Management Accounting Practices Research Articles

Motivations for Adopting Proactive Environmental Management Accounting Practices: Evidence from South African Firms

By examining environmental management accounting practices (EMAP) in South African companies, the study assists the company management to better understand their EMAP more broadly and establish effective EMAP to improve environmental management. This paper explores EMAP adopted by South African companies in Gauteng province and understands the motivation for applying the EMAP. Companies from different industrial sectors were used as the study sample. To accomplish the major aim of the study, 202 questionnaires were received as valid from the environmental managers, accountants and production managers. The study establishes that the companies are mostly using environmental management system, environmental reporting, waste management and water conservation activities as the key EMAP. This indicates that South African companies opt for EMAP with little cost involved and EMAP that does not require advanced systems in place. Also, financial gains were identified as the major motivation of EMAP adoption. This is followed by stakeholder pressure, marketing pressure and regulatory pressure. This paper will amplify literature on the EMAP adopted within industrial sectors and the motivation of adopting EMAP from an emerging market standpoint.

Human Capital dan Kinerja UKM: Peranan Praktik Akuntansi Manajemen sebagai Pemediasi

This study aims to examine the role of Management Accounting Practice (PAM) as a mediator in the relationship between human capital and SME performance. The study population is SMEs in the province of East Java, the sample technique using convenience sampling method. The data collection method uses e-survey via Whatapss and Line social media because it is the most popular in Indonesia. The data that was collected was 108 SMEs. Hypothesis testing uses partial least squares – structural equation modeling (PLS-SEM). The test results show that human capital has a significant and positive effect on SME performance, PAM has a significant and positive effect on SME performance, and PAM has a role as a partial mediation between PAM and SME performance. The research results have theoretical implications, namely human capital is an antecedent variable that influences the use of PAM and PAM has a role as a partial mediation. Meanwhile, the practical implication is that human capital in the context of SME owners has an important role for the survival of SMEs during a pandemic. And the use of PAM will help SMEs to be able to maintain their viability.
 Keywords: Covid-19 pandemic; Human Capital; Management Accounting Practices; SMEs’ Performance

Will the formation of the International Sustainability Standards Board result in the death of integrated reporting?

PurposeThis paper critically analyses the future of Integrated Reporting (IR) given recent and likely future developments in corporate reporting and sustainability disclosure standard setting.Design/methodology/approachThis paper uses Alvesson and Deetz’s (2000) critical framework to consider the research question through insight (a review of the history of IR and the formation of the International Sustainability Standards Board [ISSB]), critique (considering power structures, momentum and global trends) and transformative redefinition (proposing reasons for how and why IR might survive or perish).FindingsIR’s future as a reporting initiative is uncertain. Pressure from investors may lead to detailed sustainability disclosures being favoured over IR’s more holistic story-telling approach. This may result in IR joining the long list of abandoned corporate reporting initiatives. Yet IR is not incompatible with recent developments in non-financial reporting and may continue to thrive. IR aligns well with developments in management accounting practices and other voluntary forms of sustainability reporting. IR’s associated “Integrated Thinking” seeks to develop organisational decision-making that leads to sustainable value creation. Whether it lasts as an external reporting format or not, IR is likely to leave a legacy related to changes in reporting characteristics.Originality/valueThis study explores the future of IR at a critical juncture in corporate reporting history, considering the entry of the ISSB, which is fundamentally changing the landscape of sustainability disclosure standard setting.

MODERN INNOVATIVE PRACTICE OF MANAGEMENT ACCOUNTING

Purpose of the article: innovations in the field of management accounting. Modern management accounting reforms the traditional practice of management accounting. Management accountants are required to take part in establishing financial controls and assigning financial values to non-financial managers. Modern management accounting with other strategies will allow management to make informed decisions that will contribute to the success of the organization.

