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This paper aims to explore how management control systems (MCS) of an operating company (Delta Lanka) of a multinational corporation (MNC) is shaped through the interplay between external institutional influences via global prescriptions stemming from the parent company culture and localisation needs as suited to cultural context of the operating company through the agency of practice level actors.

Theoretically, the paper draws upon institutional theory, more specifically the notions of external institutions and agency of practice level actors, while methodologically, it adopts the single-site case study approach under the qualitative tradition.

The findings suggest that given the complex setting of being encountered with multiple cultural ramifications, MCS of Delta Lanka encompasses compulsory elements instigated by the parent company, and non-compulsory elements as attuned to the realities of the local culture of the operating company. The authors show how imposed practices in the institutional environment by the parent company (homogeneity) interact with agentic aspects of actors in the operating company giving rise to practice variation (heterogeneity) in the adoption of controls at the local level.

The paper offers insights on how practicing managers in operating companies of MNCs could formulate control systems by striking a balance between multiple cultural considerations (of the parent and operating company). This would be a lesson for managers of other firms (especially MNCs).

By bringing together multitude of cultural dimensions relating to the parent company and operating company into a single study in the area of management control, this paper adds to the burgeoning literature on the interplay between external institutions, agency of actors, culture and MCS. It also contributes to the on-going debate on MCS research taking a post-Hofstede orientation while extending the use of institutional theory in management accounting research in MNCs.

This paper aims to provide evidence of an unintended observable consequence of International Financial Reporting Standards (IFRS) adoption by examining opportunistic use of earnings management through revenue as well as expense items classification shifting in the year of transition.

To document classification shifting, the authors take advantage of the Korean mandatory IFRS adoption in 2011, when broad discretion was given to publicly traded companies’ managers to present operating profits.

It is found that companies strategically use both revenues and expenses to manage core earnings at the time of transition by shifting other income as a common tactic to improve their operating performance and special expenses just to meet or beat earnings targets.

Given the concerns of the Securities and Exchange Commission (SEC) about classification shifting behavior and the debate over whether the SEC should mandate the use of IFRS for US companies, the findings of this study are timely and contribute to authors’ understanding of the unintended consequences of mandatory IFRS adoption.

The purpose of this study is to examine the impact of the implementation of supply chain strategic collaboration (SCSC) on companies’ operating performance.

Based on 181 SCSC announcements of listed companies in China, this study analyzes changes in the operating performance of the sample companies in the 20 quarters after the announcement. The changes in different operating performance metrics for the sample firms are compared against their metrics before the announcement. This study uses a self-control model based on historical performance and uses a combination of adjustment percentage changes and adjustment level changes to measure performance changes.

SCSC helps to improve firm operating performance, although this effect is only evident after two years. Companies that collaborate on product development have better performance improvements than do companies that implement market collaboration. The operating performance of buyer companies is better than that of supplier companies. Finally, strategic collaboration in the service supply chain improves performance more than that in the manufacturing supply chain.

The finding that company performance varies in different situations can help managers better understand and manage SCSC.

This study newly uses secondary data to assess changes in companies’ operating performance brought about by the implementation of SCSC.

This study focuses primarily on the business operating departments (hereinafter, DMUs) of a case telecom company (hereinafter, the Company) in the northern and eastern areas of Taiwan. In 2007, the Company finished the first stage of its reorganization by consolidating 14 DMUs into 12. In 2011, the Company completed the second stage of its reorganization by consolidating the 12 remaining DMUs into 8. This study intends to explore the effects of each stage of the Company’s reorganization on the efficiency and ranking of the various DMUs. The results show that the DMUs became more efficient after each stage of the Company’s reorganization. Moreover, the efficiency and ranking of the new DMUs, A6, A7, and B7 increased post-consolidation. This suggests that both the first and second stages of the reorganization were necessary. The findings of this study could help the Company and other telecom companies to design strategies for the future consolidation of other units, and thereby maintain their competitiveness and continued growth.

