An Exploration of the Governance and Accountability of UK Defined Benefit Pension Schemes

An Exploration of the Governance and Accountability of UK Defined Benefit Pension Schemes Alison M Fox A Thesis Submitted to the University of Dundee in Fulfilment of the Requirements for the Degree of Doctor of Philosophy, September, 2010 Dedication To Stuart, my best friend, and our four beautiful boys: Drew, Lewis, Matthew and Christopher ii Table of Contents List of Tables List of Figures Acronyms Acknowledgements Declaration Certificate Abstract Chapter Introduction 1.1 A Topic Worthy of Study 1.2 Scope of the Research 1.3 Thesis Content 1.4 The Contribution to Knowledge Chapter Chapter Page vii viii ix xi xii xii xiii 11 The Development of UK Pension Scheme Governance 2.1 Introduction 2.2 The Purpose and Potential Definitions of Corporate Governance 2.3 The Nature of Pension Schemes in the UK 2.4 The Development of Pension Scheme Governance Mechanisms and their Regulation 2.4.1 UK Pension Scheme Governance 2.4.2 A Global Perspective of Pension Scheme Governance 2.5 The Pensions Regulator 2.6 Application of Corporate Governance Principles in a Pension Context 2.6.1 Corporate and Pension Scheme Governance: similar Stakeholders 2.6.2 A Comparison of the Combined Code (2006) and the Regulation of UK Pension Scheme Governance 2.7 Prior Research Relating to Pension Scheme Governance 2.8 Potential Governance Relationships in UK Pension Schemes 2.9 Summary and Conclusion 13 13 15 Accountability and UK Pension Schemes 3.1 Introduction 3.2 Definitions of Accountability 3.3 Stakeholders to whom Organisations are Accountable 62 62 63 67 3.4 3.5 3.6 3.7 69 72 79 82 Discharging Accountability Accountability in Different Organisational Contexts The Concept of Full Accountability Accountability in the Organisational Context of UK Pension Schemes 3.8 Different Types of UK Pension Scheme Accountability 3.8.1 The Annual Reports of UK Pension Schemes iii 20 26 26 35 38 43 43 47 53 58 60 86 89 3.8.2 Accounting of Pension Schemes in the Annual Reports of UK sponsoring Employers 3.8.2(a) SSAP 24 Accounting for Pension Costs 3.8.2(b) FRS 17 Retirement Benefits 3.8.2(c) IAS 19 Employee Benefits 3.8.2(d) A Comparison of the Disclosure Requirements of SSAP 24, FRS 17 and IAS 19 3.9 Summary and Conclusion Chapter Chapter 92 93 94 97 98 106 Research Design: Methodology and Methods 4.1 Introduction 4.2 Philosophical Assumptions and Research Methodology: Burrell and Morgan’s (1979) Framework 4.2.1 Assumptions about the Nature of Social Science 4.2.2 Assumptions about the Nature of Society 4.2.3 Four Potential Paradigms of Social Theory 4.2.4 A Critique of the Burrell and Morgan (1979) Framework 4.3 Research Objectives and the Selected Research Methods 4.4 Interviews 4.5 Content Analysis 4.5.1 Sampling Choice and Sampling Unit 4.5.2 The Proportion of a Page as a Unit of Analysis 4.5.3 Categorisation of the Data: Ias 19 Disclosures 4.5.4 Pilot Study 4.6 Conclusion 108 108 109 Understanding UK Pension Scheme Governance and Accountability 5.1 Introduction 5.2 Interviewees, Sponsoring Employers and their Pension Schemes 5.3 Understanding UK Pension Scheme Governance 5.3.1 The Nature and Composition of the Trustee Board 5.3.2 The Operation of the Trustee Board 136 iv 109 112 113 115 117 119 123 130 133 133 134 135 136 137 140 140 145 5.3.3 The Trustee’s Role and Contribution to the UK Pension Scheme Governance 5.3.4 The Roles of Advisers and Regulators and their Contribution to UK Pension Scheme Governance 5.4 Recent Changes in UK Pension Scheme Governance Processes 5.5 Understanding UK Pension Scheme Accountability 5.5.1 Accountability Relationships Where the Trustee Adopts the Role of the Accountee 5.5.1(a) The Sub-committee’s Accountability to the Trustee Board 5.5.1(b) The Fund Managers’s Accountability to the Trustee Board 5.5.1(c) The Actuary’s Accountability to the Trustee Board 5.5.2 Accountability Relationships Where the Trustee Adopts the Role of the Accountor 5.5.2(a) The Annual Report of UK Pension Schemes 5.5.2(b) The Statement of Investment Principles 5.5.2(c) The Summary Funding Statement 5.5.2(d) The Popular Report 5.5.2(e) Other Pension Scheme Media 5.6 Discussion and Conclusion 151 A Content Analysis of Sponsoring Employers UK Pension Scheme Disclosures Introduction The Interviewees’ Perceptions of the FRS 17 and IAS 19 Disclosures A Content Analysis of the Post-retirement Benefit Disclosures of UK Sponsoring Employers 6.3.1 Categories of Post-retirement Benefit Disclosures 6.3.2 Descriptive Statistics 6.3.3 An Analysis of the Type of Disclosures made Across the Years 6.3.4 An Analysis of the Year-on-year Changes in the Types of Disclosures 6.3.5 An Analysis of the Factors that Determine the Postretirement Benefit Disclosures Summary, Discussion and Conclusion 199 Chapter 6.1 6.2 6.3 6.4 Chapter Conclusion 7.1 Introduction 7.2 Main Findings 7.3 Limitations of the Current Research and the Potential for Future Research 7.4 Some Concluding Thoughts v 157 166 171 174 174 177 178 179 182 186 187 189 192 194 199 200 205 205 209 213 228 235 244 250 250 251 256 260 