Conference Paper

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A tentative model of Management Accounting and Control in the Integration Processes of Mergers & Acquisitions
(2005) Beusch, Peter; Department of Business Administration
This article combines the areas of mergers and acquisitions (M&As) and management accounting and control systems (MACS) by developing a tentative model that shows the important variables and how they determine MACS’ involvement in M&A integration processes. M&As have grown, measured both in numbers and size, in recent decades and have become very popular strategic business tactics to achieve economies of scale and scope. In fact, some believe that they have even exceeded the internal or ‘organic’ growth of organizations. However, approximately two of every three M&As fail to achieve the intended goals which were the stated reasons for the business deal. The explanation given for this high failure rate is often bad integration management, and this can also be assumed to be true when it comes to the integration of MACS. The aim with this article is to collect the content of the few explicit and the many implicit studies in the field and build a model that can be used for further research. Hence, this article is the result of a comprehensive literature study and it shows that the role and function of MACS in M&A integration processes can be interpreted in many different ways, above all depending on which perspective, view, or theory is used. From this follows, that the research area under investigation can be recognized in the context of three main dimensions. These are a socio-cultural one, a political-ideological one, and a technical one. These fairly theoretical and research dependent variables also have an impact on how more pragmatic variables are described. Five such main groups of more pragmatic variables are defined in this article and the MACS’ involvement in M&A integration processes is illustrated.
Evaluation of Strategic IT Platform Investments
(2004) Svavarsson, Daniel; Department of Business Administration
Quantitative evaluation of strategic IT investments remains a challenging task in most organisations today. An important element of the problem is that though some investments appear to have little direct benefits, they may still be profitable when they serve as important investment platforms. These IT platforms provide value in terms of enabling options on future potentially profitable contingent investments in applications, delivering new or enhanced business capabilities. The benefits, as well as the costs associated with, for example, investments in an Enterprise Resource Planning (ERP) system are uncertain and difficult to measure. Not only is the value contingent on the performance of the initial platform investment, but ERP systems also provide the opportunity to add future applications that may, or may not, be known at the time of the initial investment. The complexity involved with evaluating the IT platform and its embedded options is hence subject to a number of different types of risk depending on the type of platform, the organisation involved and the industry environment. This paper presents a conceptual framework for classifying different types of risks associated with major IT platform Investments in the AEC (Architecture, Engineering and Construction) environment. It then discusses how a real option methodology can be used to extend the classical Discounted Cash Flow (DCF) approach to evaluate and manage the investment by modelling these risks and the associated strategic flexibility. A simple but powerful binomial lattice model is developed and the methodology illustrated in an example where a general contractor has to choose between three alternative investment strategies. Management is faced with the decision whether to upgrade the companies existing management support system or choosing between two different ERP systems. A concluding discussion covers potential implications of using this dynamic evaluation methodology along with opportunities for future research.
The Danish Guidelines on Intellectual Capital Reporting Towards A European Perspective on Human Resource Disclosures?
(2004) Persson, Oskar; Lindstrii, Emma; Blom, Pontus; Rimmel, Gunnar; Department of Business Administration
Currently, many academics assert that although several companies proclaim their employees as the company’s most valuable resource only a few companies have utilised models and concepts of measuring human resources in their corporate annual reports. Various studies of the users of such information indicate a substantial difference between the type of information that corporations issue in their annual reports and the type of information that is demanded by the users of such reports. Since the concept of intellectual capital became a hot topic for management and accounting practitioners, the interest in reporting voluntary information about corporations’ human resources has increased. In the early days of the IC movement the interest in reporting intellectual capital was widely driven by individual corporate attempts. Denmark might be an exception to the rule as the Danish Ministry of Science, Technology and Innovation sponsored a joint project by accounting researchers and corporations to develop guidelines to report intellectual capital. The focal point of this paper derives from a case study of five Danish corporations that issue intellectual capital statements that are prepared according to this reporting guideline. The paper discusses how these five corporations actually report intellectual capital and how such reports can be used for comparison over years within as well as across corporations. As there is currently a lack of standardisation on reporting intellectual capital and voluntary disclosure about human resources, the paper provides a discussion of the opportunities and threats for European member states were they to apply the Danish guidelines for intellectual capital reporting.
The Role of Energy Efficiency in the Deregulated Swedish Electricity Market
(Proceedings from the ACEEE Summer Study on Energy Efficiency in Buildings. American Council for an Energy-Efficient Economy, Washington, DC., 2000) Bergmasth, Mikael; Nilsson, Lars; Lewald, Anders; Strid, Mats; Department of Business Administration
Four years have passed since January 1996 when retail competition was introduced in the Swedish electricity market. These years have been characterized by a rapid restructuring of the electricity supply industry through mergers and acquisitions, lower electricity prices, and a search for new marketing strategies in the competitive market. General trends and the results of two market surveys, undertaken in 1999, of energy efficiency services from electricity suppliers in Sweden are reported here. One survey targeted a sample of industrial and commercial customers, and one survey targeted all electricity suppliers. Energy services, in particular energy efficiency services, are offered by 83 per cent of the surveyed electricity suppliers. Customer relations and building customer loyalty is reported by 88 per cent of the suppliers as a motivation for offering energy services. Nearly half of the customers report a great confidence in the suppliers' ability and sincerity to deliver energy efficiency services. 22 per cent of the customers have contracted for energy efficiency services and those customers that have contracted for energy services have often contracted for several services. Less than 20 per cent of the customers think energy services is a way for suppliers to distract customers and remove focus from electricity price. In both surveys, roughly half of the respondents report that services are priced separately from electricity. The future role of government to facilitate and support the market for energy efficiency services is discussed based on market experiences so far.

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