Abstract
The rise of the concept of sustainability reveals a pivotal shift in market thinking, thus pushing companies to reevaluate the method in conducting their decision-making processes. The main objective is to investigate the role of accounting information in decision-making from the point of view of Certified Accountants. Specifically, it aims to analyse the relationship between the companies’ size, the usefulness of Financial Information (FI) and Management Control Information (MCI), and the company's economic performance. Supporting evidence is provided by analysis of an online questionnaire survey of professionally qualified accountants working in Portugal. We used structural equation modelling in the analysis of causal relationships between different constructs. The results show the size of the companies and their performances are directly related, so it is the larger companies that have the best economic performance. However, to improve the company’s performance, it has been proven that the use of FI in decision-making is not sufficient, so the use of MCI is decisive for a good economic performance. This study highlights the importance of producing useful FI and MCI to assist decision-making and contribute to economic sustainability.
Highlights
The rise of the concept of sustainability reveals a pivotal shift in market thinking, pushing companies to reevaluate the method in conducting their decision-making processes In current competitive environment, companies are asked to innovate at any moment, warranty tomorrows sustainability and make money
In order to prepare the data and assess whether they meet the requirements to be submitted to a Structural Equation Model (SEM) analysis, we proceeded to a preliminary analysis of the data
The decision maker is encouraged to environment research, gather information, and form and evaluate educated assumptions in order to make accurate judgements and decisions (Janka et al, 2020; Sajady et al, 2012)
Summary
The rise of the concept of sustainability reveals a pivotal shift in market thinking, pushing companies to reevaluate the method in conducting their decision-making processes In current competitive environment, companies are asked to innovate at any moment, warranty tomorrows sustainability and make money now. The rise of the concept of sustainability reveals a pivotal shift in market thinking, pushing companies to reevaluate the method in conducting their decision-making processes In current competitive environment, companies are asked to innovate at any moment, warranty tomorrows sustainability and make money This context challenges the current mindset of decision-makers and threatens the role accounting information plays in decision-making. Literature suggests that the growing number of innovation activities in companies has stressed the need for research on management accounting and control (Janka et al, 2020). Accounting information system is useful for decision-making process in an innovation context (Janka et al, 2020; Sajady et al, 2012)
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