the UK”, Accounting Historians Journal, 27(1): 91-149.
Humphries, J. (1987) “Inter-War house building, cheap money and building societies: The housing boom revisited”, Business History, 29(3), 325-45.
Innes, J. and Mitchell, F. (1997) ”The application of activity-based costing in the United Kingdom's largest financial institutions”, The Service Industry Journal, 17: 190-203.
Jeremy, D. J. (1998) A Business History of Britain 1900-1990s, Oxford: Oxford University Press.
Lapsley, I. and Llewellyn, S. (1991) “Accounting and regulation in local government: The case of direct labour organizations”, Public Money & Management, 11(4): 43-51.
Miller, P. and O’Leary, T. (1987) Accounting and construction of the governable person, Accounting, Organizations and Society, 12(3): 235-65.
Mitanti, Jr., Paul (1990) “Measurement and organizational effectiveness: the ICC and accounting-based regulation, 1887-1940”, Business and Economic History, 2nd series, 19: 183-192.
Nightingale, P. and Poll, R. (2000) 'Innovation and investment banking: The dynamics of control systems within the Chandlerian firm,' Industrial and Corporate Change, 9: 113-41.
Noguchi, M. and Bátiz-Lazo, B. (2010) “The auditors’ reporting duty on internal control: The case of building societies, 1956-1960”, Accounting, Business & Financial History, 20(1): 41-66.
Perks, R. W. (1977) “Building Society accounts and the control of operating performance”, unpublished dissertation, Accounting and Finance, Glasgow: University of Strathclyde.
Soin, K. Seal, W. and Cullen, J. (2002) 'ABC and organizational change: An institutional perspective,' Management Accounting Research, 13: 249-71.
Soin, K. (2004) Management Accounting, Risk and Regulation: A Pilot Study of Compliance Practices in UK Financial Services, London: Chartered Institute of Management Accountants (CIMA).