Appendices The Development of UK Corporate Governance Codes of Practice The Principles and Provisions of the Combined Code (2006) Global Perspectives of Corporate Governance A Comparison of the Combined Code (2006) and the PR’s Governance Guidance 5(i) Interview Questions for Trustees 5(ii) Interview Questions for Pension Officers and those Stakeholders Associated with the Sponsoring Employer 5(iii) Interview Questions for Auditors, Actuaries and Advisors 5(iv) Interview Questions for Fund Managers 5(v) Interview Questions for Regulators 5(vi) Interview Questions for users The Content Analysis Grid Content Analysis Template/Record Sheet Content Analysis Decision Rules An Analysis of the Location of UK Post-retirement Benefit Disclosures and How These Disclosures are Made in the Financial Statements of the Sponsoring Employer 10 The Content Analysis Based on the % of the Annual Report 11 Examples of Disclosure References 262 268 284 287 312 315 318 321 323 325 327 328 329 332 349 365 383 vi List of Tables 1.1 2.1 2.2 2.3 2.4 2.5 2.6 3.1 3.2 4.1 4.2 4.3 4.4 5.1 5.2 5.3 5.4 5.5 6.1 6.2 6.3 6.4 6.5 6.6 USS Funding Position at 31/3/09 A Summary of the PLRC (1993) Recommendations A Summary of the Myners Report (2001) The OECD Guidance for Pension Scheme Governance A Summary of the PR’s Governance Pronouncements A Comparison of the Stakeholders involved in Corporate and Pension Scheme Governance A Comparison of the Combined Code (2006) and the Regulation of UK Pension Scheme Governance Potential UK Pension Scheme Accountability Relationships A Comparison of the Disclosure Requirements of SSAP 24, FRS 17, and IAS 19 Two theories of society: order and conflict Details of how content analysis achieves it objectives Content Analysis Sample Details Description of companies included in the Sample A Profile of the Interviewees and their Associated Sponsoring Employers Information Relating to the Pension Schemes Associated with the Interviewees An Analysis of the Composition of the Corporate Trustee Boards An Analysis of the Composition of the Unincorporated Trustee Boards A Summary of the Accountability Relationships in UK Pension Schemes Descriptive Statistics of the Post-retirement Benefit Disclosures (200005) An Analysis of the Mean Type of Post-retirement Benefit Disclosures made Across the Years in the Annual Reports of the Sponsoring Employer An Analysis of the Median Type of Post-retirement Benefit Disclosures made Across the Years in the Annual Reports of the Sponsoring Employers A Year-on-year Comparison of the Mean Type of Post-retirement Benefit Disclosures in the Annual report of the Sponsoring Employer A Year-on-year Comparison of the Median Type of Post-retirement Benefit Disclosures in the Annual report of the Sponsoring Employer General Linear Model for the Total and Type of Post-retirement Benefit Disclosures vii 29 33 36 42 46 49 82 100 112 124 130 132 138 139 142 144 173 209 215 216 229 230 237 List of Figures 1.1 2.1 2.2 3.1 3.2 3.3 3.4 4.1 4.2 6.1 6.2 6.3 6.4 6.5 The PPF 7800 Index The Nature of Pension Schemes in the UK Potential Governance Relationships in UK Pension Schemes The Accountability Relationship (Gray et al., 1987) Stewart’s Ladder of Accountability (1984) A Concept of Full Accountability using both Gray et al (1987) and Stewart (1984) The Reporting Mechanisms of a UK Pension Scheme and its Sponsoring employer The Subjective-Objective Dimensions of the Assumptions Relevant to Understanding Social Science Research Burrell and Morgan’s (1979) Classification of Social Science Research Mean Pages of the Total Disclosure Analysed by Year Mean % of the Total Disclosure Analysed by Year Mean Pages of the Disclosure Type Analysed by Year Mean Pages of the Total Disclosure Analysed by Sector Mean Pages of the Disclosure Type Analysed by Sector viii 22 59 65 74 80 88 110 114 212 212 222 240 242 Acronyms ASB Accounting Standards Board CEO Chief Executive Officer DB Defined Benefit DC Defined Contribution ED Executive Director ENT Employer Nominated Trustee FRC Financial Reporting Council FRRP Financial Reporting Review Panel FRS Financial Reporting Standard IAS International Accounting Standard ICAEW Institute of Chartered Accountants in England and Wales ICAS Institute of Chartered Accountants of Scotland IFRS International Financial Reporting Standard MNT Member Nominated Trustee NAPF National Association of Pension Funds NED Non-executive Director OECD Organisation for Economic Co-operation and Development OPB Occupational Pensions Board OPRA Occupational Pensions Regulatory Authority PLR Pension Law Review PLRC The Pension Law Review Committee PPF Pension Protection Fund PR Pension Regulator PRAG Pensions Research Accounting Group ix SORP Statement of Recommended Practice SORIE Statement of Recognised Income and Expense USS Universities Superannuation Scheme x Blankley, A and Swanson, E (1995) ‘A Longitudinal Study of SFAS 87 Pension Rate Assumptions’, Horizons, Vol 9(4), pp.1-21 Boland, R.J (1989) “Beyond the Objectivist and the Subjectivist: Learning to Read Accounting as Text”, Accounting, Organisations and Society, Vol 14, No 