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- Cunningham, Gary, 1941-, et al.
(författare)
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Budget Effectiveness in Multinational Corporations: A Systems Fit Approach
- 2008
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Ingår i: Journal for Global Business Advancement. - Geneva : Inderscience. - 1746-9678. ; 1:2/3, s. 204-224
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Tidskriftsartikel (refereegranskat)abstract
- Budget effectiveness in multinational companies receives research interest because of globalisation. Research to date has used contingency-theory methods which have limitations. A systems-fit approach, which views organisations and systems holistically, is a complementary alternative. Compared with reductionistic contingency framework methods using regression analysis, it emphasises holistic methods related to effectiveness and deals with the inherent complexity of multinationals. This study examines the effectiveness of budget control systems in a Finnish multinational company using the systems approach. The tests examined the correlation of the fit of different profiles with effectiveness of the budget control system for both domestic and foreign subunits under conditions of high and low environmental uncertainty. No significant difference between domestic and foreign subunits is detected. Reliance on budget control is not inherently dysfunctional. The study demonstrates the viability of the systems-fit research approach.
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| 7. |
- Cunningham, Gary M, et al.
(författare)
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Budget effectiveness in multinational companies : a systems-fit approach
- 2008
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Ingår i: Journal for Global Business Advancement. - Geneve : Inderscience Publishers. - 1746-966X. ; 1:2/3, s. 204-224
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Tidskriftsartikel (refereegranskat)abstract
- Budget effectiveness in multinational companies receives research interest because of globalisation. Research to date has used contingency-theory methods which have limitations. A systems-fit approach, which views organisations and systems holistically, is a complementary alternative. Compared with reductionistic contingency framework methods using regression analysis, it emphasises holistic methods related to effectiveness and deals with the inherent complexity of multinationals. This study examines the effectiveness of budget control systems in a Finnish multinational company using the systems approach. The tests examined the correlation of the fit of different profiles with effectiveness of the budget control system for both domestic and foreign subunits under conditions of high and low environmental uncertainty. No significant difference between domestic and foreign subunits is detected. Reliance on budget control is not inherently dysfunctional. The study demonstrates the viability of the systems-fit research approach.
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| 8. |
- Fagerström, Arne, 1953-, et al.
(författare)
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Compliance With Consolidation (Group) Accounting Standards-The Vertical Adjustment Issue : A Survey of Swedish Multinationals
- 2007
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Ingår i: Journal for Global Business Advancement. - Geneva : Inderscience. - 1746-966X. ; 1:1, s. 37-48
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Tidskriftsartikel (refereegranskat)abstract
- Previous research into consolidated financial reporting of multinational companies has focused on horizontal adjustments, adjustments at the headquarters level to comply with accounting standards of the country where a stock exchange listing is made, e.g. US GAAP, or IFRS. An equally, if not more, important issue is vertical adjustments made by foreign subsidiaries when information is transmitted to the headquarters for consolidation. This study surveys all Swedish multinational companies listed on the Stockholm Stock Exchange, firstly in the early 1990s and again some 10 years later to determine whether vertical adjustments were made as an indicator of compliance with Swedish accounting standards. The results indicate that while most Swedish multinational companies made vertical adjustments, the large number that did not indicates a potentially high degree of non-compliance with accounting standards. In all cases, though, the companies claimed they had complied and their auditors concurred.
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| 9. |
- Fagerström, Arne, et al.
(författare)
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Compliance with consolidation (group) accounting standards – the vertical adjustment issue : Field studies of multi-nationals
- 2007
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Ingår i: International Journal of Accounting, Auditing and Performance Evaluation. - 1740-8008. ; 4:6, s. 650-665
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Tidskriftsartikel (refereegranskat)abstract
- Compliance with accounting standards is a major issue in Europe and elsewhere. Research on the horizontal dimension shows non-compliance even though financial reports state compliance and auditors concur. The vertical dimension is more relevant to discover the extent and reasons for non-compliance. Previous research shows that financial executives of multi-nationals indicated non-compliance when asked directly, even though financial reports and auditors state compliance. This follow-on study uses field-studies of subsidiaries of multi-nationals in three countries to explore the extent and reasons for non-compliance for vertical adjustments when consolidating. The method of agreement and method of differences were used to analyse data. Results show substantial non-compliance and some reasons for non-compliance, notably income smoothing. The vertical dimension is appropriate for continued research and this study provides a model for similar research.
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| 10. |
- Fagerström, Arne, et al.
(författare)
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Financial reporting of Brazilian subsidiaries to Swedish multinational parent companies : a field study
- 2009
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Ingår i: Journal for International Business and Entrepreneurship Development. - : Inderscience Enterprises Limited. - 1549-9324 .- 1747-6763. ; 4:3, s. 179-190
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Tidskriftsartikel (refereegranskat)abstract
- With significant foreign direct investment in emerging economies and the European Union requirement that publicly held multinationals present consolidated financial reports, vertical adjustments to information provided by subsidiaries to conform to parent company accounting standards have become important. Yet, this issue has not been investigated significantly. In this study, we explore Brazilian subsidiaries' adjustments for Swedish multinationals to comply with Swedish accounting standards for consolidated financial reports as typical of the issue of vertical adjustments in general. Results show that subsidiaries that are material in consolidated groups seemingly make appropriate adjustments. Other subsidiaries that are not material are inconsistent. Also, some subsidiaries often distort financial results by inappropriately making adjustments before translating to the functional currency. Most subsidiaries use adjustments to smooth income. Lack of guidance and tacit approval from the parent company are possible factors subsidiaries' to make appropriate vertical adjustments. Laxity in the external audit process is apparent.
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