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Value distribution in state-owned firms: The case of two companies in Uruguay

Performance Measurement and Management Control: Behavioral Implications and Human Actions

ISBN: 978-1-78350-377-3, eISBN: 978-1-78350-378-0

Publication date: 9 May 2014

Abstract

Purpose

This chapter presents the cases of two State-owned companies in Uruguay: ANTEL (telephone company) and ANCAP (oil company). Since 2008, these firms have been preparing value-added statements (VAS), a report that shows how value is distributed to stakeholders.

Methodology/approach

Qualitative methods, particularly interviews, and analysis of documents.

Findings

VAS reporting became a highly accepted practice in both firms. VAS reports help to better explain the impact of public policies implemented through these companies – a situation that seldom happens in a private firm. This accounting practice is also consistent with the political decision of increasing accountability in State-owned firms.

Research limitations

Since it is a case study research, we cannot generalize conclusions. This study has focused on the beginnings of this experience; further research may adopt a longitudinal approach by exploring how this accounting practice evolves over time.

Practical implications

These reports are not much read by external audiences (e.g., members of parliaments, public officials, journalists, NGOs). In a similar vein, these reports have not been used much for internal managerial purposes. The use of VAS reports for both public policy and management purposes remain untapped opportunities to explore.

Social implications

These companies consider value distribution as a core commitment in their CSR policies and have consequently decided to make that value distribution explicit in a reporting model.

Originality

There are few studies about VAS reporting in Latin America.

Keywords

Acknowledgements

Acknowledgments

The authors are grateful to managers in ANTEL and ANCAP. The authors also appreciate the feedback received from participants at the 7th Conference on Performance Measurement and Management Control – EIASM, held at Barcelona in 2013. The authors are grateful for comments received in the conference “The role of governments in the business and society debate” (Vrije Universiteit, Brussels, 2011), in a presentation at the Center for Capitalism, Globalization and Governance at ESSEC in 2013 and in the ESSEC-HEC joint accounting research seminar in 2013.

Citation

Zicari, A. and Aldama, L.P. (2014), "Value distribution in state-owned firms: The case of two companies in Uruguay", Performance Measurement and Management Control: Behavioral Implications and Human Actions (Studies in Managerial and Financial Accounting, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 317-335. https://doi.org/10.1108/S1479-351220140000028022

Publisher

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Emerald Group Publishing Limited