5/6, pp 591-604 Botosan, C (1997) “Disclosure Level and the Cost of Equity Capital”, The Accounting Review, Vol 72, No 3, pp 323-349 Boyce (1995) BPP Publishing (1999) ACCA Study Text: Professional Paper 13 Financial Reporting Environment, BPP Publishing Limited: London Bream, R and Taylor, A (2006) “Anger as Scottish Power Alters Pensions”, Financial Times, 11/1/06, p Brennan, N and Solomon, J (2008) “Corporate Governance, Accountability and Mechanisms of Accountability: an overview”, Accounting, Auditing & Accountability Journal, Vol 21, No 7, pp 885-906 Broadbent, J and Laughlin, R (2003), ‘Control and Legitimation in Government Accountability Processes: The Private Finance Initiative in the UK’, Critical Perspectives on Accounting, Vol 14, pp 23-48 Broadbent, J., Dietrich, M and Laughlin, R (1996), “The Development of PrincipalAgent, Contracting and Accountability Relationships in the Public Sector: Conceptual and Cultural Problems”, Critical Perspectives on Accounting, Vol 7, pp 259-284 Bryman, A (2001) Social Research Methods, Oxford University Press Inc.: New York Burgess, K (2005) “Companies Facing £130bn Pension Gap”, Financial Times, 7/12/05, p.3 Burrell, G and Morgan, G (1979) Socialogical Paradigms and Organisational Analysis, Heinemann: London Bush, T (2005) Divided by common language London: The Institute of Chartered Accountants in England and Wales Bushman, R and Smith, A (2001) “Financial accounting information and corporate governance”, Journal of Accounting and Economics, Vol 32, pp 237-333 Cadbury, Sir Adrian (1992) Report of the Committee on the Financial Aspects of Corporate Governance London: Gee & Co Ltd Camfferman, K (1997) Voluntary Annual Report Disclosures by Listed Dutch Companies, 1945-1983, New York and London: Garland Publishing 388 Cardinale, M (2007) “Corporate Pension Funding and Credit Spreads”, Financial Analysts Journal, Vol 63, No 5, pp 82-101 Carney, T (1971) “Content Analysis: A Review Essay”, Historical Methods Newsletter, Vol 4., No 2., pp 52-61 Chua, F.G (1986) “Radical Developments in Accounting Thought”, The Accounting Review, Vol LXI, No.4, pp 601-631 Clark, G (2008) ‘Pension fund governance: expertise and organisational form’ in J Evans, M Orsag and J Piggott, ed Pension Fund Governance pp.9-30 Cheltenham: Edward Elgar Publishing Ltd Clark, G (2000) ‘The functional and spatial structure of the investment management industry’, Geoforum, Vol.31, pp.71-86 Clark, G (2004) ‘Pension fund governance: expertise and organizational form’, Journal of Pension Economics and Finance, Vol 3(2), pp.233-253 Clark, G (2006) ‘Regulation of Pension Fund Governance’, in Clark, G., Munnell, A and Orszag, M (Eds) Oxford Handbook of Pensions and Retirement Income, Oxford University Press, New York Clark, G., Caerlewy-Smith, E and Marshall, J (2006) ‘Pension fund trustee competence: decision making in problems relevant to investment practice’, Journal of Pension Economics and Finance, Vol 5(1), pp.91-110 Clark, G and Urwin, R (2008) ‘Best-practice pension fund governance’, Journal of Asset Management, Vol.9(1), pp.2-21 Clement, R (2005) ‘The lessons from stakeholder theory for U.S business leaders’, Business Horizons, Vol 48, pp.255-264 Cocco, J and Volpin, P (2007) “Corporate Governance of Pension Plans: The U.K Evidence”, Financial Analysts Journal, Vol 63, No 1, pp 70-83 Cohen, N (2005) “Pension Scheme Shortfall Widens to £75bn for FTSE 100 Companies”, Financial Times, 27/2/05, p.1 Cohen, N (2006) “Benefits Rethink”, Financial Times, 5/1/06, p.1 Coles, J., McWilliams, V and Sen, N (2001) “An examination of the relationship of governance mechanisms to performance”, Journal of Management, Vol 27, No 1, pp 23-50 Coronado, J and Sharpe, S (2003) ‘Did Pension Plan Accounting Contribute to a Stock Market Bubble?’ Brookings Papers on Economic Activity, Vol 1, pp.323-371 389 Crawford, L., Dunne, T., Hannah, G and Stevenson, L (2008) An Exploration of Scottish Charities’ Governance and Accountability, ICAS: Edinburgh Cresswell, J (2003) Research Design: Qualitative, Quantitative and Mixed Method Approach, Sage Publications Ltd.: London Dalton, D & Dalton, C (2006) ‘Spotlight on Corporate Governance’, Business Horizons, Vol 49, pp 91-95 Davis, P (2004), ‘Is there a Pensions Crisis in the U.K.?’, The Geneva Papers on Risk and Insurance, Vol 3, pp 343-370 Denscombe, M (2007) The Good Research Guide: For Small-Scale Social Research Projects, Maidenhead: Open University Press Donaldson, T (1982) “Constructing a Social Contract for Business”, Corporations and Mortality, Englewood Cliffs, NJ: Prentice Hall Donaldson, T and Preston, L (1995) ‘A Stakeholder Theory of the Corporation: Concepts, evidence and implications’, Academy of Management Review, Vol 20(1), pp.65-91 Dunne, T (2003) Derivatives Reporting: the Implications of Recent Accounting Standards for Corporate Governance and Accountability, Unpublished PhD Thesis, University of Dundee Dunne, T., Fifield, S., Finningham, G., Fox, A., Hannah, G., Helliar, C., Power, D and Veneziani, M (2008) The Implementation of IFRS in the UK, Italy and Ireland, ICAS: Edinburgh Dunsire, A (1978) Control in a Bureaucracy: The Execution Process, St Martin’s Press: New York Eriksson, P and Kovalainen, A (2008) Qualitative Methods in Business Resaerch, Sage Publications Ltd.: London Epstein, M (1992) ‘Pension funds should practice what they preach’, Business and Society Review, Vol 83, pp 60-61 Evans, J., Orszag, M and Piggott, J (2008) Pension Fund Governance Cheltenham: Edward Elgar Publishing Ltd Fama, E and Jensen, M (1983) ‘Separation of Ownership and Control’, Journal of Law and Economics, Vol 26, pp.301-325 Fasshauer, J., Glaum, M and Street, D (2008), Adoption of IAS 19 by Europe’s Premier Listed Companies: Corridor Approach versus Full Recognition, [online], Available from the World Wide Web: http://www.accaglobal.com/general/activities/research/reports/global_integration/rr_1 00, [accessed 29/6/09] 390 Feng, L (2001) “The Institutional Arrangements and the Quality of Accounting Information: A Case Study”, Feng, L (2004) “Can Accounting Standards Enhance Accounting Information Quality”, Fifield, S., Finningham, G., Fox, A and Power, D (2011) “A Cross-country Analysis of IFRS Reconciliation Statements, Journal of Applied Accounting Research, Vol 11 (forthcoming) Financial Reporting Council (2009(a)) Corporate Governance http://www.frc.org.uk/corporate/ Available at: Financial Reporting Council (2010) UK Corporate Governance Code Available at: http://www.frc.org.uk/corporate/reviewCombined.cfm Financial Reporting Review Panel, (2006) Report by the Financial Reporting Review Panel on the Results of its Review into Defined-benefit Disclosures by Companies under both IFRS and UK GAAP, [online], Available from the World Wide Web: [PDF report], http://www.frc.org.uk/images/uploaded/documents/010806%20%20final%20report.pdf, [accessed 29/6/09] Finningham, G (2010) The Impact of the Introduction of IFRS on Corporate Annual Reports and Accounts in the UK, Unpublished PhD Thesis, University of Dundee Forbes, W and Watson, R (1993) “Managerial Remuneration and Corporate Governance: A Review of the Issues, Evidence and Cadbury Committee Proposals”, Accounting and Business Research, Vol 23, No 91A, pp 331-338 Franzoni, F and Marin, J (2006) ‘Pension Plan Funding and Stock market Efficiency’, Journal of Finance, Vol LXI (2), pp 921-956 Freeman, E (1984) Strategic Management: A Stakeholder Approach, Boston: Pitman Press Friedman, M (1970) “The Social Responsibility of Business is to Increase its Profits”, New York Times Magazine, September, pp 163-167 Gallhofer, S and Haslam, J (1993), “Approaching Corporate Accountability\; \fragments from the Past”, Accounting and Business Research, Vol 23, No 91A, pp 320-330 Gallhofer, S and Haslam, J (2003) Accounting and emancipation: some critical interventions, Routledge: New York Gerakos, J (2007) ‘CEO pensions: Disclosure, Managerial Power, and Optimal Contracting Pension Research Council Working Paper, Wharton School, University of Pennsylvania, available at SSRN: http:/ssm.com/abstract=982180 391 Glaum, M (2009) “Pension Accounting and Research: A Review”, Accounting and Business Research, Special Issue, Vol 39, No 3, pp 273-311 Godwin, J., Goldberg, S and Duchac, J (1996) ‘An Empirical Analysis of Factors Associated with Changes in Pension-Plan Interest-Rate Assumptions’, Accounting, Auditing and Finance, Vol 11(2), pp 305-323 Godwin, N (1999) ‘An Examination of Pension Actuarial Assumptions Over the Decade Following the Issuance of FAS 87’, Journal of Pensions Planning and Compliance, Vol 25(1), pp 62-75 Goodwin, G & Seow, J.L (2002) ‘The Influence of Corporate Governance Mechanisms on the Quality of Financial Reporting and Auditing: Perceptions of Auditors and Directors in Singapore’, Accounting and Finance, Vol 42, pp 195-223 Gray, R (1992), “Accounting and Environmentalism: An Exploration of the Challenge of Gently Accounting for Accountability, Transparency and Sustainability”, Accounting, Organisations & Society, Vol 17, No 5, pp.399-425 Gray, R (1994), “Accounting, the Accountancy Profession and the Environmental Crisis (or can Accountancy Save the World?)”, Meditari, pp.1-51 Gray, R H., Owen, D and Maunders, K (1991), “Accountability, Corporate Social Reporting and the External Social Audit” Advances in Public Interest Accounting, Vol 4, pp 1-21 Gray, R., Kouhy, R and Lavers, S (1995) “Corporate Social and Environmental Reporting: A Review of the Literature and a Longitudinal Study of UK Disclosure”, Accounting, Auditing & Accountability Journal, Vol 8, No 2, pp.47-77 Gray, R., Owen D and Adams, C., (1996), Accounting and Accountability: Changes and Challenges in Corporate, Social and Environmental Reporting, Prentice Hall Europe, Hemel Hempstead Gray, R., Owen, D and Maunders, K., (1987), Corporate Social Reporting: Accounting and Accountability, Prentice Hall Europe, Hemel Hempstead Greenbury Report, The (July 1995) Directors’ Remuneration (report of a study group chaired by Sir Richard Greenbury), Gee Professional Publishing, London Grinstein, Y and Michaely, R (2005) “Institutional Holdings and Payout Policy”, The Journal of Finance, Vol LX, No 3, pp 1389-1426 