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An exploratory study of an early stage R&D-intensive firm under financialization

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  • Gleadle, Pauline
  • Haslam, Colin

Abstract

The financialization literature considers the impact of financial markets on corporate strategy, governance, financial performance and the distribution of resources between various stakeholder groups. Capital market demands modify strategic priorities, governance and managerial narratives about performance because this helps justify value creation and value absorption in an era of shareholder value. The literature on financialization suggests that managers have a tendency to exaggerate performance to boost valuations especially when their interests align with those of the firm's shareholders. In this exploratory study of an R&D-intensive firm “Medco” we consider the extent to which managerial narratives and corporate governance of this R&D-intensive firm reflect a process of financialization.

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  • Gleadle, Pauline & Haslam, Colin, 2010. "An exploratory study of an early stage R&D-intensive firm under financialization," Accounting forum, Elsevier, vol. 34(1), pages 54-65.
    • Handle: RePEc:eee:accfor:v:34:y:2010:i:1:p:54-65
    DOI: 10.1016/j.accfor.2009.10.002
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    References listed on IDEAS

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    1. William Lazonick, 2007. "The US stock market and the governance of innovative enterprise ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 983-1035, December.
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    4. Feng, Hengyi & Froud,Julie & Johal, Sukhdev & Haslam, Colin & Williams, Karel, 2001. "A new business model?," Discussion Papers, Research Unit: Regulation of Work FS II 01-202, WZB Berlin Social Science Center.
    5. Gleadle, Pauline & Cornelius, Nelarine, 2008. "A case study of financialization and EVA®," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(8), pages 1219-1238.
    6. Ezzamel, Mahmoud & Willmott, Hugh & Worthington, Frank, 2008. "Manufacturing shareholder value: The role of accounting in organizational transformation," Accounting, Organizations and Society, Elsevier, vol. 33(2-3), pages 107-140.
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    8. Andersson, Tord & Haslam, Colin & Lee, Edward & Tsitsianis, Nick, 2008. "Financialization directing strategy," Accounting forum, Elsevier, vol. 32(4), pages 261-275.
    9. Tord Andersson & Colin Haslam & Edward Lee & Nick Tsitsianis, 2008. "Financialization directing strategy," Accounting Forum, Taylor & Francis Journals, vol. 32(4), pages 261-275, December.
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    Cited by:

    1. Bay, Charlotta & Catasús, Bino & Johed, Gustav, 2014. "Situating financial literacy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 36-45.
    2. Ionel Jianu & Iulia Jianu, 2018. "The Share Price and Investment: Current Footprints for Future Oil and Gas Industry Performance," Energies, MDPI, vol. 11(2), pages 1-15, February.
    3. 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.
    4. Philipp A. Thompson, 2019. "Financialization and Institutional Environments," Working Papers hal-02139457, HAL.
    5. Siepel, Josh & Nightingale, Paul, 2014. "Anglo-Saxon governance: Similarities, difference and outcomes in a financialised world," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 27-35.

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