Management control systems and generational differences: An exploratory case study of a professional services firm

This research investigates how generational culture is reflected in the design and use of Management Control Systems (MCS) within a Professional Services Firm. Literature suggests that each generation has its own characteristics or culture. This culture gives rise to preferences within each generation that potentially impact how they interface in organizations and impact the design, use and effectiveness of MCS. This issue is come to the fore in the current tight labour market and especially in accounting firms. The paper adopts an exploratory case study approach of a Big 4 Accounting Firm. The research demonstrates that generational culture has been an influential factor in the case firms MCS design. In doing so it provides insights as to how organisations can design their MCS in order to satisfy the preferences of different generations. Furthermore, the research shows that the firm aligned the MCS design to the preferences of Generation Y and explains why this was done. This improved retention rates in a tight labour market. However, it also raises concerns that this design may be at the detriment to the firm through changes in firm culture, creation of conflict between generations, and a problems with the performance of Generation Y

Eurozone Membership and Foreign Direct Investment

Our aim in this chapter is to estimate the effects of European Monetary Union (EMU) membership on foreign direct investment (FDI). Previous literature on the cross-border impact of a common currency have concentrated on international trade effects. Our analysis is based on the gravity model, which has been successfully applied to explain most forms of bilateral cross-border flows. We estimate a structural gravity model using data for 34 OECD countries between 1985 and 2013 for bilateral FDI. We use a variety of econometric techniques to ensure the robustness of our findings including stock as well as flow measures of FDI and addressing selection issues. Our estimates of the impact of EMU underlines the role of FDI as a channel for benefits from deep economic integration between countries. The effect of EMU membership on FDI is estimated to be significant and positive, at around 130%