Hall, A., Blass, F., Ferris, G and Massengale, R (2004) ‘Leader reputation and accountability in organisations: implications for dysfunctional leader behaviour’, The Leardership Quarterly, Vol 15, pp.515-536 Hampel Report, The (1998) The Final Report, The Committee on Corporate Governance and Gee Professional Publishing, London 392 Hannah, G (2003) Accountabilitiy in the primary care sector of the NHS in Dundee: an analysis of recent reforms, Unpublished PhD Thesis, University of Dundee Hart, O (1995) ‘Corporate Governance: Some Theories and Implications’, The Economic Journal, 105 (May), pp 678-689 Helbronner, C (2005) “Pension plan governance and risk management: A Canadian perspective”, Pensions, Vol 10, No 3, pp 221–235 Higgs Report, The (January 2003) Review of the Role and Effectiveness of NonExecutive Directors, Department of Trade and Industry, London Hines, R (1988) ‘Financial Accounting: In communicating reality, we construct reality’, Accounting, Organizations and Society, Vol 13(3), pp 251-261 Hinks, G (2002), [online], Available from the World Wide Web: URL: http://www.accountancy age.com/News/1130206 [accessed 21/10/03] Hinz, R and Mataoanu, A (2005) “Pension Supervision: Understanding International Practice and Country Context”, Social Protection Discussion Paper Series, Available at: http://siteresources.worldbank.org/SOCIALPROTECTION/Resources/0524.pdf [accessed 2/2/08] HMSO (2001) Statutory Instrument 1986 Directors’ Remuneration Report Regulations 2002 Ho, S and Wong, K (2001) ‘A Study of the Relationship Between Corporate Governance Structures and the Extent of Voluntary Disclosure’, Journal of International Auditing Accounting and Taxation, Vol 10, pp 139-156 Holthausen, R and Leftwich, R (1983) ‘The Economic Consequences of Accounting Choice Implications of Costly Contracting and Monitoring’, Journal of Accounting and Economics, Vol 5, pp 77-117 Hopwood, A (1990) “Accounting and Organisation Change”, Accounting, Auditing & Accountability Journal, Vol 3, No 1, pp 7-17 Hotchkiss, E and Lawrence, S (2002) “Empirical evidence on the existence of dividend clienteles”, Working paper, Boston College Huse, M (2005) ‘Accountability and Creating Accountability: a Framework for Exploring Behavioural Perspectives of Corporate Governance’, British Journal of Management, Vol 16, pp 65-79 Ijiri, Y (1983) “On the accountability-based conceptual framework of accounting”, Journal of Accounting and Public Policy, Vol 2, No 2, pp 75-81 Institute of Chartered Accountants of England and Wales, (2007) EU Implementation of IFRS and the Fair Value Directive: A report for the European Commision, October (London) 393 International Accounting Standards Board, (1998), International Accounting Standard IAS 19: Employee Benefits, London, IASCF Publications International Accounting Standards Board, (2004), Amendment to International Accounting Standard IAS 19 Employee Benefits: Actuarial Gains and Losses, Group Plans and Disclosures, London, IASCF Publications International Accounting Standards Board, (2008), An Improved Conceptual Framework for Financial Reporting: Chapter 1: The Objective of Financial Reporting; Chapter 2: Qualitative Characteristics and Constraints of DecisionUseful Financial Reporting Information, London, IASCF Publications Jackson, P.M (1982) The Political Economy of Bureaucracy, Philip Allan: Oxford Jenson, M and Meckling, W (1976) ‘Theory of the firm: managerial behaviour, agency costs and ownership structure’, Journal of Financial Economics, October, pp 305-360 Jankowicz, A (2005) Business Research Projects, London: Thomson Learning Jenson, M and Meckling W (1976) “Theory of the Firm:Managerial Behaviour, agency costs and ownership structure”, Journal of Financial Economics, Vol 3, October, pp.305-360 Jin, L., Merton, R and Bodie, Z (2004), ‘Do a Firm's Equity Returns Reflect the Risk of Its Pension Plan?’ NBER Working Paper No W10650 Jones, M and Shoemaker, P (1994) “Accounting Narratives: A Review of Empirical Studies of Content and Readability”, Journal of Accounting Literature, Vol 13, pp 142-184 Journal of Pension Economics and Finance (2009) http://journals.cambridge.org/action/displayJournal?jid=PEF Available at: Kakabadse, N., Kakabadse, A and Kouzmin, A (2003) “Pension Fund Trustees: Role and Contribution”, European Management Journal Vol 21, No 3, pp 376–386 Kalyta, P and Magnan, M (2008) ‘Executive PensionsDisclosure Quality and Rent Extractions’, Journal of Accounting and Public Policy, Vol 27, pp 133-166 Kay, J and Silberton, S (1995) “Corporate Governance”, National Institute for Economic Review, DTI, Modern Company Law for a Competitive Economy-the Strategic Framework (1999) Ch.5 Kassarjian, H (1977) “Content Analysis in Consumer Research”, Journal of Consumer Research, Vol 4., pp.8-18 Keasey, K and Wright, M (1993), ‘Issues In Corporate Accountability And Governance: An Editorial’, Accounting and Business Research, Vol 23., No 91A, pp.291-303 394 Keasey, K, Thompson, S and Wright, M (1997) Corporate Governance: Economic, Management and Financial Issues New York: Oxford University Press Kiosse, P and Peasnell, K (2009) “Have