SSE/EFI Working Paper Series in Business Administration
THE LONG RANGE DYNAMICS OF FINANCIAL CONTROL. The Royal Dramatic Theatre and its costs over a century
Abstract: In September 2006, the book Lysande ögonblick och
finansiella kriser (Splendid Moments and Financial Crises) was published.
In large part, it is a narrative about the Royal Dramatic Theatre in
Stockholm during the 20th century: about actors, productions, attendance,
relations to the audience, critics´ views and physical resources, dealing
especially with financial processes and their importance. It is a
systematic description of a long chain of events and situations, manager by
manager. In the paper below, there is a summary of the theatre´s story from
an economic point of view. Of course, this story is unique in several
respects but many classical control issues and general tendencies are also
present. Thus, the description of this specific case is the vehicle for
discussing financial control mechanisms of overall importance. In
particular, the issue of time as a vital variable is addressed. The
analysis pinpoints specific events, but also the contexts over time to
which they belong. It emphasizes that the resource issue for an
organisation involves a dynamic problem; that is the underlying character
even if it appears in the form of financial crises on certain occasions. It
also demonstrates a long-range interaction between outer and inner
processes and, moreover, conflicts of interests.
Keywords: financial control; management control; long-term control; long-range cost structure; corporate governance; vertical control; horizontal control; short-term effects; strategic re-orientation; financial crisis; theatre; the Royal Dramatic Theatre; cultural economics; (follow links to similar papers)
31 pages, January 11, 2007
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joakim Ekebom