Cost and Management Accounting Practices, ICT Usage and Performance of Secondary Schools in Uganda: A Case of South Western Uganda

This article accounts for the findings from a study conducted in secondary schools located in south western Uganda. The study was about Cost and Management Accounting Practices, ICT Usage and Financial Performance of Secondary Schools. This study adopted a cross-sectional and correlational design. Questionnaires were administered to 435 secondary schools. The Unit of analysis was secondary schools and the unit of inquiry was head teachers/their representatives.The findings indicate that the adjusted R² is 27.4% and the F-ratio (F = 9.122) is significant. This means that the total predictive power of cost and management accounting and ICT adoption account for 27.4% in financial performance of secondary schools. (R² = 0.274, p <0.01). The results supported the earlier set three (3) hypotheses in the literature review. The results emphasize that cost and management accounting practices highly influence financial performance of secondary schools.The study emphasized that Education is acute to the generation of strong, and enlightened countries, to which Uganda aspires to be. In recent years, Uganda Primary Education (UPE) has procreated large proliferations in the number of students yearning secondary education in Uganda. Private secondary schools have been established to encounter the superfluous demand. Without steadfast cost and management systems to guarantee stable financial performance, the secondary schools must, as any other enterprise throughout the world, become financially autonomous, their survival is in doubt. Keywords: Cost and Management accounting practices, ICT adoption, financial performance, secondary schools. DOI: 10.7176/RJFA/13-24-01 Publication date: December 31 st 2022

Measuring management accounting practices using textual analysis

Management accounting is an important component of managerial decision-making to help guide the overall business strategy in organisations. Appropriate measures of management accounting practices (MAPs) allow academics and practitioners to assess the organisations’ MAP adoption effectively. In this study, based on qualitative information disclosed in annual reports from 2003 to 2019, we construct and validate novel and comprehensive measures of firm-level MAPs using the word embedding model Word2Vec. We illustrate the predictive validity of our measures by examining the determinants and value creation function of fitted MAPs. Our novel measures of MAPs not only provide a solid foundation for large scale sample empirical analyses of management accounting research but also pave a new way to investigate MAPs as a package.

Management Accounting Practices Adopted by Small Hoteliers in Sri Lanka

Management Accounting Practices Adopted by Small Hoteliers in Sri Lanka

Exploring the Dynamics of Managerial Accounting Practices: A Literature Review

This research conducts a qualitative analysis to explore the dynamics of managerial accounting practices, aiming to uncover determinants of adoption, impacts on organizational performance, and contextual factors shaping such practices. The study employs a systematic literature review methodology, synthesizing existing research from academic databases and journals. Through thematic analysis, key themes including organizational determinants, impacts on performance, and contextual influences are identified and analyzed. The findings reveal that organizational factors such as size, structure, culture, and leadership style significantly influence the adoption of advanced managerial accounting techniques. Additionally, external factors such as regulatory requirements, industry dynamics, and technological advancements play a crucial role in shaping adoption patterns. Effective implementation of managerial accounting practices is associated with improved financial performance, operational efficiency, and strategic decision-making capabilities. Furthermore, contextual factors including industry dynamics, environmental uncertainty, and technological advancements influence managerial accounting practices, driving organizations to adopt innovative and agile approaches. The study contributes to advancing scholarly understanding of managerial accounting practices and highlights avenues for future research.

Management Accounting Practices in the Hospitality Industry: The Portuguese Background

Background: Despite the increase in tourism revenues, management in the hospitality industry faces constant challenges for profit maximization. In this way, the aim of this study is to analyze management accounting (MA) research applied to the Portuguese hospitality industry, identifying all the practices mentioned by authors studying the same theme in the rest of the world. Methods: fifty-two studies were obtained and used between 2010 and 2021 for data assessment through bibliometric review, which involved both quantitative and qualitative methods of analysis. To achieve the objectives, studies were selected according to the MA practices identified by several authors for the global hospitality industry. Results: the results highlight the importance of increasing research on MA practices in the hospitality industry to empower management and smooth out the differences between their use. Currently, the emphasis is on hotel ratios and indicators, budgeting, and benchmarking. Conclusions: The adoption of MA practices is decisive for the success of hotel companies. This study evidenced the increasing use of some hotel MA practices over the years and made it possible to assess the development of these practices in Portugal, since to date no other author has produced a bibliometric review on this topic.