Changes in Pension Accounting Changed Pension Provision? A Review of the Evidence”, Accounting and Business Research, Vol 39, No 3, pp 255-267 Klumpes, P (2001) ‘Implications of four theoretical perspectives for pension accounting research’, Journal of Accounting Literature Vol 20, pp 30-61 Klumpes, P (2000) “Incentives and Disincentives for Voluntary Disclosure by Pension Funds: International Evidence”, Accounting and Business Research, Vol 30 No pp 287-298 Klumpes, P and Manson, S (2000) ‘Compliance with the revised SORP ‘Financial reports of pension schemes’’, Occasional Research Paper No 32, ACCA: London Klumpes, P And McMeeking, K (2007) “Stock Market Sensitivity to UK Firms’ Pension Discounting Assumptions”, Risk Management and Insurance Review, Vol 10, No 2, pp 221–246 Klumpes, P., Whittington, M and Li, Y (2009) “Determinants of the Pension Curtailment Decisions of UK Firms, Journal of Business Finance & Accounting, Vol 36, Nos & 8, pp 899–924 Krippendorff, K (2004) Content Analysis An Introduction to its Methodology, Sage Publications Ltd.: London Kuhn, T (1970) The Structure of Scientific Revolutions, 2nd Ed., University of Chicago Press Kvale, S (2007) Doing Interviews, Sage Publications Ltd.: London Landsman, W and Ohlson, J (1990) ‘Evaluation of Market Efficiency for Supplementary Accounting Disclosures: the Case of Pension Assets and Liabilities’, Contemporary Accounting Research, Vol 7(1), pp.185-189 Lane, Clark and Peacock (2010) ‘Accounting for Pensions: Annual Survey’, London Lang, M and Lundholm, R (1993) “Cross-sectional Determinants of Analyst Ratings of Corporate Disclosures”, Journal of Accounting Research, Vol 31, No 2., pp 246258 La Porta, R., Lopez-de-Silanes, F., Shleifer, A and Vishny, R (1998) “Investor Protection and Corporate Governance ”, Journal of Financial Economics, Vol 58 (1), pp 3-27 395 Laughlin, R (1990), ‘A Model of Financial Accountability and the Church of England’, Financial Accountability and Management, Vol 6, No 2, pp 93-115 Laughlin, R (1991), “Environmental disturbances and organisational transitions and transformations; some alternative models”, Organization Studies, Vol.12, No 2, pp 209-226 Laughlin, R (1995) “Empirical Research in Accounting: Alternative Approaches and a case for “middle-range” Thinking”, Accounting, Auditing & Accountability Journal, Vol 8, No 1, pp 63-87 Lee, T., and Tweedie, D (1977) “The private shareholder and the corporate report” London: The Institute of Chartered Accountants in England and Wales Liguo, L (2003) “An Empirical Research on the Relationship Between Corporate Governance and the Quality of Accounting Information”, Macdonald, N and Beattie, A (1993) ‘The Corporate Governance Jigsaw’, Accounting and Business Research, Vol 23, No 91A, pp 304-310 Mallin, C (2007) Corporate Governance New York: Oxford University Press Marston, C and Shrives, P (1991) “The use of disclosure indices in accounting research: A review article”, The British Accounting Review, Vol, 23, No 3, pp 195210 McCarthy, D and Neuberger, A (2005) ‘The Pension Protection Fund’, Fiscal Studies, Vol.26 (2), pp.139-167 Middleton, C (2007), An Analysis of Equity Investment in the Emerging Stock Markets of Central and Eastern Europe, Unpublished PhD, University of Dundee Milne, M and Adler, R (1999) “Exploring the Reliability of Social and Environmental Disclosures Content Analysis”, Accounting, Auditing & Accountability Journal, Vol 12, No 2, pp.237-256 Minghai, W (2005) “Improvement and Application of Empirical Research on Accounting Information Quality, Monks, R (2008) Corporacy: How CEOs and the Business Round Table Highjacked the World’s Greatest Wealth Machine – and how to get it back, New York, Wiley Mouck, T (1994) ‘Corporate Accountability and Rorty’s Utopian Liberalism’, AAAJ, Vol 7(6), pp.6-30 Morley, J (2002), [online], Available from the World Wide Web: URL: http://www.accountancy age.com/Comment/ 1128102 [accessed 21/10/03] Mulligan, M (2010) FT 31/6/10 “BA and Iberia agree holding structure” 396 Munro, R and Hatherly, D (1993), “Accountability and the New Commercial Agenda”, Critical Perspectives on Accounting, 4, pp.369-395 Murphy, A and Topyan, K (2005) ‘Corporate Governance: A Critical Survey of Key Concepts, Issues, and Recent Reforms in the US’, Employee Responsibilities and Rights Journal, Vol 17, No.2, June, pp 75-89 Myners’ Report (2001) Myners Report on Institutional Investment London: HM Treasury Napier, C (2009) “The Logic of Pension Accounting”, Accounting and Business Research, Vol 39, No 3, pp.231-249 National Association of Pension Funds, (2003), ‘Workers and Pensions – a brief report’, Annual Survey, August National Association of Pension Funds (2005) “Pension Scheme Governance – Fit for the 21st Century”, July National Association of Pension Funds (2009) “Pension Provision and the Economic Crisis”, January National Association of Pension Funds (2010) “A Budget for Pensions”, An NAPF submission to HM Treasury on the 2010 Budget, February NÖcker, R (2001) ‘Pensions governance: The control of Occupational Pension Schemes in the UK and Germany’, Journal of Pensions