Changes to administrative controls in banks after the financial crisis
Purpose This paper aims to explore and explain how administrative controls have been changed as a response to a significant crisis, using the transition of the three largest Icelandic banks from bankrupt to operational entities after the 2008 financial crisis. The Icelandic banks are compared with t...
Published in: | Qualitative Research in Accounting & Management |
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cremerald:10.1108/qram-12-2016-0088 2024-06-23T07:54:04+00:00 Changes to administrative controls in banks after the financial crisis Christensen, Leif Rikhardsson, Pall Rohde, Carsten Batt, Catherine Elisabet 2018 http://dx.doi.org/10.1108/qram-12-2016-0088 https://www.emerald.com/insight/content/doi/10.1108/QRAM-12-2016-0088/full/xml https://www.emerald.com/insight/content/doi/10.1108/QRAM-12-2016-0088/full/html en eng Emerald https://www.emerald.com/insight/site-policies Qualitative Research in Accounting & Management volume 15, issue 2, page 161-180 ISSN 1176-6093 journal-article 2018 cremerald https://doi.org/10.1108/qram-12-2016-0088 2024-06-12T04:05:54Z Purpose This paper aims to explore and explain how administrative controls have been changed as a response to a significant crisis, using the transition of the three largest Icelandic banks from bankrupt to operational entities after the 2008 financial crisis. The Icelandic banks are compared with three Danish banks to separate crisis-driven responses from simple market-driven reactions. Design/methodology/approach Empirical data were collected using semi-structured interviews. The participating Icelandic and Danish banks were considered as two units, which formed the basis for a comparative case study between the two countries. Findings Driven by an understanding of what is expected by the market rather than the need to inform and guide the employees the Icelandic banks implemented a number of revolutionary and formally documented changes. These changes included significant bigger risk management functions and policies and procedures documenting “everything”. However, in both countries, it seems that new values supported by the “tone at the top”, areas with limited formal documentation, are the most important management tools. Research limitations/implications The study relies on interviews with employees, and the actual changes of administrative controls have not been reviewed. The most important implication is that the situated logics in Iceland driven by external institutional pressure initiated a revolutionary implementation of values bypassing existing routines and formalised rules. Originality/value Although the use of management controls has been studied intensively, detailed studies of the banking sector have been lacking. Furthermore, there is limited knowledge of how administrative controls changed in response to the financial crisis. Article in Journal/Newspaper Iceland Emerald Qualitative Research in Accounting & Management 15 2 161 180 |
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English |
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Purpose This paper aims to explore and explain how administrative controls have been changed as a response to a significant crisis, using the transition of the three largest Icelandic banks from bankrupt to operational entities after the 2008 financial crisis. The Icelandic banks are compared with three Danish banks to separate crisis-driven responses from simple market-driven reactions. Design/methodology/approach Empirical data were collected using semi-structured interviews. The participating Icelandic and Danish banks were considered as two units, which formed the basis for a comparative case study between the two countries. Findings Driven by an understanding of what is expected by the market rather than the need to inform and guide the employees the Icelandic banks implemented a number of revolutionary and formally documented changes. These changes included significant bigger risk management functions and policies and procedures documenting “everything”. However, in both countries, it seems that new values supported by the “tone at the top”, areas with limited formal documentation, are the most important management tools. Research limitations/implications The study relies on interviews with employees, and the actual changes of administrative controls have not been reviewed. The most important implication is that the situated logics in Iceland driven by external institutional pressure initiated a revolutionary implementation of values bypassing existing routines and formalised rules. Originality/value Although the use of management controls has been studied intensively, detailed studies of the banking sector have been lacking. Furthermore, there is limited knowledge of how administrative controls changed in response to the financial crisis. |
format |
Article in Journal/Newspaper |
author |
Christensen, Leif Rikhardsson, Pall Rohde, Carsten Batt, Catherine Elisabet |
spellingShingle |
Christensen, Leif Rikhardsson, Pall Rohde, Carsten Batt, Catherine Elisabet Changes to administrative controls in banks after the financial crisis |
author_facet |
Christensen, Leif Rikhardsson, Pall Rohde, Carsten Batt, Catherine Elisabet |
author_sort |
Christensen, Leif |
title |
Changes to administrative controls in banks after the financial crisis |
title_short |
Changes to administrative controls in banks after the financial crisis |
title_full |
Changes to administrative controls in banks after the financial crisis |
title_fullStr |
Changes to administrative controls in banks after the financial crisis |
title_full_unstemmed |
Changes to administrative controls in banks after the financial crisis |
title_sort |
changes to administrative controls in banks after the financial crisis |
publisher |
Emerald |
publishDate |
2018 |
url |
http://dx.doi.org/10.1108/qram-12-2016-0088 https://www.emerald.com/insight/content/doi/10.1108/QRAM-12-2016-0088/full/xml https://www.emerald.com/insight/content/doi/10.1108/QRAM-12-2016-0088/full/html |
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Iceland |
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Iceland |
op_source |
Qualitative Research in Accounting & Management volume 15, issue 2, page 161-180 ISSN 1176-6093 |
op_rights |
https://www.emerald.com/insight/site-policies |
op_doi |
https://doi.org/10.1108/qram-12-2016-0088 |
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Qualitative Research in Accounting & Management |
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15 |
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2 |
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161 |
op_container_end_page |
180 |
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1802646027492130816 |