The moderating effect of demographics and institutional characteristics between religiosity and cost management accounting practices of rural SMEs

The main purpose of the study was to evaluate the direct and indirect effects that owner/manager demographic attributes and firm characteristics have on the relationship between religiosity and the two dependent variables, cost accounting and management accounting in Small to Medium Enterprises (SMEs) of subsistence economies. Self-administered survey was used to draw responses from 100 SMEs in Manicaland Province, Zimbabwe. To facilitate the analysis of the data, given the moderation effect that sought to be tested, both IBM SPSS Statistics v26 and the Hayes Process Macro for SPSS were used. The moderation effect was validated through general linear factorial MANOVA. The study provided evidence on the significance of education in moderating the relationship between religiosity and cost and management practices (CMAPS). However, two demographic variables (age and gender) and three firm characteristics (revenue, number of employees and years in business) were not statistically significant and therefore had no interaction effects between these independent and dependent variables. It was recommended to encourage on lifelong learning and education to entrepreneurs as a way of enhancing the use of cost and management accounting practices in subsistence markets so as to boost their financial performance.

The Choice of Environmental Management Accounting Practices Adopted by Managers: Evidence from the Hotel Sector in KwaZulu Natal, South Africa

To understand the ways that 5-star hotels in Kwazulu Natal use to select environmental management accounting (EMA) practices to implement, the study assists hotel managers in better understanding and effectively formulating other mechanisms for improving EMA. The paper ascertains the manner applied by managers in 5-star hotels in KwaZulu Natal province when selecting EMA practices to adopt for their business activities. To attain the key aim objective of the research, 21 interviews and observations were conducted on three 5-star hotels among hotel managers, accountants, and administration managers. The study identifies that meeting international customers’ expectations plays a dominant role in pushing hotels to select EMA practices that can be easily identified by the customers such as water and energy efficiency. 78% of the interviewees endorse that international clients choose hotels that promote environmental initiatives hence the choice of current EMA practices. In addition, this is critical because it also affects the financial performance of the hotels. The paper provides further empirical evidence in extant literature that financial performance remains the key factor influencing a decision on EMA practices to be applied by hotels in emerging markets.

Carbon management accounting (CMA) practices in Australia’s high carbon-emission industries

PurposeThis study aims to evaluate the practices of carbon management accounting (CMA) made by companies committed to sustainability in Australia’s four highest carbon-emitting industries, including electricity, transport, stationary energy and agriculture. The evaluation covers three CMA phases (i.e. data collection, interpretation and reporting).Design/methodology/approachThis is a cross-sectional study using descriptive research. Data was collected using a questionnaire primarily derived from Burritt et al.’s (2002, 2011) CMA framework and suggestions from other references. The questionnaire includes a set of closed- and open-ended questions. Data was collected from 39 senior managers in the selected industries with direct knowledge and experience in their companies’ CMA practices.FindingsThe respondents disclose numerous different motivations for their companies to practise CMA and various ways of practising their CMA. This reflects diverse industry practices due to the absence of a generally accepted standard and different stages of organisational learning. The findings also show that the respondents perceived CMA practices as essential to enhancing their companies’ sustainability performance and overall reputation. However, the majority of the respondents showed little appetite for carbon emission disclosure.Practical implicationsThe findings thoroughly describe the current CMA practices by companies committed to sustainability in Australia’s high carbon-emitting industries. Overall, the results show that while the respondents perceived CMA practices as essential for their companies’ sustainability performance and energy-saving, the CMA applications were inconsistent, along with some concerning results, such as a lack of assurance and accountability in the data validation and audit. These indicate the importance of policymakers to consider establishing CMA guidelines or standards to improve its practice. For any company, these findings can be used as learning materials to start or enhance CMA practice at their companies. A broader professional CMA community can strengthen the collective efforts to make CMA more robust.Social implicationsThe findings portray the perceptions of practitioners from Australia’s four highest carbon-emitting industries, indicating motivations to use CMA to understand their companies’ carbon footprint and reduce their companies’ environmental impacts.Originality/valueThe findings contribute to the limited literature in this area and offer several valuable insights regarding the current practice of CMA in Australia, focussing on high carbon-emission industries. It also encourages more research in this area using data from other industries or countries to develop comparative results and strengthen the literature. Future research using actual carbon emission information or a longitudinal approach could also evaluate the changes and progresses in CMA practices.

