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Financialisation: Constructing shareholder value … for some

Author

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  • Newberry, Susan
  • Robb, Alan

Abstract

Drawing from the theorising of Froud et al. [Froud J, Johal S, Papazian V, Williams K. The temptation of Houston: a case study of financialisation. Critical Perspectives on Accounting 2004;15(6–7):885–909] and Kripner [Krippner G. The financialisation of the American economy. Socio-Economic Review 2005;3:173–208] on financialisation, we explore the activities of New Zealand's largest listed company Telecom (NZ) Ltd. The success narrative produced by Telecom since its privatisation and listing in 1991 is centred on shareholder value. However, its financial reporting practices seem increasingly complicated and difficult to comprehend. Telecom's original off-shore investors reaped considerable returns on their investment and, until recently most investors in Telecom were domiciled outside New Zealand. Its production activities have remained concentrated in New Zealand where it holds a monopoly over an essential part of the country's communication infrastructure. This examination of Telecom's activities and financial reporting adds to the debate about financialisation by questioning the effects of the separation of production and accumulation on those where production is located. It also demonstrates the use of accounting and financial reporting practices to support a success narrative which results in resource transfers to those engaged in accumulation activities to the potential detriment of those involved in, or affected by, the company's production activities.

Suggested Citation

  • Newberry, Susan & Robb, Alan, 2008. "Financialisation: Constructing shareholder value … for some," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(5), pages 741-763.
    • Handle: RePEc:eee:crpeac:v:19:y:2008:i:5:p:741-763
    DOI: 10.1016/j.cpa.2006.08.007
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    Citations

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    Cited by:

    1. Andrew, Jane & Cortese, Corinne, 2013. "Free market environmentalism and the neoliberal project: The case of the Climate Disclosure Standards Board," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(6), pages 397-409.
    2. Modell, Sven & Yang, ChunLei, 2018. "Financialisation as a strategic action field: An historically informed field study of governance reforms in Chinese state-owned enterprises," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 54(C), pages 41-59.
    3. Zhang, Ying & Andrew, Jane, 2014. "Financialisation and the Conceptual Framework," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 17-26.
    4. Zhang, Ying & Andrew, Jane, 2022. "Financialisation and the Conceptual Framework: An update," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    5. Andersson, Tord & Gleadle, Pauline & Haslam, Colin & Tsitsianis, Nick, 2010. "Bio-pharma: A financialized business model," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(7), pages 631-641.
    6. Morales, Jérémy & Sponem, Samuel, 2017. "You too can have a critical perspective! 25 years of Critical Perspectives on Accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 43(C), pages 149-166.
    7. Bakre, Owolabi M. & McCartney, Sean & Fayemi, Simeon Olufemi, 2022. "Accounting as a technology of neoliberalism: The accountability role of IPSAS in Nigeria," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 87(C).
    8. Müller, Julian, 2014. "An accounting revolution? The financialisation of standard setting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(7), pages 539-557.
    9. Froud, Julie & Tischer, Daniel & Williams, Karel, 2017. "It is the business model… Reframing the problems of UK retail banking," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 42(C), pages 1-19.
    10. Haslam, Jim, 2010. "The problematics of financialization: Critical reflections," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(7), pages 642-645.
    11. Ikseon Suh & John T. Sweeney & Kristina Linke & Joseph M. Wall, 2020. "Boiling the Frog Slowly: The Immersion of C-Suite Financial Executives into Fraud," Journal of Business Ethics, Springer, vol. 162(3), pages 645-673, March.

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