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A privatization success story: accounting and narrative expression over time


  • Russell Craig
  • Joel Amernic


Purpose - This paper is the third in a trilogy of papers to explore the use of accounting as a fundamental element in senior management's narrative regarding the privatization of a major transportation enterprise, Canadian National Railway (CN). The paper aims to examine how two accounting performance benchmarks (the operating ratio, and free cash flow) were deployed to help sustain a rhetoric of post-privatization success. The aptness (and the danger) of accounting language in strategic narrative is highlighted. Design/methodology/approach - The paper describes the importance of senior management discourse in the aftermath of a privatization. A narrative perspective is adopted, in which an imagined future post-privatization era initially articulated in accounting language is then told and re-told as the post-privatization years unfold. Accounting performance measures highlighted in the story of success of the privatization in the Annual Letters to Shareholders by the CEOs of CN in the ten years following privatization in 1995, and celebrated in the Annual Report, are examined critically. Findings - The results emphasize the important features and role of accounting language and accounting-based performance benchmark measures in the narrative construction of the success of a privatization by corporate leaders. Research limitations/implications - Case studies possess the strength of specific instance detail and interpretation, and the ostensible weakness of interpretation of a sample of one. But such research can provide for a reframing of conceptual perspectives and stimulate additional efforts to interrogate the role of accounting language in events of major social change. Practical implications - The paper strongly endorses the adoption of a critical analytical perspective by those affected by a major social change (such as a privatization) in which the role of accounting language is subtle, but nonetheless persuasive and enduring. Originality/value - The paper examines a case study in which the narrative framing of success is made rhetorically potent by deploying accounting performance measures. The paper reinforces the view that accounting is not an innocent bystander in the political and narrative manoeuvrings associated with a privatization. Accounting does not axiomatically provide an objective measure of some underlying financial truth, but is part of an arsenal of rhetoric to achieve political ends.

Suggested Citation

  • Russell Craig & Joel Amernic, 2008. "A privatization success story: accounting and narrative expression over time," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 21(8), pages 1085-1115, October.
  • Handle: RePEc:eme:aaajpp:v:21:y:2008:i:8:p:1085-1115

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    References listed on IDEAS

    1. Hines, Ruth D., 1988. "Financial accounting: In communicating reality, we construct reality," Accounting, Organizations and Society, Elsevier, vol. 13(3), pages 251-261, April.
    2. Burchell, Stuart & Clubb, Colin & Hopwood, Anthony & Hughes, John & Nahapiet, Janine, 1980. "The roles of accounting in organizations and society," Accounting, Organizations and Society, Elsevier, vol. 5(1), pages 5-27, January.
    3. Russell Craig & Joel Amernic, 2006. "The mobilization of accounting in preening for privatization," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 19(1), pages 82-95, January.
    4. Russell Craig & Joel Amernic, 2006. "The mobilization of accounting in preening for privatization," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 19(6), pages 82-95, November.
    5. Morgan, Gareth, 1988. "Accounting as reality construction: Towards a new epistemology for accounting practice," Accounting, Organizations and Society, Elsevier, vol. 13(5), pages 477-485, August.
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    Cited by:

    1. Niamh M. Brennan & John P. Conroy, 2013. "Executive hubris: the case of a bank CEO," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 26(2), pages 172-195, February.
    2. Niamh M. Brennan & Doris M. Merkl-Davies, 2014. "Rhetoric and argument in social and environmental reporting: the Dirty Laundry case," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 27(4), pages 602-633, April.
    3. repec:eee:accfor:v:38:y:2014:i:1:p:18-37 is not listed on IDEAS
    4. Hashem Salarzadeh Jenatabadi & Peyman Babashamsi & Datis Khajeheian & Nader Seyyed Amiri, 2016. "Airline Sustainability Modeling: A New Framework with Application of Bayesian Structural Equation Modeling," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-17, November.
    5. repec:eee:accfor:v:36:y:2012:i:3:p:223-230 is not listed on IDEAS
    6. Doris M. Merkl-Davies & Niamh M. Brennan, 2011. "A conceptual framework of impression management: new insights from psychology, sociology and critical perspectives," Accounting and Business Research, Taylor & Francis Journals, vol. 41(5), pages 415-437, December.
    7. repec:eee:accfor:v:36:y:2012:i:3:p:178-193 is not listed on IDEAS
    8. Gustavo Alberto Ruiz Rojas, 2016. "Retórica y contabilidad: de la crítica retórica a la retórica crítica," REVISTA FACULTAD DE CIENCIAS ECONÓMICAS, UNIVERSIDAD MILITAR NUEVA GRANADA, vol. 25(1), pages 243-270, December.
    9. repec:eee:crpeac:v:20:y:2009:i:8:p:875-883 is not listed on IDEAS
    10. Niamh Brennan & Doris M. Merkl-Davies, 2013. "Accounting Narratives and Impression Management," Open Access publications 10197/4949, Research Repository, University College Dublin.


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