Management Accounting Practices Research Articles

Does air pollution motivate organisations to adopt environmental management accounting practices? Evidence from South Africa

This paper identifies the extent of air pollution in motivating companies to implement environmental management accounting (EMA) practices in 67 mining and cement companies listed on the Johannesburg Stock Exchange (JSE), South Africa, from 2012 to 2021. Pooled ordinary least squares regression is applied to analyse the data. EMA is proxied by environmental training, environmental audits and energy efficiency, while air pollution is measured based on the air quality index (AQI). The results show that air pollution is essential for companies to adopt EMA practices. This means that when air quality declines within a company’s locality, a company proactively adopts EMA practices. This suggests that air pollution is a key basis of companies' adoption of EMA, as predicted by the legitimacy theory. The study includes three control variables: size, return on assets (ROA) and number of years listed on JSE. Two control variables, namely Size and ROA, portray a positive and significant effect on adopting EMA from air pollution. This portrays that a financially stable company tends to submit to air pollution and use EMA to counter the pollution. In contrast, as the number of years increases for companies listed on JSE, EMA will likely be adopted less to reduce air pollution.

Effect of the Management Accounting on the Financial Performance of Small and Medium Enterprises in Rwanda: A Case of Small and Medium Entreprises in Gasabo District

Management accounting provides an excellent opportunity for companies to compete in the market by offering superior products and services at reasonable prices to customers. The general objective of this study was to study the effects of management accounting practices on the Financial Performance of Small and Medium Enterprises in Gasabo district, Rwanda. This study adopted a correlation study design. The target population for this study was the 171 small and medium enterprises in Gasabo district Stratified random sampling method was applied to come up with the sample size, since the population in different Small and Medium Enterprises was considered heterogeneous, implying that a simple random sample is unrepresentative. The study therefore involved 171 Small and Medium Enterprises in Gasabo district. The study collected primary data from the respondents. The data collected was both quantitative and qualitative. Qualitative data is descriptive and non-numerical, while quantitative data is numerical. The study found that Budgeting was the most widely used management accounting practices, including budgeting for planning, activity-based budgeting, flexible analysis, zero-based budgeting, and budgeting for controlling costs. costing systems were the second most widely used management accounting practice, including separation of variable, incremental, and fixed costs; plant-wide overhead rate; activity-based costing; target costing; and cost of quality. Information for decision making was also used by respondents, including stock control models, customer satisfaction analysis reports, product profitability analysis reports, risk analysis reports, and investment analysis reports. Strategic analysis was also highly used by respondents. The study further concludes that the most important elements of management accounting practices amongst the Small and Medium Enterprises in Gasabo district are; the management accounting function identifies key factors that influence Financial Performance and management accounting practices have increased return on equity (ROE), which is a measure of how profitable a company is for its shareholders. This is because management accounting practices help companies to identify and improve risky areas, which can lead to increased profits. This study recommends the creation and enhancement of awareness among firms of the importance of Information for decision making practices as this is the most highly used management accounting practice amongst the Small and Medium Enterprises in Gasabo district. Keywords: Management Accounting Practices, Costing Systems, Budgeting, Information for Decision Making, Strategic Analysis, Financial Performance, Small And Medium Enterprises

Management Accounting Practices In Indian Universities: A Comparative Study Between Public And Private Sectors

Management Accounting Practices In Indian Universities: A Comparative Study Between Public And Private Sectors

Management accounting practice as understanding, supporting and advancing local epistemic methods

Purpose The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of economic performance for decision-making. Design/methodology/approach The paper is based on qualitative semi-structured interviews with local business actors, in this case, families from seven financially successful Danish dairy farms. The casework and the analysis have been informed by pragmatic constructivism. Findings The local business actors do not use the official accounting system for ongoing cost-management-related decision-making. Instead, they use several epistemic methods that include locally developed decision models, experiences, rules of thumb and intuition. The farmers use these vernacular accountings to compensate for the cost management illusion that the formal accounting system tends to create. What the study suggests is that when management accountants engage as business partners, they are likely to enter a space where accounting is already present. Originality/value This paper argues that local business actors practice epistemic methods where they develop and use vernacular accountings to support their managerial practice, also in the absence of a professional management accountant. These vernacular accountings may lead the local actors into an illusion because the vernacular accountings do not necessarily have an inherent economic logic and theoretical reliability. The role of the management accountant in such a setting is hence to understand, support and advance local epistemic methods. Becoming a business partner requires a combination of management accounting analytical skills and a sense of empathy and sensitivity regarding what is already at play and how this can become an object of discussion without violating the values of the other.