Agricultural land management accounting: The current status and development trends

Subject. This article discusses the development of management accounting of agricultural land, which contributes to the formation of information not only on the quantity and value, but also on qualitative indicators of its rational and effective use. Objectives. The article aims to conduct a historical analysis of the development of management accounting of agricultural land assets, identify problems and propose solutions. Methods. For the study, I used a comparative analysis and systematization. Results. The article formulates the goals and objectives of management accounting of agricultural land assets, identifies the problems of accounting for the inclusion of the cost of applied fertilizers, taking into account their aftereffect, in the cost of crop production, and offers some recommendations on the methodology for accounting for crop production costs and output. Conclusions and Relevance. The introduction of a system of management accounting of land assets will contribute not only to their effective use, but also to the optimization of agricultural production as a whole, and will also be the basis for the cadastral valuation of land assets. Management accounting will also contribute to strengthening State control over the targeted use of land. These proposals can be implemented subject to the development of special automated management accounting programs in the context of the digitalization of the economy. The results of the study can be applied in the theory and practice of management accounting.

Strategic Management Accounting Practices and Organizational Performance of Manufacturing Firms in Kurunegala District

The International Journal of Accountancy (IJA) is published by the Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka. It is an interdisciplinary accountancy research journal, publishing enquiries of accounting, management accounting, auditing, taxation, and governance issues and their impacts on policy, practice and society. IJA encourages better understandings of accountancy related matters through research, encouraging innovative and interdisciplinary approaches.

The Effect of Financial Accounting Practices and Management Accounting Practices on MSME’s Economic sustainability

This study aims to find empirical evidence regarding the level of adoption of financial accounting practices, assessment of accounting practices to MSMEs, and to see the correlation between financial accounting practices and management accounting practices of MSMEs in Palembang. Total of 1,103 MSMEs registered at Cooperatives and Micro, Small and Medium Enterprises Office is the research population. The sampling technique used the Taro Yamane formula to determine the size of the sample. After obtaining the number of samples, the random sampling method was used to select the MSMEs that were used as research samples. The precision of the sample used in this study was 0.2 and the research sample obtained was 50 samples. The data analysis method used was descriptive statistics and simple and multiple linear regression with a significance level of 0.05. The result is that there is a significant positive effect between financial accounting practices and management accounting on economic sustainability with a probability of 0.006 < 0.005. The most widely adopted financial accounting practice is the recording of sales and purchase transactions, while the most widely used management accounting practice is in operational budget planning.

Developing an Environmental Management Accounting Framework for The Waste Management Sustainability of Municipalities in South Africa

The aim of the study is to identify environmental management accounting (EMA) practices currently used by the municipalities in South Africa in enhancing municipal solid waste management. To accomplish the aim of the study, 32 in-depth interviews were conducted with accountants, environmental managers and municipals managers on 10 municipalities in South Africa. Thematic analysis’s was used to analyse the data and unearthed that environmental management system, waste management system, environmental reporting, environmental training and research and development are currently used as EMA practices to boost municipal solid waste management. To align these practices with the accounting system in municipalities, an EMA model was proposed that can make available monetary and non-monetary waste-related environmental information.

Environmental Management Accounting (EMA) practices and plastic pollution control in selected food and beverage firms

This study investigated the relationship between EMA and plastic pollution control. The study concentrated on Food and Beverage manufacturing companies since they use plastic goods to package their products. Plastic products are discarded once they have served their purpose, which pollutes the environment. A quantitative approach was adopted, with 124 self-completed questionnaires being administered to financial managers, management accountants, factory accountants and chief accountants of 38 selected food and beverage manufacturing firms in Durban. The findings revealed a significant relationship between environmental information and environmentally-related activities. Environmental information also had a positive relationship with corporate environmental strategy. Moreover, a strong positive relationship was discovered between environmental information and plastic pollution control. An analysis of the link between environmentally-related activities and plastic pollution control revealed an insignificant relationship. An insignificant relationship was also discovered between corporate environmental strategy and plastic pollution control. This study suggests that companies within the Food and Beverage industry must put in place sustainable environmental strategies, whereby eco-friendly disposal initiatives must be implemented for plastic waste management.

