IDEAS home Printed from https://ideas.repec.org/a/wly/accper/v16y2017i2p83-104.html
   My bibliography  Save this article

Merging the Profession: A Social Network Analysis of the Consolidation of the Accounting Profession in Canada

Author

Listed:
  • Alan J. Richardson

Abstract

The merger of Chartered Accountants (CAs), Certified General Accountants (CGAs) and Certified Management Accountants (CMAs) in Canada to create the Chartered Professional Accountant (CPA) designation is analyzed, using social network theory. The analysis examines the conversion of market power into political power through the legislative apportionment of council seats among the three legacy bodies. It then documents how political power affects the hiring of former senior association staff from each of the three predecessor bodies to run the merged association. Social network theory suggests that these appointments could be used to fill “structural holes” to ensure effective integration of the profession postmerger or could be used by those gaining political power within the network to reinforce their control over the merged association. The analysis shows that (i) the legislation consolidating the profession converted the market dominance of the former CAs into political dominance, (ii) former CA institute executives were disproportionately appointed to run CPA associations, and (iii) in some provinces, no connection to the knowledge base of other legacy bodies through staff appointments at an executive level was maintained. The results raise concern about the loss of social capital through the hiring process and the effects of the continued use of political power to structure the merged association on the profession's stability and resilience given the diversity of its members. Unification de la profession : application de l'analyse des réseaux sociaux au regroupement des organisations comptables au Canada Résumé L'auteur analyse le regroupement des organisations de comptables agréés (CA), de comptables généraux accrédités (CGA) et de comptables en management accrédités (CMA) au Canada pour créer le titre de comptable professionnel agréé (CPA), en appliquant la théorie des réseaux sociaux. Il se penche sur la conversion du pouvoir de marché en pouvoir politique grâce à la répartition législative des sièges d'administrateurs au conseil entre les trois organisations comptables d'origine. Il documente ensuite les modalités selon lesquelles le pouvoir politique influe sur l'embauche du personnel d’échelon supérieur de chacune des trois associations d'origine à la direction de l'association issue de la fusion. Selon la théorie des réseaux sociaux, ces nominations pourraient servir à combler les « vides structurels » afin d'assurer l'intégration efficace de la profession après la fusion ou être utilisées par ceux et celles qui acquièrent un pouvoir politique au sein du réseau afin de raffermir le contrôle qu'ils exercent sur l'association issue de la fusion. L'analyse révèle que i) la législation regroupant la profession a converti la domination des anciens CA sur le marché en domination politique, ii) les anciens dirigeants des ordres de CA ont été embauchés en nombre disproportionné aux postes de direction des associations de CPA, et iii) dans certaines provinces, aucun lien n'a été maintenu avec le bassin de connaissances des autres organisations comptables d'origine au moyen de la nomination de membres du personnel de ces organisations à des postes cadres. Les résultats de l’étude soulèvent des inquiétudes quant à la perte de capital social dans le processus d'embauche et aux répercussions du recours persistant au pouvoir politique pour structurer l'association issue de la fusion sur la stabilité et la résilience de la profession, compte tenu de la diversité de ses membres.

