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

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  • 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
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    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).
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    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.

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