Influence of Account Receivable Management Practices on the Performance of Small and Medium Scale Enterprises

The business enterprise sector has been known as a key supporter in the achievement of the economic evolution in the world at large nowadays. The small and medium scale enterprise in particular have attracted the attention of many governments in our world of today as a key source of employment and economic steadiness.Small and medium enterprises (SMEs) play an important role in the economic growth in Ghana. SMEs contribute to economic development in various ways: by creating employment for rural and urban growing labour force, providing desirable sustainability and innovation in the economy as a whole. The success or failure of new business is often dependent on overcoming a series of potential barriers, such as securing financial backing, adequate and appropriate guidance and training (Fielden et al, 2000). In line of these challenges, this paper sought to evaluate the influence of receivable management on performance of small and medium scale enterprises in Kumasi Metropolis in Ghana.This study adopted a descriptive design with cross sectional survey. According to Churchill (2011), cross sectional survey affords the researcher to capture the relevant information from almost all the key stakeholders within the SMEs across the Metropolis to be able to do a critical assessment. The study sought to collect data from the SMEs at one point in time and determine the impact of management accounting practices on financial performance of SMEs in in the Kumasi Metropolis in Ghana. The study established Receivable management practices were effectively followed by the selected SMEs, and there was a statistical significant effect of receivable management practices on firm performance.

Big data and sustainability reports: The current approach to non-accounting data management

Smart technologies influence the accounting and reporting environment and pose several challenges to academics and practitioners. In this scenario, Big Data (BD) and BD analytics could play a crucial role in improving management control and accounting practices, as well as the accuracy of financial, non-financial and sus-tainability reporting. This paper is the first to draft the impact of BD and BD ana-lytics in the management of non-financial and sustainable information. It in-volved a review of the literature connecting BD to sustainability accounting and reporting, using document-based data covering the 2010-2022 period. The paper's main contribution, by applying a qualitative approach, is the mapping of current research on this emerging topic. Elaborating on previous scholarly contributions, it provides a first account of this research area and recommends possible directions for future studies.

The role of environmental management accounting and environmental knowledge management practices influence on environmental performance: mediated-moderated model

PurposeThis study aims to observe the influence of environmental management accounting (EMA) and environmental knowledge management (KM) practices on environmental performance with mediating role of top management support (TMS). Moreover, green work climate perception (GWCP) is used as a moderator between TMS and environmental performance.Design/methodology/approachPartial least square-structural equation modeling is used to test research hypotheses. Data was collected to distribute questionnaires in light of the purposive sampling technique; a total of 329 questionnaires were used for final analysis. This study is correlational and cross-sectional. Multiple regression analysis was used to see the influence of EMA, environmental KM practices, TMS and GWCP on environmental performance.FindingsThe results reveal that EMA, environmental KM practices and TMS are positively related to environmental performance. Moreover, TMS significantly mediates between EMA, environmental KM practices and environmental performance. GWCP is positively associated with environmental performance. Finally, GWCP significantly strengthens the positive relationship between TMS and environmental performance.Practical implicationsThis study highlighted a significant issue that of how top management uses EMA, environmental KM practices, TMS and GWCP in examining environmental performance. Moreover, this study covers the gap and supports top management to concentrate on exogenous variables to examine environmental performance.Originality/valueThis study adds value to literature to focus on factors that influence environmental performance. This initial research observes the influence of EMA and environmental KM practices on environmental performance with TMS as a mediator in light of the knowledge-based view. Besides, GWCP is used as a moderator between TMS and environmental performance. Finally, our research can provide benefits to researchers, students and managers.