Changes in management accounting rules and routines in merger and acquisition operations <sup>,</sup>

Ritta, Cleyton de Oliveira; Lavarda, Carlos Eduardo Facin

doi:10.1590/1808-057x20211479.en

Acessibilidade / Reportar erro

Brasil

Revista Contabilidade & Finanças

Español English

Brasil

Español English

sumário « anterior atual seguinte »

Sumário

Original Article • Rev. contab. finanç. 33 (90) • 2022 • https://doi.org/10.1590/1808-057x20211479.en copy

Changes in management accounting rules and routines in merger and acquisition operations^* * Paper presented at the 43rd ANPAD Conference, São Paulo, SP, Brazil, October of 2019. ^, ^ The authors are grateful for the support received from the National Council for Scientific and Technological Development (CNPq).

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

This study aims to understand the process of changes in management accounting rules and routines in merger and acquisition operations. The case provides empirical evidence on the post-acquisition context and the process of changes in management accounting in acquired companies, considering that the acquiring company tends to interfere through the coercive introduction of new management control systems. The research adds empirical evidence on the role of organizational principles established by the acquirer in the process of changes in the rules and routines in an acquired company. A change in management accounting is a complex process that involves the interaction of elements inside and outside organizations to promote organizational efficiency. The research evidence corroborates the literature by finding that changes in management accounting are motivated by the search for economic efficiency in acquired companies. However, the success of the change in rules and routines depends on various institutional elements that involve organizations, such as the coercive nature of the change driven by the new owners. The research is descriptive in nature and uses a qualitative approach, adopting a case study in a ceramic tiles company that underwent an acquisition operation. The acquisition operation brought a new philosophy of individual performance optimization that drove the institutionalization of the performance evaluation system in the acquired company. The new system was configured as a formal management accounting artifact focused on the individual. The results provide contributions for organizations, managers, and consultants that wish to implement management accounting artifacts in acquired companies by highlighting relevant elements from the institutional field and field of action for the management accounting change process.

Keywords:
management accounting; merger and acquisition; performance evaluation system; institutionalization

