Financialized accounts: A stakeholder account of cash distribution in the S&P 500 1990-2005

Tord Andersson; Colin Haslam; Edward Lee; N. Tsitsianis

doi:10.1016/j.accfor.2007.06.002

Financialized accounts: A stakeholder account of cash distribution in the S&P 500 1990-2005

Tord Andersson, Colin Haslam, Edward Lee, N. Tsitsianis

Hertfordshire Business School

Research output: Contribution to journal › Article › peer-review

11 Citations (Scopus)

Abstract

In this paper, we construct a financialized account of corporate restructuring in S&P 500 survivor firms where corporate transactions are accounted for at fair value or are marked to market. Accounting practitioners are preoccupied with the technical aspects of fair value reporting, but the outcome of absorbing wealth accumulation into corporate sector balance sheets is not simply a neutral technical issue. In financialized accounts blending current income and expenditure with capital market value amplifies the need to distribute cash to equity holders. In financialized accounts realignments generated by a product market downturn are magnified because value at risk and corrective restructuring will be wired into balance sheet fair value not historic cost

Original language	English
Pages (from-to)	217-232
Number of pages	16
Journal	Accounting Forum
Volume	31
Issue number	3
DOIs	https://doi.org/10.1016/j.accfor.2007.06.002
Publication status	Published - 2007

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10.1016/j.accfor.2007.06.002

http://www.sciencedirect.com/science/article/pii/S0155998207000324

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abstract = "In this paper, we construct a financialized account of corporate restructuring in S&P 500 survivor firms where corporate transactions are accounted for at fair value or are marked to market. Accounting practitioners are preoccupied with the technical aspects of fair value reporting, but the outcome of absorbing wealth accumulation into corporate sector balance sheets is not simply a neutral technical issue. In financialized accounts blending current income and expenditure with capital market value amplifies the need to distribute cash to equity holders. In financialized accounts realignments generated by a product market downturn are magnified because value at risk and corrective restructuring will be wired into balance sheet fair value not historic cost",

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Financialized accounts: A stakeholder account of cash distribution in the S&P 500 1990-2005

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