Development and application of financial statement filing robot based on RPA technology

The constant development and application of new technologies, such as big data, artificial intelligence and the mobile Internet, have profoundly changed the personal and professional spheres. Despite these advances, finance professionals are still faced with a multitude of routine, repetitive and error-prone tasks. At the same time, they are challenged by the shift to management accounting, resulting in reduced productivity. This paper addresses these issues by introducing a financial statement filing robot developed using Robotic Process Automation (RPA) technology. The application of this robot has been shown to provide superior efficiency and accuracy, reduce the heavy burden of routine tasks, and facilitate a smooth transition to management accounting practices. In addition, this research provides a valuable reference for the application and diffusion of RPA technology in the financial sector. Given the large amount of text data generated by financial processes, this paper proposes an automatic text categorization model. The effectiveness of the model is demonstrated as a response to address the challenges encountered in the consultation and archiving process. This contribution informs the development of text categorization robots tailored to the needs of finance professionals.

‘Money does not stink’ – Accounting and slavery

This article supplements the multidisciplinary effort sparked by the New York Times's 1619 Project to focus attention on institutions and practices that supported American slavery. Managerial and financial accounting practices support many types of endeavours. Accounting is usually done for managers, investors, and creditors. Accounting practices supported investment in, and management of slavery, a fundamentally immoral and destructive practice. Accounting served the interests of the enslavers, not the enslaved. Accounting practices helped investors in slave voyages and absentee plantation owners overcome agency problems, facilitating investment. Plantations used accounting to track enslaved people's productivity. Accounting terms and reports dehumanised enslaved men and women, classifying them as assets and as loan collateral. Accounting forms and statements treated slave ownership and the use of slave labour as routine. In these ways, accounting statements helped normalise and legitimise the practice of slavery and helped distance investors and lenders from its brutal reality.

Towards an institutional understanding of risk-based management controls: evidence from a developing market

PurposeIn developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from institutional studies, this study aims to examine the multiple institutional pressures surrounding an entity and influencing its risk-based management control (RBC) system – that is, how RBC appears in an emerging market attributed to institutional multiplicity.Design/methodology/approachThe authors used qualitative case study research methods to collect empirical evidence from a privately owned Egyptian insurance company.FindingsThe authors observed that in the transformation to risk-based controls, especially in socio-political settings such as Egypt, changes in MAC systems were consistent with the shifts in the institutional context. Along with changes in the institutional environment, the case company sought to configure its MAC system to be more risk-based to achieve its strategic goals effectively and maintain its sustainability.Originality/valueThis research provides a fuller view of risk-based management controls based on the social, professional and political perspectives central to the examined institutional environment. Moreover, unlike early studies that reported resistance to RBC, this case reveals the institutional dynamics contributing to the successful implementation of RBC in an emerging market.

The Effects of Span of Control and Temporal Disaggregation of Performance Reports on Discretionary Performance Evaluations

ABSTRACT Span of control and temporal disaggregation of performance reports are two important control system elements that jointly determine the benchmarks that managers have available when evaluating employees’ performance. Using an experiment, we investigate whether widening managers’ span of control and temporally disaggregating performance reports affect managers’ evaluation decisions. We predict and find that managers with a wider span of control evaluate their best performing employees more favorably and their worst performing employees less favorably. We also find that disaggregating performance reports, i.e., providing quarterly performance figures in addition to annual performance figures, has a negative effect on managers’ evaluations of their best performing employees, but only when their span of control is wide. We discuss the implications of our findings for management accounting research and practice. Data Availability: The data and research instrument are available from the authors upon request. JEL Classifications: M10; M40; M50; D91.

A review of U.S. management accounting evolution: Investigating shifts in tools and methodologies in light of national business dynamics

This study provides a comprehensive analysis of the evolution of management accounting in the United States, focusing on the shifts in tools, methodologies, and the influence of national business dynamics. The primary objective was to understand how management accounting practices have adapted to technological advancements, economic changes, and regulatory developments. Utilizing a systematic literature review process, the study involved identifying relevant literature through databases like Scopus, Web of Science, and Google Scholar, employing keywords related to management accounting evolution. The selection of sources was based on predefined inclusion and exclusion criteria, emphasizing relevance, quality, and methodological rigor. Content and thematic analysis was used to interpret findings from the qualitative data. Key findings revealed a significant evolution from traditional cost accounting methods to strategic, data-driven approaches, influenced by technological advancements and changing business environments. The study identified a shift towards integrated, predictive, and data-driven management accounting practices, with a growing focus on sustainability and digitalization. The impact of technological, economic, and regulatory factors was found to be profound, necessitating continuous adaptation in management accounting practices. The study concludes that management accounting in the U.S. is highly dynamic, responding effectively to technological and economic changes. Recommendations for future research and practice include embracing technological advancements, adapting to economic and regulatory changes, focusing on sustainability, enhancing education and training, and encouraging collaborative research. This study underscores the necessity for ongoing adaptation and innovation in management accounting to maintain relevance in a rapidly evolving business landscape.

