Competitive awareness: Accounting for corporate performance in the Europe 170

The objective ofthe research is to reinstate value added accounting in a capital market context to judge corporate performance and corporate strategy. The thesis uses a value added format to deconstruct return on capital employed (ROCE) and reviews how income percolates down a value added statement to the bottom line. As expenses are collected by their 'nature' this approach avoids the arbitrariness associated with categorising expenses by 'function'. In addition corporate performance is presented in a pyramid structure offmancial key ratios which enables the .addition ofa capit.al market dimension, an important consideration when fIrms and their managers are under pressUre to I deliver shareholder value. The framework is used to construct a dataset offIrms listed in the main European stock . . market indices (FTSElOO, CAC40 and DAX30), to make similarities and differences of / . fmancial ratios visible at the macro, meso and micro level. As such it is possible to judge' performance and managerial priorities as well as position individual fIrms, as done in the case study, into a quintile distribu~ion. The case study also reviews strategic narratives for the case fIrms and make a more detailed fmancial analysis th.an possible for the Europe 170, which makes visible the strength of aligning'narratives with numbers. The contribution to knowledge, besides the dataset itself, is related to the usefulness ofthe value added accounting format in relation to capital markets by: • Revealing a complementary set ofvalue drivers to that existing in fmance theory by using a nature of expense format. Suggesting an 'accounting theory of the firm' by integrating the industry and,the resource based view ofstrategy with shareholder value metrics. The integration ofaccounting numbers and strategic narratives enables feedback mechanisms for the reformulation ofstrategy. Keywords: Value added statement, nature of expense IFRS value drivers, theory of the firm, strategic management accounting

Accounting for the financialized UK and US national business model

The term ‘business model’ (BM) is generally used to describe the possibilities of transforming corporate activities and business functions (Osterwalder et al,2005 and Magretta,2002) In this paper we argue that our understanding of what constitutes a BM can be reworked to generate a useful organizing framework to investigate the nature of national economic development and transformation. Our argument is that national business models are subtended within a broad econo‐sphere where they evolve and adapt to information arising out of stakeholder interactions. These interactions congeal into reported financial numbers that are represented as GDP flow (income and surplus) and Balance Sheet accumulations (assets and liabilities outstanding). In this paper we employ financial data from national accounts to specifically describe how the US and UK national business models have financialized. We observe that balance sheet capitalization has inflated ahead of earnings and surplus. Our argument is that the capitalization of a national business model is not simply the mathematical product of discounting corporate cash earnings. The process of on‐going capitalization is also conditioned by variable institutional sector characteristics where financial innovation is possible and, within credit based economies, goodwill and holding gains arising out of asset inflation also provide collateral for further ongoing recapitalizations. In financialized national business models the system of accounting takes on added analytical significance because it ‘transmits rather than contains’ and ‘amplifies rather than dampens’ adverse financial disturbance as capitalizations are recalibrated up or down.Peer reviewe

Accounting for decarbonisation and reducing capital at risk in the S&P500

This document is the Accepted Manuscript version of the following article: Colin Haslam, Nick Tsitsianis, Glen Lehman, Tord Andersson, and John Malamatenios, ‘Accounting for decarbonisation and reducing capital at risk in the S&P500’, Accounting Forum, Vol. 42 91): 119-129, March 2018. Under embargo until 7 August 2019. The final, definitive version is available online at doi: https://doi.org/10.1016/j.accfor.2018.01.004.This article accounts for carbon emissions in the S&P 500 and explores the extent to which capital is at risk from decarbonising value chains. At a global level it is proving difficult to decouple carbon emissions from GDP growth. Top-down legal and regulatory arrangements envisaged by the Kyoto Protocol are practically redundant given inconsistent political commitment to mitigating global climate change and promoting sustainability. The United Nations Environment Programme (UNEP) and European Commission (EC) are promoting the role of financial markets and financial institutions as drivers of behavioural change mobilising capital allocations to decarbonise corporate activity.Peer reviewe

Accounting for carbon and reframing disclosure : A business model approach

This document is the Accepted Manuscript version of the following article: Colin Haslam, John Butlin, Tord Andersson, John Malamatenios, and Glen Lehman, 'Accounting for carbon and reframing disclosure: A business model approach', Accounting Forum, Vol. 38 (3): 200-211, September 2014, doi: https://doi.org/10.1016/j.accfor.2014.04.002, Copyright © 2014 Elsevier Ltd. All rights reserved. This manuscript version is made available under the terms of the Creative Commons CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/The paper contributes to the research in accounting and the debate about the nature of carbon footprint reporting for society. The paper utilises numbers and narratives to explore changes in carbon footprint using UK national carbon emissions data for the period 1990–2009 and six years (2006–2011) of carbon emissions data for the FTSE 100 group of companies and a case study that focuses on the UK mixed grocery sector. Our argument is that existing approaches to framing carbon disclosure generate malleable, inconsistent and irreconcilable numbers and narratives. In this paper we argue for an alternative framing of carbon disclosure informed by a reporting entities business model. Specifically, we suggest, that a reporting entity disclose its carbon–material stakeholder relations. This alternative, we argue, would increase the visibility of carbon generating stakeholder relations and avoid some of the difficulties and arbitrariness associated with framing carbon disclosure around a reporting entity boundary where judgements have to be made about responsibility and operational control.Peer reviewe