Management, Vol (3), pp 227-248 Neuendorf, K (2002) The Content Analysis Guidebook, Sage Publications Ltd.: London O’Brien, P and Bhushan, R (1990) “Analyst Following and Institutional Ownership”, Journal of Accounting Research, Vol 28, supplement, pp 55-76 OECD (1998) The Role of Disclosure in Strengthening Corporate Governance and Accountability, Background and issues paper for OECD symposium Richard Frederick, Administrator, OECD, Paris OECD (1999) OECD Principles of Corporate Governance Business Sector Advisory Group on Corporate Governance Ira Millstein Chairman OECD, Paris OECD (2004) Principles of Corporate Governance Paris: OECD OECD (2002) OECD Guideline for Pension Fund Governance Available at: http://www.oecd.org/document/54/0,3343,en_2649_37419_2767350_1_1_1_1,00.htm l [Accessed 1/7/08] 397 Otley, D.T (1984), ‘Management Accounting and Organisation Theory: A Review of their Interrelationship’ in Management Accounting, Organisational Behaviour and Capital Budgeting, Macmillan/ESRC, London Patton, M (1990) Qualitative Evaluation and Research Methods, Sage Publications Ltd.: London Parkinson, J (1995), ‘The Role of ‘Exit’ and ‘Voice’ in Corporate Governance’, in S Sheikh and W Rees (Eds) Corporate Governance and Corporate Control, pp 75110, Cavendish Publishing Ltd: London PAAinE, (2008) The Financial Reporting of Pensions: A PAAinE Discussion Paper, January, Brussels Pension Law Review Committee (1993) Pension Law Reform: The Report of the Pension Law Review Committee, London: HMSO Pension Protection Fund (2009) PFF 7800 Index 30 June 2009, available at: http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/ppf_7800_jul y_09.pdf (accessed 18/8/2010) Pension Protection Fund (2010) PFF 7800 Index 30 June 2010, available at: http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/PPF_7800_J uly_10.pdf (accessed 18/8/2010) Picconi, M (2006) ‘The Perils of Pensions: Does Pension Accounting Lead Investors and Analysts Astray?’, Accounting Review, Vol 81(4), pp 925-955 Pickering, A (2003), ‘The Life Industry’, The Treasurer, October Pike R., Meerjanssen J and Chadwick L (1993) ‘The appraisal of Ordinary shares by investment Analysts in the UK and Germany’, Accounting and Business Research, Vol 23 (92), pp 489-499 PRAG, (2007) Statement of Recommended Practice (SORP): Financial Reports of Pension Schemes PricewaterhouseCoopers (2008) Are you managing your pensions business? 3rd Survey of UK Pension Scheme Governance 2008, London Puxty, A.G., (1986), ‘Social Accounting as Immanent Legitimation: A Critique of a Technicist Ideology’, Advances in Public Accounting, Vol 1, pp.95-111 Puxty, A.G., (1991) ‘Social Accountability and Universal Pragmatics’, Advances in Public Interest Accounting, Vol 4, pp.35-45 Robb, S., Single, L and Zarzeski, M (2001) “Nonfinancial Disclosures Across Anglo-American Countries”, Journal of International Accounting, Vol 10., No 1., pp-71-83 398 Roberts, J (1991) “The possibilities of accountability”, Accounting, Organizations and Society, Vol 16, No 4, pp 355-368 Roberts, J (1996), “From the Discipline to Dialogue: Individualising and Socializing Forms of Accountability”, in Accountability: Power, Ethos and the Technologies of Managing, Munro, R and Mauritsen, J eds., International Thomson Business Press Roberts, J and Scapens, R (1985) “Accounting systems and systems of accountability”, Accounting Organisations and Society, Vol 10(4), pp 443-56 Roseberry, R (1995) “A Texture Index: Measuring Texture in Disclosure”, International Journal of Applied Linguistics, Vol 5., No 2., pp 205-223 Rutherford, B (2002) Half the Story:Progress and Prospects for the Opersting and Financial Review, ACCA Research Report No 80, London: Certified Accountabnts Educational Trust Scapens, R.W (1984), ‘Management Accounting: A Survey Paper’ in Management Accounting, Organisational Behaviour and Capital Budgeting, Macmillan/ ESRC, London Schleicher, T (1998) Developments in Corporate Financial Disclosure over the period 1975-1996: Evidence from UK Annual Reports, Occasional Research Paper No 21, London: Association of Chartered Certified Accountants Scott, T (1991) “Pensions Disclosure under SFAS No.87: Theory and Evidence”, Contemporary Accounting Research, Vol 8(1), pp 62-81 Shenglan, C and Minghai, W (2006) “Investor Protection and the Quality of Financial Accounting Information”, Sheridan, L., Jones, E and Marston, C (2006) “Corporate Governance Codes and the Supply of Corporate Information in the UK”, Corporate Governance, Vol 15, No 5, pp 497-503 Shleifer, A and Vishny, R (1997) ‘A Survey of Corporate Governance’, Journal of Finance, Vol.52, No.2, pp 737-783 Short, H and Keasey, K (1997) ‘Institutional investors and corporate governance in the United Kingdom’ In K Keasey, S Thompson, and M Wright, ed Corporate Governance: Economic, Management and Financial Issues New York: Oxford University Press Short, H., Keasey, K., Hull, A and Wright, M (1998) “Corporate Governance, Accountability and Enterprise”, Corporate Governance, Vol 6, No 3, pp.151-165 Sinclair, A (1995), “The Chameleon of Accountability: Forms and