Pathways to Consolidate Corporate Governance by Incorporating Gaps in Management Accounting Practices: An Integrative Literature Review Research Approach

Corporate governance receives considerable attention from various stakeholders due to the search for potential agents that cause threats to sound corporate management practices. The fall of Enron and Arthur Anderson was an eye opener toward the journey of long years of corporate scandals and corruption. The Sarbanes-Oxley Act of 2002, which includes various codes and guidelines, evolved as an immediate solution to the problem. Traditionally, accounting has become an integral part of managing corporate governance as it is central to generating financial information for various stakeholders. However, research attention, so far, centers around public accountants due to their universal legitimacy in performing public account attestation services. Management accountants can also play important roles in strengthening corporate governance by instilling sound management accounting practices in various corporate affairs where governance is under threat. This dimension is grossly ignored in the existing literature, narrowing the role of accounting in a broader spectrum of governance. Applying the integrative literature review method as an epistemological paradigm, this study undertakes a theoretical attempt to highlight the roles that management accountants can play in strengthening the governance of firms from both external and internal perspectives. The incremental contribution of the article is to enlarge the remit of corporate governance by aligning the functionalities of management accountants with the mainstream study of corporate governance. It opens further research agendas for academics, practitioners, regulators, and other stakeholders.

The Effect of Strategic Management Accounting Practices on Firm Performance in Jordan, the Mediating Role of Supply Chain Management Practices

The Effect of Strategic Management Accounting Practices on Firm Performance in Jordan, the Mediating Role of Supply Chain Management Practices

The Relation Between The Intensity of Market Competition, Intellectual Capital, Management Accounting Practices in Coventional and Digital SME

This study investigates the difference of the impact of external and internal environment on the use of management accounting practices between conventional and digital SMEs. The use of management accounting practices assists the SMEs to make good decision. The aim of the study to test the relationship between intensity of market competition (external environment) and intellectual capital (internal environment) on the use of management accounting practices, so that the SMEs leverage their performance. The population of this research is conventional and digital SMEs in East Java. This study uses the convenience method as a sampling technique. The data collection results are 179 SMEs consisting of 127 conventional and 52 digital SMEs. The test results with SMART-PLS show that (1) the intensity of market competition has a positive effect on intellectual capital both conventional and digital SMEs, (2) intellectual capital has a positive effect on traditional MAP and on contemporary MAP both conventional and digital SMEs, (4) traditional MAP has a positive effect on business performance in conventional SMEs, and (5) contemporary MAP has no effect on business performance in digital SMEs.

How Companies Create Value Through Management Accounting Practices in the Era of the Covid Pandemic

Purpose: This study aims to explore Management Accounting Practices (MAPs) in Indonesia and the impact that Covid-19 had on them. It also aims to establish the factors that affected MPAs during the pandemic, and the effect that these practices had on business performance. Design/methodology: Descriptive and verification methods were used. The former was employed to detail MAPs in manufacturing companies in Indonesia and the impact that the Covid-19 pandemic had on these practices. The verification method (using multiple linear regression) was employed to examine the factors that influence their MAPs and the effect of these practices on business performance. This study used primary data obtained from controllers who work for different Indonesian manufacturing companies. The total sample was composed of 41 questionnaire responses. Findings: This paper shows that most manufacturing companies in Indonesia have adopted MAPs for cost systems, decision-making, business strategies, and advanced manufacturing technology. In general, these MAPs are at Stage 4 as defined by the IFAC. This means that, in Indonesia, MAPs are implemented to create value and maintain companies’ sustainability in the era of Industry 4.0. Conclusions: The pandemic increased the implementation of MAPs, which had a significant effect on the intensity of market competition and firm performance. The results of this study support Statement 1 on Management Accounting by the IFAC, according to which accounting practices in Stage 4 are focused on the effective use of organizational resources to create value. Originality: This study focuses on manufacturing companies in Indonesia and the period of the Covid-19 pandemic, which brought about special conditions that impacted business operations. These results are in line with changes in the current business environment, and companies can consider them to create value and continuously improve their performance.

The contemporary management accounting practices adoption in the public industry: Evidence from Jordan

The present study examines the effect of variables on contemporary management accounting practices' adoption in the public sector. The present research further investigates the relationship between the uptake of contemporary management accounting practices and organizational performance and change. 520 surveys were mailed to the public sector in Jordan to gather data, which was subsequently analyzed employing SEM. The findings of the research indicate that there are substantial relationships between accounting staff qualifications and management accounting practices. Results indicate that modern management accounting practices could help public sector practitioners enhance performance and promote organizational change. The investigation offers concrete insight into the public sector's uptake of management accounting practices. The research conducted offers a field study of the impact of implementing a suite of management accounting practices in the public sector.

