Entering the Public Eye: The Use of Management Control Systems Following a Public Listing

Sammanfattning

This thesis examines the underexplored intersection between Management Control Systems (MCS) and Initial Public Offerings (IPOs), focusing on how the transition from private to public ownership influences the design and use of MCS. Prior research has highlighted increased formalization and greater emphasis on financial metrics following public listings; however, less attention has been given to how MCS evolve as an integrated and dynamic system following an IPO. To address this gap, the thesis conducts a qualitative single-case study of a recently listed Nordic company in the industrial automotive industry, referred to as VehCo. The empirical material is structured and analyzed through Simons' (1995) Levers of Control framework and Mundy's (2010) extension on the enabling and controlling uses of MCS. Our findings show that: (1) public listings accelerate the formalization and restructuring of control systems beyond formal compliance requirements, (2) pre-existing controls shape how newly introduced controls are enacted and can prevent heightened accountability pressures from producing a predominantly monitoring-oriented system, and (3) different IPO-imposed controls vary considerably in how much room they leave for managerial discretion, shaping the degree to which organizations can balance predictability with adaptability.