Discources”, Accounting, Organisations & Society, Vol.20, pp.391-405 399 Smith, M and Taffler R (1992) “Readability and Understandability: Different Measures of the Textual Complexity of Accounting Narrative”, Accounting, Auditing and Accountability Journal, Vol 5(4), pp ?? Smith Report, The (January 2003) Audit Committee: A Report and Proposed Guidance, Financial Reporting Council, London Solomon, J (2007) Corporate Governance and Accountability, John Wiley and Sons Ltd: Chichester Solomon, J (2007) Corporate Governance and Accountability Chichester: John Wiley & Sons Ltd Stewart, J.D (1984), “The Role of Information in Public Accountability”, in Hopwood, A and Tomkins, C (Eds), Issues in Public Sector Accounting, Philip Allen, Oxford, pp.15-34 Stiles, P and Taylor, B (1993) “Maxwell - the Failure of Corporate Governance”, Corporate Governance an International Review”, Vol 1, No 1, pp 34-45 Sundaram, R and Yermack, D (2007) ‘Pay me Later: inside debt and its role in managerial compensation’, Journal of Finance, Vol 62 (4), pp.1551-1588 Sydserff, R and Weetman, P (1999) “A Texture Index for Evaluating Accounting Narratives: An Alternative to Readability Formulas”, Accounting, Auditing & Accountability Journal, Vol 12., No 4., pp 459-488 Terazono, E and Jopson, B (2006) “Northcliffe's pension stumbling block”, Financial Times, 11/2/06 The Pensions Regulator, 2005, Code of Practice 1: Reporting Breaches of the Law The Pensions Regulator, 2006(a), Code of Practice 7: Trustees Knowledge and Understanding The Pensions Regulator, 2006(b), Code of Practice 8: MNT/MND – putting arrangements in place The Pensions Regulator, 2006(c), Code of Practice 9: Internal Controls The Pensions Regulator, 2007(a) Regulatory Guidance: Trustee Guidance The Pensions Regulator, 2007(b) The Governance of work-based pension schemes: Discussion paper The Pensions Regulator, 2007(c) How the regulator will promote better governance of work-based pension schemes: The Regulator’s response The Pensions Regulator, 2008 (a), Our Corporate Strategy 2008-2012: Next steps in risk-based regulation 400 The Pensions Regulator, 2008(b), Regulatory Guidance: Conflicts of Interest The Pensions Regulator, 2008(c), Regulatory Guidance: Relations with advisers The Pensions Regulator, 2008(d), Regulatory Guidance: Effective Member Communications The Pensions Regulator, 2009(a), Regulatory Guidance: Corporate Transactions The Pensions Regulator, 2009 (b), The Investment Governance Group, available at: http://www.thepensionsregulator.gov.uk/pdf/IGGtools.pdf [accessed 15/7/10] The Pensions Regulator, 2009 (b), Code of Practice: Trustee Knowledge and Understanding Thomas, R and Turner, R (2001) Mirror Group Newspapers plc Investigations under Sections 432(2) and 442 of the Companies Act 1985, Department of Trade and Industry: London Tinker, A., Leham, C and Neimark, M (1991), “Falling down the hole in the middle of the road: Political Quietism in Corporate Social Reporting”, Accounting, Auditing and Accountability Journal, Vol 4, No 2, pp 28-54 Tricker, R (1983), “Corporate Responsibility, Institutional Governance and the Roles of Accounting Standards”, in Bromwich, M and Hopwood, A G (eds) Accounting Standard Setting-An International Perspective, London: Pitman Tricker, R (1984), Corporate Governance: Practices, Procedures and Powers in British Companies and Their Boards of Directors, London: Gower Tricker, R.I (1994) International Corporate Governance, Simon and Schuster, Singapore Tricker, R.I (1996) Pocket Director, The Economist Books, London Turnbull Report, The (September 1999) Internal Control: Guidance for Directors on the Combined Code, Institute of Chartered Accountants in England and Wales, London Turnbull, S (1997) ‘Corporate Governance: It’s Scope, Concerns and Theories’, Corporate Governance, Vol.5, No 4, pp 180-205 Turner, A (2004), ‘Answering Age Old Questions’, The Treasurer, June URL: http://www.accountancy age.com/News/1130206 [accessed 21/10/03] UK Corporate Governance Code Unerman, J (2000) “Reflections on Quantification in Corporate Social Reporting Content Analysis”, Accounting, Auditing & Accountability Journal, Vol 13, No 5, pp 667-680 401 Useem, M and Mitchell, O (2000) ‘Holders of the purse strings: governance and performance of public retirement systems’, Social Science Quarterly, Vol 81(2), pp 489-506 Wanyama, S (2005) Corporate governance and accountability in Uganda – a stakeholder perspective, Unpublished PhD Thesis, University of Dundee Wanyama, S., Burton, B and Helliar, C (2009) ‘Frameworks Underpinning Corporate Governance: Evidence on Ugandan Perceptions’, Corporate Governance: An International Review, Vol 17(2), pp 159-175 Willmott, H (1996), “Thinking Accountability: Accounting for the Disciplined Production of Self” in Accountability: Power, Ethos and the Technologies of Managing, Munro, R and Mauritsen, J eds., International Thomson Business Press Wilson, A., Davies, M., Curtis, M and Wilkinson-Riddle, G (2001), UK and International GAAP, 7th edition, Butterworths Tolley, London Wolf, M (2005) “Grasp This Historic Plan for Pensions”, Financial Times, 1/12/05, p 402