Reproduction of Efficiency Through Management Accounting Practices: Socio-Economic, Environmental and Human Consequences of NPM Reforms

Reproduction of Efficiency Through Management Accounting Practices: Socio-Economic, Environmental and Human Consequences of NPM Reforms

The impact of digital transformation on management accounting practices: A survey study of a sample of Iraqi academics in accounting specializations

The impact of digital transformation on management accounting practices: A survey study of a sample of Iraqi academics in accounting specializations

Management Accounting Practices and Internet Financial Reporting of Listed Manufacturing Companies in Nigeria.

The study explores the effect of management accounting practices on internet financial reporting of listed manufacturing companies on the Nigeria stock exchange (NSE). It employed the descriptive research design using panel data set from the financial reports for a 10 years period between 2010 to 2019, of the sampled companies. The population of the study is the whole listed manufacturing companies that have website address which cut across health manufacturing, consumer goods manufacturing, industrial goods manufacturing and conglomerates companies, numbering 65 companies, the sample size for this study is 42 companies that have active website address, and is derived using the purposive sampling technique. The trusted search engines used to source for data for this study includes; www.google.com, www.proshare.com, africanfinancials.com, to establish the real website of the sample companies. The multiple linear regression method and the ordinary least squares models were used to analyze data collected. The study adopted the Internet Disclosure Index as proxy for dependent variable, while the independent variables were cost of resources supplied, economic value added and modified cost volume profit. The result of the study showed that a positive significant relationship exists between cost of resources supplied and internet financial reporting disclosures, that economic value addition showed a negative significant relationship with internet financial reporting disclosures, a positive insignificant relationship exists between modified cost volume profit and internet financial reporting disclosures each in the sampled companies. It is therefore, recommended based on these findings that Companies in this sector should endeavor to manage their cost of owning a website so as to maintain the benefit of internet financial reporting, the value additions in respect to using internet financial reporting must be adequately analyzed so that the purpose of using it will not be defeated, and that a well-planned cost-volume-profit analysis be carried out to ensure that the huge bill involved with financial reporting is defrayed within the companies’ margin of safety.

Proposition of an Enhanced Model on the Institutionalization of Management Accounting Practices

Proposition of an Enhanced Model on the Institutionalization of Management Accounting Practices

The Interaction Between Supply Chain Relationships And Management Accounting: A Literature Review

This study explores whether and how supply chain relationships have developed ‘matters of concern’ among researchers regarding the relevance of management accounting practices. A literature review of accounting, operations, and management literature was conducted to identify the ‘matters of concern’ among researchers. ‘Matters of concern’, one of the notions of Actor-Network Theory, was employed as a theoretical framework in this study. The findings of this study highlight the inadequacy of the conventional wisdom of management accounting in managing and supporting supply chain relationships. It shows how researchers focus not only on the issues within management accounting per se but also on the complexities that prevail in managing supply chain relationships and the reciprocal effects between management accounting and such complexities. This study paves the way for researchers to empirically investigate the ‘matters of concern’ and find ways to drive ‘matters of facts’ in the context of management accounting and supply chains.

THE JOURNEY OF MANAGERIAL ACCOUNTING RESEARCH IN SINTA 4-INDEXED JOURNALS

Research Purposes. This study uses a bibliographical approach to describe managerial accounting research (MAR) intention in Indonesia. The research materials are pertinent publications that appeared in SINTA 4-indexed journals between 2011 and 2022. Research Methods. Relevant articles are filtered based on several selection criteria at the Indonesia National Indexer (SINTA), journals, and articles. The metadata of the articles is tidied via Zotero reference management software. The output is CSV and RIS files. MS Excel and Tableau processed CSV files for visualization and qualitative analysis purposes, and RIS files were analyzed by VOSviewer software to create research network maps based on keyword occurrences. Several reputable international journals are used as a comparison. Research Results and Findings. In 2011-2022, 21 of 441 SINTA 4-indexed journals contained 129 articles (6% of 2,300) on managerial accounting topics. These topics form six research clusters with highly varied occurrences, links, intensities, and publication periods. Sustainability-related issues are in the first cluster. In general, SINTA 4-indexed journals in Indonesia, including accounting-specific journals, have not placed managerial accounting as a particular priority. This research produces a bibliographic map of managerial accounting research in the 2011-2012 period, which can be used as a reference for further research, as well as contextual development of managerial accounting practices.