Stress testing International Financial Reporting Standards (IFRSs) : Accounting for stability and the public good in a financialized world

This is a pre-copyedited, author-produced PDF of an article accepted for publication in Accounting, Economics and Law - a Convivium following peer review. The version of record [Andersson, T. et al, 6:2 (93-118), first published online November 13, 2015, is available on line at doi: https://doi.org/10.1515/ael-2015-0006The recent Maystads report (2013) challenged the European Parliament to modify governance arrangements surrounding the design and endorsment of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). In addition the Maystadt report constructs an argument that accounting information has the capacity to also modify behaviour and that this might not be conducive for the European public good, financial stability and economic development. In this paper we argue that IFRS need to be stress tested for their impact on firm-level financial stability in a financialized World. The financialized firm can revalue a range of assets to their market value crystalizing future earning stream into current value but these valuations can become impaired. Asset value impairments will be charged to shareholder equity but this is being hollwed out because a higher proportion of earnings are being distributed to shareholders. Accounting disclosures are not only an information feed to users they inform the stewardship and control of a firm´s resources and in the financialized firm the potential for financial instability is heightend and this can translate into a moral hazard for society.Peer reviewedFinal Accepted Versio

Industrial heating using energy efficient induction technology

Abstract in UndeterminedThe demands for energy efficent heating solutions for the manufacturing industry can be met by a newinduction heating platform, presented in this article. A new concept and technology to design andmanufacture induction heating unit is presented, as well as a prototype induction heater, evaluated and testedin an industrial environment. Improvements compared to existing heating solutions can be clearly shown, e.g.higher heating efficiency, no requirement for advanced cooling, a higher geometrical flexibility and alsoenvironmental gains. The Greenheat platform is built on Litz wiring, SMC flux conductors, and a castingtechnology which is outlined in the article

Financialization directing strategy

Original article can be found at: http://www.sciencedirect.com/science/journal/01559982 Copyright Elsevier Ltd. DOI: 10.1016/j.accfor.2008.08.001This paper constructs an account of how financialization is directing strategy in the S&P 500. Financialization describes how changes in US accounting regulations require firms to account for the market value of capital market transactions where corporate strategy is not simply concerned with delivering value creation but also reacting to value absorption in an era of shareholder value. Financialization is directing strategy and arbitrage to modify stakeholder financial settlements where an increased share of income is extracted as surplus cash and more of this cash from operations is being distributed to shareholders. Share buy-backs account for a substantial increase in the share of corporate cash distributed to shareholders in the S&P 500 which, we argue, reflects a strategic process of value creation and value absorption.Peer reviewe

Kinetics of gene expression and bone remodelling in the clinical phase of collagen-induced arthritis

INTRODUCTION: Pathological bone changes differ considerably between inflammatory arthritic diseases and most studies have focused on bone erosion. Collagen-induced arthritis (CIA) is a model for rheumatoid arthritis, which, in addition to bone erosion, demonstrates bone formation at the time of clinical manifestations. The objective of this study was to use this model to characterise the histological and molecular changes in bone remodelling, and relate these to the clinical disease development. METHODS: A histological and gene expression profiling time-course study on bone remodelling in CIA was linked to onset of clinical symptoms. Global gene expression was studied with a gene chip array system. RESULTS: The main histopathological changes in bone structure and inflammation occurred during the first two weeks following the onset of clinical symptoms in the joint. Hereafter, the inflammation declined and remodelling of formed bone dominated. Global gene expression profiling showed simultaneous upregulation of genes related to bone changes and inflammation in week 0 to 2 after onset of clinical disease. Furthermore, we observed time-dependent expression of genes involved in early and late osteoblast differentiation and function, which mirrored the histopathological bone changes. The differentially expressed genes belong to the bone morphogenetic pathway (BMP) and, in addition, include the osteoblast markers integrin-binding sialoprotein (Ibsp), bone gamma-carboxyglutamate protein (Bglap1), and secreted phosphoprotein 1 (Spp1). Pregnancy-associated protein A (Pappa) and periostin (Postn), differentially expressed in the early disease phase, are proposed to participate in bone formation, and we suggest that they play a role in early bone formation in the CIA model. Comparison to human genome-wide association studies (GWAS) revealed differential expression of several genes associated with human arthritis. CONCLUSIONS: In the CIA model, bone formation in the joint starts shortly after onset of clinical symptoms, which results in bony fusion within one to two weeks. This makes it a candidate model for investigating the relationship between inflammation and bone formation in inflammatory arthritis. ELECTRONIC SUPPLEMENTARY MATERIAL: The online version of this article (doi:10.1186/s13075-015-0531-7) contains supplementary material, which is available to authorized users