This paper aims to discuss a recently‐decided Seventh Circuit case in which the Securities and Exchange Commission (SEC) alleged that National Presto Industries, Inc., a seller of household goods and munitions, was unlawfully operating as an investment company. The paper also aims to explain concisely the definition of investment company under the Investment Company Act of 1940 (the 1940 Act).

Using the Seventh Circuit's decision as an introduction, this paper summarizes the definition of investment company under the 1940 Act, highlights a statutory exclusion from the definition and a related SEC interpretation, reviews the judicial opinion and offers commentary on the court's decision.

The study finds that a typical investment company, such as a mutual fund, is nothing more than a pool of securities and cash. Most operating companies, such as manufacturers or service providers, look nothing like an investment company. Their assets consist of buildings, plants, inventory, computers and more. Yet, it is possible for an operating company to become an investment company. The definition under the 1940 Act provides a rather mechanical test for making this determination. The Seventh Circuit's decision concerned an operating company that the SEC believed satisfied the definition. In disagreeing with the SEC, the court seemed to focus on how a reasonable investor would perceive the company's business.

This paper provides a useful summary of how an operating company inadvertently could become an investment company. It should be valuable to officers and employees, particularly those who are engaged in cash management activities, of both public and private operating companies because it raises awareness of the ease with which an operating company can become an investment company and the availability of options to avoid such an outcome.

As cable and satellite industry undergoes transformation in the 21st century with the onslaught of innovation-driven changes, it is important to know which company is doing better and which company is falling behind. This study compares the relative performance of eight cable companies using three factors: operating expense for every dollar of operating revenue, earnings before interest, taxes, depreciation, and amortization, and return on assets. We also evaluate the performance of each firm against itself for the period 2010–2013 to see if they show improvement or deterioration in operating efficiency.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Companies that adopt lean operations and lean accounting ultimately should achieve better profitability and cash flows than similarly situated companies that do not adopt lean operations and lean accounting.

Archival data is analyzed through Wilcoxon signed-ranks, matched-pairs tests.

Lean companies had greater returns on net operating assets (RNOA), returns on total assets (ROA), operating cash flows, and cash-adequacy ratios than Non-Lean companies. These results were driven by the larger Lean companies. The profit margins and financing-assets ratios also were marginally better for the Lean companies than the Non-Lean companies.

Lean companies have achieved benefits proposed by the proponents of lean operations. The present study provides a starting point for further research on the financial performance of Lean companies using archival data.

There is limited research on the financial performance of Lean companies that is based on archival data. The present study fills a void in the academic literature. This study measures RNOA, which does not confound operating and financing activities. Additionally, this study utilized a methodology that provides reasonable assurance of the identification of both Lean companies and Non-Lean companies from publicly available data.

The purpose of this paper is to explain how the system science and cybernetics in Stafford Beer's viable system model (VSM) will help management structure and manage their company to achieve on‐going success in a fast‐changing world.

The author worked with Stafford Beer in the 1970s, applying his VSM in the corporation he then worked for and has used the VSM ideas in work with companies in 16 countries, always with success. The VSM instructs in how to structure and how to manage. For what to manage the author used Peter Drucker's key performance areas, and has more than 50 years of experience working in these areas.

The author has found, during his long career in industry and in consulting, that the VSM is the best available guide for structuring and managing a business enterprise for success in turbulent times.

In the 1950s, Ralph Cordiner “decentralized” General Electric into 120 businesses, pioneering a new, better way to structure and manage a corporation. After 50 years, we have the next revolutionary advance in management, the system science and cybernetics in Stafford's VSM. The VSM includes information and environments in structure, enabling companies to change as appropriate for achieving on‐going success in a world of huge and fast‐growing variety.

The paper shows how a simple form of the VSM includes all the system science company management needs to structure and manage their company for enduring success in fast‐changing times.