Suggested Citation

  • Alan J. Richardson, 2017. "Merging the Profession: A Social Network Analysis of the Consolidation of the Accounting Profession in Canada," Accounting Perspectives, John Wiley & Sons, vol. 16(2), pages 83-104, June.
    • Handle: RePEc:wly:accper:v:16:y:2017:i:2:p:83-104
    DOI: 10.1111/1911-3838.12139
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1911-3838.12139
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1911-3838.12139?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jane Fry & Tim Fry & Keith McLaren, 2000. "Compositional data analysis and zeros in micro data," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 953-959.
    2. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
    3. Pradeep Dubey & Lloyd S. Shapley, 1979. "Mathematical Properties of the Banzhaf Power Index," Mathematics of Operations Research, INFORMS, vol. 4(2), pages 99-131, May.
    4. Richardson, Alan J., 2009. "Regulatory networks for accounting and auditing standards: A social network analysis of Canadian and international standard-setting," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 571-588, July.
    5. Ken H. Guo, 2012. "Understanding Why and How Some Chartered Accountants Object to the Proposed Merger of the Three Accounting Professions in Canada," Accounting Perspectives, John Wiley & Sons, vol. 11(2), pages 111-130, June.
    6. Alan J. Richardson & Eksa Kilfoyle, 2012. "Merging the Profession: A Historical Perspective on Accounting Association Mergers in Canada," Accounting Perspectives, John Wiley & Sons, vol. 11(2), pages 77-109, June.
    7. Richardson, Alan J., 1989. "Corporatism and intraprofessional hegemony: A study of regulation and internal social order," Accounting, Organizations and Society, Elsevier, vol. 14(5-6), pages 415-431, October.
    8. Chua, W. F. & Poullaos, C., 1998. "The dynamics of "closure" amidst the construction of market, profession, empire and nationhood: An historical analysis of an Australian accounting association, 1886-1903," Accounting, Organizations and Society, Elsevier, vol. 23(2), pages 155-187, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Duff, Angus & Hancock, Phil & Marriott, Neil, 2020. "The role and impact of professional accountancy associations on accounting education research: An international study," The British Accounting Review, Elsevier, vol. 52(5).
    2. Dean Neu & Gregory D. Saxton & Abu S. Rahaman, 2022. "Social Accountability, Ethics, and the Occupy Wall Street Protests," Journal of Business Ethics, Springer, vol. 180(1), pages 17-31, September.
    3. Guo, Ken H., 2018. "The odyssey of becoming: Professional identity and insecurity in the Canadian accounting field," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 56(C), pages 20-45.
    4. Dean Neu & Gregory D. Saxton, 2023. "Building Ethical Narratives: The Audiences for AICPA Editorials," Journal of Business Ethics, Springer, vol. 182(4), pages 1055-1072, February.
    5. Gregory D. Saxton & Dean Neu, 2022. "Twitter-Based Social Accountability Processes: The Roles for Financial Inscriptions-Based and Values-Based Messaging," Journal of Business Ethics, Springer, vol. 181(4), pages 1041-1064, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sidhu, Jasvinder & Carnegie, Garry D. & West, Brian, 2021. "Australia's divided accounting profession: The 1969 merger attempt and its legacy," The British Accounting Review, Elsevier, vol. 53(3).
    2. Guo, Ken H., 2018. "The odyssey of becoming: Professional identity and insecurity in the Canadian accounting field," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 56(C), pages 20-45.
    3. Oehr, Tim-Frederik & Zimmermann, Jochen, 2012. "Accounting and the welfare state: The missing link," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(2), pages 134-152.
    4. Antonelli, Valerio & D'Alessio, Raffaele & Lauri, Lucia & Marcello, Raffaele, 2024. "Professional bodies and professional closure strategies: The field of auditing for small and medium-sized enterprises in Italy☆," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 99(C).
    5. Yee, Helen, 2009. "The re-emergence of the public accounting profession in China: A hegemonic analysis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(1), pages 71-92.
    6. François Brouard & Merridee Bujaki & Sylvain Durocher, 2017. "Attracting Prospective Professional Accountants Before and After the CPA Merger in Canada," Accounting Perspectives, John Wiley & Sons, vol. 16(2), pages 105-127, June.
    7. Dean Neu & Gregory D. Saxton, 2023. "Building Ethical Narratives: The Audiences for AICPA Editorials," Journal of Business Ethics, Springer, vol. 182(4), pages 1055-1072, February.
    8. Annisette, Marcia, 2017. "Discourse of the professions: The making, normalizing and taming of Ontario's “foreign-trained accountant”," Accounting, Organizations and Society, Elsevier, vol. 60(C), pages 37-61.
    9. Verma, Shraddha, 2015. "Political, economic, social and imperial influences on the establishment of the Institute of Cost and Works Accountants in India post independence," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 31(C), pages 5-22.
    10. Carnegie, Garry D. & O’Connell, Brendan T., 2014. "A longitudinal study of the interplay of corporate collapse, accounting failure and governance change in Australia: Early 1890s to early 2000s," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(6), pages 446-468.
    11. Dean Neu & Gregory D. Saxton & Abu S. Rahaman, 2022. "Social Accountability, Ethics, and the Occupy Wall Street Protests," Journal of Business Ethics, Springer, vol. 180(1), pages 17-31, September.
    12. Luigi Orsenigo & Fabio Pammolli & Massimo Riccaboni & Andrea Bonaccorsi & Giuseppe Turchetti, 1997. "The Evolution of Knowledge and the Dynamics of an Industry Network," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 1(2), pages 147-175, June.
    13. Shenglan Huang & Zhi Chen, 2017. "The Effects of Social Capital on Innovation Performance: From Complex Adaptive System Perspective," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(3), pages 191-191, February.
    14. Carroll, Charles, 1998. "Interdependence and the social structure of rivalry," Research Report 98B24, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    15. Everett, Jeff & Shiraz Rahaman, Abu & Neu, Dean & Saxton, Gregory, 2024. "Letters to the editor, institutional experimentation, and the public accounting professional," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 99(C).
    16. G. Rejikumar & Aswathy Asokan-Ajitha & Sofi Dinesh & Ajay Jose, 2022. "The role of cognitive complexity and risk aversion in online herd behavior," Electronic Commerce Research, Springer, vol. 22(2), pages 585-621, June.
    17. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    18. Rene (J.R.) van den Brink & Osman Palanci & S. Zeynep Alparslan Gok, 2017. "Interval Solutions for Tu-games," Tinbergen Institute Discussion Papers 17-094/II, Tinbergen Institute.
    19. Zhiang (John) Lin & James A. Kitts & Haibin Yang & J. Richard Harrison, 2008. "Elucidating strategic network dynamics through computational modeling," Computational and Mathematical Organization Theory, Springer, vol. 14(3), pages 175-208, September.
    20. Donal G. Saari & Katri K. Sieberg, 1999. "Some Surprising Properties of Power Indices," Discussion Papers 1271, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:accper:v:16:y:2017:i:2:p:83-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1911-3838 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.