Utilization of management accounting tools at companies in the State of Espírito Santo

Aridelmo Teixeira,Angélica Santos,Valcemiro Nossa,Rosimeire Gonzaga

doi:10.15728/bbr.2011.8.3.6

Abstract

The present study tried, through empirical-analytical analysis, to find companies in the State of Espírito Santo utilizing modern management accounting tools, as well as study the possible link between the utilization of modern and traditional tools and the financial performance of the companies in the sample. The sample consisted of the companies listed in the FUCAPE Business School database. This database contains the records of the Top 200 companies in the State of Espírito Santo included in the ranking published by Findes magazine in its 2007 and 2008 edition, with information of the period 2008-2009. Data collection was performed by personal interviews in loco. The multinomial logistic regression technique was utilized for data analysis. Evidence was found that companies in the State of Espírito Santo utilize traditional as well as modern management accounting tools. The results also suggest a non-random even though weak link between economic performance and the traditional management accounting tools.

Highlights

The economic and financial success of institutions may depend in part on information management
The respondents were supposed to indicate the degree of utilization of the tool, having the following answer choices available: widely used (AU), partially used (PU), in implementation (EI), not used (NU) and don’t know (NR)
The objective of this study was to determine whether companies in the State of Espírito Santo considered using modern management accounting tools, as well as the association between the use of management accounting tools with the financial performance of companies listed in the ranking of the Top 200 companies in the State of Espírito Santo between 2008 and 2009, included in the FUCAPE Business School’s database

Summary

Introduction

The economic and financial success of institutions may depend in part on information management. Many companies have undergone changes in their organizational structures, information technology and in the competitive environment in which they operate, requiring new management techniques For some scholars, this has led to a need for changes in the management accounting (BURNS; VAIVIO, 2001). Some authors analyzed the set of elements that constitute the management of the accounting function and management accounting, considering them with respect to adherence, evolution and use in several countries (AMAT; CARMONA; ROBERTS, 1994; BESCOS; MENDOZA, 1995; WIJEWARDENA; DE ZOYSA, 1999). In this context, some questions persist about the suitability of the authors of management accounting systems to the current reality. For other authors (SCAPENS, 1988, SULAIMAN et al, 2004), there is a difference between the theory and the management practices used by companies and the authors have sought the restructuring of these management practices in order to better reflect the practical corporate needs

Methods

Results

Conclusion