Abstract
This study aims to develop and evaluate a Decision-Making Success contingency model to assess its dependency on Internal Control System Quality and Financial Information Quality. The authors developed a study based on a sample of 381 Portuguese managers. The structural equations model was used in the analysis of causal relationships between different constructs. Results show that Internal Control System Quality contributes directly to Decision-Making Success. Moreover, Internal Control System Quality and Financial Information Quality are determining factors for Decision-Making Success since Internal Control System Quality has a significant direct impact on Financial Information Quality (with a 64% coefficient of determination) and indirect on Decision-Making Success. The model justifies 67% of the variance of the dependent variable. This research covers a literature gap, since it identifies innovatively, two independent variables that are determinant for Decision-Making Success from the Portuguese companies' manager perspective. This study is relevant to literature development, as it develops and evaluates an original model, and to managers, in the sense that it identifies factors that contribute to Portuguese companies' success.
Highlights
With the progress of economic activity, accounting has been an essential tool to support management in decisionmaking [1].accounting information is an important resource in the decision-making process
Considering the above, this study aims to analyze whether the Internal Control System Quality influences the Financial Information Quality and whether these have an impact on Success in Decision-Making.This investigation is based on contingency theory, which recognizes that each company has its characteristics and that the manager’s decisions are influenced by different company characteristics [17]
Results indicate that Internal Control System Quality has a positive and significant effect on Decision-Making Success (β=.20; p-value
Summary
With the progress of economic activity, accounting has been an essential tool to support management in decisionmaking [1]. Accounting information is an important resource in the decision-making process. Akhtar and Liu [2] 390) indicate that the accounting information “should be used by the external and internal evaluators of the company, to guide better decisions”. The literature suggests that accounting is a vital tool in the management of an entity and decisive for decision-making [3]. Decision-makers need useful and quality accounting information to support their decisions [4, 5]. A highquality decision needs high-quality information [6]
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