The disciplinary power of accounting-based regulation: the case of building societies, circa 1960
AbstractThis paper examines how accounting–based regulation was introduced through the House Purchase and Housing Act, 1959 (HPHA59) and Building Societies Act, 1960 (BSA60). It also tells how it was put into practice by the Registrar of Friendly Societies (RFS). The discussion is framed by the so called ‘disciplinary perspective’ of accounting as represented by Hoskin and Macve (1986; 1988; 1994a; 1994b; 1996; 2000). Fieldwork documents cases of intervention by the RFS under new powers granted by BSA60. These new powers were used to discipline targeted societies or those revealing inadequate use of their funds and thus, observed important deviations from specified accounting-based criteria which was generally recognized as financially sound within the industry. As a result we provide evidence of how accounting-based regulation affected the operation of the societies. This evidence amends other studies claiming that managers of British financial intermediaries disregarded accounting information in their operation and strategic plans (or that they incorporated such criteria until the 1990s).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28374.
Date of creation: Jan 2011
Date of revision:
accounting-based regulation; House Purchase and Housing Act; 1959 (HPHA59); Building Societies Act; 1960 (BSA60); Chief Registrar of Friendly Societies (CRFS); the Building Societies Association (Association); disciplinary power; reserve ratio;
Find related papers by JEL classification:
- N8 - Economic History - - Micro-Business History
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
- N2 - Economic History - - Financial Markets and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-02-05 (Accounting & Auditing)
- NEP-ALL-2011-02-05 (All new papers)
- NEP-BAN-2011-02-05 (Banking)
- NEP-HIS-2011-02-05 (Business, Economic & Financial History)
- NEP-REG-2011-02-05 (Regulation)
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