Category	Subcategories	Analysis elements	Authors
Characteristics of the management accounting rules and routines	Need for artifacts	Idealized managerial objectives. Technical motives for choice.	Busco and Scapens (2011Busco, C., & Scapens, R. W. (2011). Management accounting systems and organisational culture: Interpreting their linkages and processes of change. Qualitative Research in Accounting & Management, 8(4), 320-357. https://doi.org/10.1108/11766091111189873 https://doi.org/10.1108/1176609111118987... ), Busco et al. (2006), Lukka (2007Lukka, K. (2007). Management accounting change and stability: Loosely coupled rules and routines in action. Management Accounting Research, 18(1), 76-101. https://doi.org/10.1016/j.mar.2006.06.006 https://doi.org/10.1016/j.mar.2006.06.00... ), Sharma et al. (2010Sharma, U., Lawrence, S., & Lowe, A. (2010). Institutional contradiction and management control innovation: A field study of total quality management practices in a privatized telecommunication company. Management Accounting Research, 21(4), 251-264. https://doi.org/10.1016/j.mar.2010.03.005 https://doi.org/10.1016/j.mar.2010.03.00... ), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
	Implementation of artifacts	Process of implementing artifacts.	Burns and Scapens (2000Burns, J., & Scapens, R. W. (2000). Conceptualizing management accounting change: An institutional framework. Management Accounting Research, 11(1), 3-25. https://doi.org/10.1006/mare.1999.0119 https://doi.org/10.1006/mare.1999.0119... )
	Configuration of artifacts	Procedural manuals. Conceptual models. Systems/software.	Lukka (2007Lukka, K. (2007). Management accounting change and stability: Loosely coupled rules and routines in action. Management Accounting Research, 18(1), 76-101. https://doi.org/10.1016/j.mar.2006.06.006 https://doi.org/10.1016/j.mar.2006.06.00... ), Sharma et al. (2014Sharma, U., Lawrence, S., & Lowe, A. (2014). Accountants as institutional entrepreneurs: Changing routines in a telecommunications company. Qualitative Research in Accounting & Management, 11(3), 190-214. https://doi.org/10.1108/QRAM-10-2012-0047 https://doi.org/10.1108/QRAM-10-2012-004... ), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
Purpose of the management accounting rules and routines.	Functionality of artifacts	Roles in the organizational context/structure. Managerial benefits obtained.	Busco and Scapens (2011Busco, C., & Scapens, R. W. (2011). Management accounting systems and organisational culture: Interpreting their linkages and processes of change. Qualitative Research in Accounting & Management, 8(4), 320-357. https://doi.org/10.1108/11766091111189873 https://doi.org/10.1108/1176609111118987... ), Busco et al. (2006), Lukka (2007Lukka, K. (2007). Management accounting change and stability: Loosely coupled rules and routines in action. Management Accounting Research, 18(1), 76-101. https://doi.org/10.1016/j.mar.2006.06.006 https://doi.org/10.1016/j.mar.2006.06.00... ), Sharma et al. (2010Sharma, U., Lawrence, S., & Lowe, A. (2010). Institutional contradiction and management control innovation: A field study of total quality management practices in a privatized telecommunication company. Management Accounting Research, 21(4), 251-264. https://doi.org/10.1016/j.mar.2010.03.005 https://doi.org/10.1016/j.mar.2010.03.00... , 2014), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
	Utility of artifacts	Individual activities and habits. Collective activities and habits.	Busco and Scapens (2011Busco, C., & Scapens, R. W. (2011). Management accounting systems and organisational culture: Interpreting their linkages and processes of change. Qualitative Research in Accounting & Management, 8(4), 320-357. https://doi.org/10.1108/11766091111189873 https://doi.org/10.1108/1176609111118987... ), Busco et al. (2006), Lukka (2007Lukka, K. (2007). Management accounting change and stability: Loosely coupled rules and routines in action. Management Accounting Research, 18(1), 76-101. https://doi.org/10.1016/j.mar.2006.06.006 https://doi.org/10.1016/j.mar.2006.06.00... ), Sharma et al. (2010Sharma, U., Lawrence, S., & Lowe, A. (2010). Institutional contradiction and management control innovation: A field study of total quality management practices in a privatized telecommunication company. Management Accounting Research, 21(4), 251-264. https://doi.org/10.1016/j.mar.2010.03.005 https://doi.org/10.1016/j.mar.2010.03.00... , 2014), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
	Social meaning of artifacts	Reliability. Comprehensibility. Relevance.	Busco and Scapens (2011Busco, C., & Scapens, R. W. (2011). Management accounting systems and organisational culture: Interpreting their linkages and processes of change. Qualitative Research in Accounting & Management, 8(4), 320-357. https://doi.org/10.1108/11766091111189873 https://doi.org/10.1108/1176609111118987... ), Busco et al. (2006), Lukka (2007Lukka, K. (2007). Management accounting change and stability: Loosely coupled rules and routines in action. Management Accounting Research, 18(1), 76-101. https://doi.org/10.1016/j.mar.2006.06.006 https://doi.org/10.1016/j.mar.2006.06.00... ), Sharma et al. (2010Sharma, U., Lawrence, S., & Lowe, A. (2010). Institutional contradiction and management control innovation: A field study of total quality management practices in a privatized telecommunication company. Management Accounting Research, 21(4), 251-264. https://doi.org/10.1016/j.mar.2010.03.005 https://doi.org/10.1016/j.mar.2010.03.00... , 2014), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
Institutional change of management accounting rules and routines	Formal vs informal change	Formal change. Informal change.	Burns and Scapens (2000Burns, J., & Scapens, R. W. (2000). Conceptualizing management accounting change: An institutional framework. Management Accounting Research, 11(1), 3-25. https://doi.org/10.1006/mare.1999.0119 https://doi.org/10.1006/mare.1999.0119... ), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
	Revolutionary vs evolutionary change	Revolutionary change. Evolutionary change.	Burns and Scapens (2000Burns, J., & Scapens, R. W. (2000). Conceptualizing management accounting change: An institutional framework. Management Accounting Research, 11(1), 3-25. https://doi.org/10.1006/mare.1999.0119 https://doi.org/10.1006/mare.1999.0119... , 2011), Busco et al. (2006Busco, C., Riccaboni, A., & Scapens, R. W. (2006). Trust for accounting and accounting for trust. Management Accounting Research, 17(1), 11-41. https://doi.org/10.1016/j.mar.2005.08.001 https://doi.org/10.1016/j.mar.2005.08.00... ), Sharma et al. (2014Sharma, U., Lawrence, S., & Lowe, A. (2014). Accountants as institutional entrepreneurs: Changing routines in a telecommunications company. Qualitative Research in Accounting & Management, 11(3), 190-214. https://doi.org/10.1108/QRAM-10-2012-0047 https://doi.org/10.1108/QRAM-10-2012-004... ), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )
	Regressive vs progressive change	Regressive change. Progressive change.	Burns and Scapens (2000Burns, J., & Scapens, R. W. (2000). Conceptualizing management accounting change: An institutional framework. Management Accounting Research, 11(1), 3-25. https://doi.org/10.1006/mare.1999.0119 https://doi.org/10.1006/mare.1999.0119... ), Busco et al. (2006Busco, C., Riccaboni, A., & Scapens, R. W. (2006). Trust for accounting and accounting for trust. Management Accounting Research, 17(1), 11-41. https://doi.org/10.1016/j.mar.2005.08.001 https://doi.org/10.1016/j.mar.2005.08.00... ), Lukka (2007Lukka, K. (2007). Management accounting change and stability: Loosely coupled rules and routines in action. Management Accounting Research, 18(1), 76-101. https://doi.org/10.1016/j.mar.2006.06.006 https://doi.org/10.1016/j.mar.2006.06.00... ), Yazdifar et al. (2008Yazdifar, H., Zaman, M., Tsamenyi, M., & Askarany, D. (2008). Management accounting change in a subsidiary organization. Critical Perspectives on Accounting, 19(3), 404-430. https://doi.org/10.1016/j.cpa.2006.08.004 https://doi.org/10.1016/j.cpa.2006.08.00... )

Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade, Departamento de Contabilidade e Atuária Av. Prof. Luciano Gualberto, 908 - prédio 3 - sala 118, 05508 - 010 São Paulo - SP - Brasil, Tel.: (55 11) 2648-6320, Tel.: (55 11) 2648-6321, Fax: (55 11) 3813-0120 - São Paulo - SP - Brazil
E-mail: recont@usp.br

Acompanhe os números deste periódico no seu leitor de RSS

[1] Email
: cleytonritta@gmail.com