Action at a distance: Accounting inscriptions and corporate governance of a public sector bank in a developing country. Issue 1 (5th February 2018)

• Record Type: Journal Article
• Authors: Ekanayake, Athula
• Is Part Of: Asian review of accounting. Volume 26:Issue 1(2018)
• Page Start: 39
• Page End: 61
• Publication Date: 2018-02-05
• Subjects: Corporate governance -- Developing countries -- Public sector banks -- Accounting inscriptions -- Action at a distance; Accounting -- Asia -- Periodicals; Accounting -- Pacific Area -- Periodicals; Accounting -- Periodicals; 657.095
• DOI: 10.1108/ARA-03-2017-0053
• Languages: English
• ISSNs: 1321-7348

Abstract

Abstract : Purpose: By using Latour's notion of "action at a distance" (Latour, 1987), the purpose of this paper is to examine the ways in which the government acts at a distance to achieve corporate governance of public sector banks, and the extent to which accounting enables such actions of the government. Design/methodology/approach: This study follows the qualitative research approach and adopts the case study research method. A major public sector bank in Sri Lanka was selected as the case organization for this study. Data were gathered from semi-structured interviews with organizational participants and document study. Findings: The study provides evidence to suggest that inscriptions produced through four areas of accounting, namely external reporting, external auditing, management accounting and internal auditing, have the capacity to develop strong explanations enabling action at a distance and good corporate governance in the case organization. The study also provides evidence to show how the role of accounting in long-distance control and corporate governance in the case organization is influenced by various contextual factors. In particular, the study finds that undue government interference over the case organization to gain the long-distance control have resulted in deteriorating the level of corporate governance. Research limitations/implications: The findings support the literature that examines the accounting in its social context. Practical implications: The findings suggest that actors should be allowed to operate independently, particularly without political expedience and undue influences from pressure groups, which ensure effective utilization of accounting inscriptions by the actors in long-distance control as well as good corporate governance of public sector banks. Originality/value: Although research into accounting in public sector organizations has gained considerable importance in recent times, those studies examining public sector banks are still lacking. The paper aims to fill this gap.