Comparative Studies of the Use of Management Accounting Information

Ewelina Zarzycka,Justyna Dobroszek,Cristina Circa,Alina Almasan

doi:10.5195/emaj.2017.143

Ewelina Zarzycka, Justyna Dobroszek + Show 2 more

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https://doi.org/10.5195/emaj.2017.143

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Abstract

The paper uses the phenomenon of isomorphism to present the similarities and differences in the use of management accounting information by managers in Poland and Romania. In order to analyze the set of data obtained from the conducted survey, cluster analysis and descriptive statistics have been applied. The studied managers use mainly management accounting information for planning and control tasks (budgeting) and less for formulating strategy and decision making. In their work, they rather apply financial data than nonfinancial indicators. The findings confirm that management accounting in both countries is strongly influenced by the mechanisms of coercive, normative and mimetic isomorphism connected with their specific economic and political development.

Highlights

The importance of comparative management accounting studies is undisputable, as they are especially relevant for corporate practices
Our study reveals many similarities in the use of management accounting information by managers from Poland and Romania
The results of the cluster analysis showed that management accounting information is employed in a similar manner in the two countries included in the study

Summary

Introduction

The importance of comparative management accounting studies is undisputable, as they are especially relevant for corporate practices. Multinational corporations consider that country-specific conditions influence the effectiveness of management accounting practices in subsidiaries operating in different national settings In this context, comparative studies help companies to identify and understand the inefficiencies of management accounting systems in country specific cases (see Endenich et al, 2011). Our study employs the institutional theory, mainly the concept of isomorphism, in order to explain the similar use of management accounting by managers from the two countries. The authors identified that coercive isomorphism resulting in the homogeneity of management accounting practices is reflected in international legislation (e.g.: EU directives), international trade agreements (e.g.: WTO, NAFTA), in the harmonization of financial accounting and reporting rules as well as in the corporate influence of multinationals on local subsidiaries. Granlund (2001), explaining the consistency of management accounting practices drew attention to the effect of mimetic (copying management accounting methods and consultant opinion) and normative isomorphism (conservative organizational culture, accountants’ conservatism)

Aim of the paper and research methodology

Research sample

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