Management Accounting Practices Research Articles

Management Accounting Practices and Financial Performance of Hotel Business in Thailand: Are Contingency Theory Perspectives Still Relevant During the Covid-19 Pandemic?

This study examines the impact of perceived uncertainty on management accounting practices (MAPs) and financial performance in Thai hotels during the COVID-19 pandemic. Using Generalized Structured Composite Analysis (GSCA), results show that uncertainty significantly influences MAP implementation, enhancing financial performance. MAPs partially mediate the relationship between uncertainty and performance, indicating their role in addressing uncertainty but not fully explaining performance outcomes. This research highlights that MAPs should be seen not just as reactive measures but as proactive tools for building resilience in dynamic environments, offering insights into contingency theory application.

Examining the Influence of Sustainable Management Accounting on Sustainable Corporate Governance: Empirical Evidence

This study, with its practical implications, is a valuable resource for organisations. It examines the impact of Sustainable Management Accounting (SMA) practices on the implementation and effectiveness of Sustainable Corporate Governance (SCG) within organisations. It also investigates the various dimensions of SMA and explores the mediating roles of the Internal Control System (ICS) in the relationships between SMA and SCG. The empirical data, collected from 512 individuals across India using a purposive sampling technique, represent a diverse cross-section of the population, including shareholders, investors, finance officers, executives, and professionals such as chartered accountants, lawyers, bankers, and company secretaries. The findings of this study are actionable, indicating that SMA has a positive and significant impact on SCG. Furthermore, it was found that SMA is influenced by factors such as the accounting system, reporting method, transparency policy, and stakeholder involvement. Moreover, the results suggest that companies with well-developed sustainable accounting systems have enhanced ICS and corporate governance metrics, which in turn result in improved board oversight and stakeholder engagement. Finally, the outcome of this study not only assists in developing sustainable corporate governance through sustainable accounting management but also contributes to the UN’s sustainable goals through accounting and governance in the corporate culture and approach.

A hierarchical clustering analysis of the management accounting practices perceptions in Romania

A hierarchical clustering analysis of the management accounting practices perceptions in Romania

The Influence of Financial Literacy, Risk Orientation and Qualified Accountants on Performance in Micro, Small and Medium Enterprises: The Mediating Role of Management Accounting

There are limited studies examining whether the owner or manager’s financial literacy, risk orientation, and deployment of qualified accounting staff influence the adoption of management accounting practices (MAPs) and performance in the context of micro, small, and medium-sized enterprises (MSMEs). Thus, this study seeks to examine the effect of financial literacy, qualified accounting staff, and risk orientation on performance, with MAPs as a mediating variable within the context of MSMEs from a developing country. A quantitative study was established where a questionnaire survey was administered to Malaysian MSMEs from different sectors. Based on 105 valid responses, the results show that MAPs have positive and significant effect on performance. The study also reveals that MAPs significantly and fully mediate the relationships between owner/manager’s financial literacy, qualified accounting staff, risk orientation, and performance of MSMEs. The findings provide significant data for identifying key factors within the setting of small businesses in developing countries to improve financial resilience in the current competitive economy. Our findings offer valuable insight to practitioners about how competencies and key management accounting concepts can consequently affect the positive outcomes of organisational performance.

Seizing overflows: exploring how accounting becomes emancipatory

Purpose Through an in-depth case study, this paper aims to investigate how workplace struggles can meaningfully change management accounting practices. Design/methodology/approach This is an archival study drawing on 10 years of governmental documents, news media and a court case. The theoretical notions of framing and overflowing are used to investigate how a calculative change was introduced, problematized and reverted. Findings An initiative to increase care quality through the empowerment of care recipients led to a calculative change and to an intensification of work, which union representatives turned into a health and safety complaint. “Seizing” the overflow from the calculative change and “redirecting” it into the health and safety arena allowed the unions to draw support from the national work health and safety agency. In response, the organization rolled back the calculative change. Originality/value This paper introduces the notions of seizing and redirecting overflows. When combined with conduits of overflows, a part of Callon’s (1998) conceptual apparatus that previously has received little attention, these notions constitute a framework that helps identify conditions that make emancipatory uses of accounting and control outputs possible.

Farmers' Financial Literacy—Scale Development and Linkages to Accounting Practices and Financial Outcomes

ABSTRACTThis study investigates the financial literacy (FL) of Swedish farmers, its linkages to farmer characteristics, management accounting practices and farm outcomes by surveying Swedish Farm Accountancy Data Network farmers. Using item response theory, we expand the existing FL measurement specifically to the farming context, assess measurement items and compare shorter and longer scales of FL. Our findings indicate high levels of FL among respondents. FL is positively associated with more extensive management accounting practices, greater farm profitability and lower cost of debt, independent of other farmer characteristics, including education, numeracy, need for cognition, and money vigilance. The findings suggest the relevance of FL as a farmer characteristic for both practices and outcomes, even when included through its shortest and more established measurement scale.

Management accounting practices going sustainable: the move toward sustainable risk management in ASEAN developing economies

Purpose The purpose of this study will be to provide a comprehensive perspective on sustainable risk management (SRM) with internal components within enterprises. Particularly, this study aims to explore how sustainable management accounting practices mediate the influence of both risk-taking tendency (RTT) and sustainable core values on SRM. Additionally, it also examines the moderating influence of the RTT on the link between sustainable management accounting practices and SRM, as a mediated moderating model. Design/methodology/approach The study hypotheses have been appraised using partial least squares structural equation modeling with observed information from 495 sizeable listed enterprises in ASEAN developing economies, comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Findings The findings have been as follows: (1) The RTT favorably influences sustainable management accounting practices (SMAPs), which, in turn, affects SRM; (2) Sustainable core values favorably affect SMAPs, which, in turn, affect SRM; (3) It can be specified that SMAPs mediate the influence of both RTT and sustainable core values on SRM; (4) When the RTT is strong, the influence of SMAPs on SRM has been enlarged. Originality/value The findings of this study demonstrate how the interaction between RTT and SMAPs can benefit to the success of large enterprises that use risk management systems in emerging economics. Furthermore, the present paper interprets the mechanism by which SMAPs influence SRM.

Environmental Management Accounting Practices: The Use, Motivations and Barriers for Large Manufacturing Firms in Lower Northern Provinces Group I, Thailand

This work studies environmental management accounting practice (EMAP) that enterprises apply to ensure the prevention of environmental damage caused by their daily operational activities, including motivations and barriers to adoption. A descriptive study was performed in 10 large manufacturing enterprises in the lower northern provinces group I Thailand via semi-structured interviews and in-depth qualitative interviews with manager/ owner. The result shows that half of the enterprises have implemented EMAP as a requirement for qualifying for ISO 14001 certification. The rest only prepare internal reports for planning, controlling and making operational decisions related to environmental information. The result also indicates that strict legislation, integrating environment into corporate strategy, and sufficient resources play a vital role in EMAP adoption. In addition, this study indicates that the key barriers limiting the implementation of EMAP are lack of resources, knowledge/ expertise/ guidance, and internal difficulties, respectively. This study gives contributions to the government, managers and relevant authorities by providing useful information on the motivations and barriers influencing EMAP adoption, which can help them to establish policy in the field of environmental management. Furthermore, it suggests that managers value EMAP for internal management not only for improvement of environmental performance but also increasing the role of accounting in business.

Nice to value. Unraveling the nexus between management accounting use and financial performance: A quantitative study of SMEs

ABSTRACT This study investigates the intricate relationship between management accounting (MA) practices and financial performance (FP) in small and medium-sized enterprises (SMEs) in Italy and Germany, offering practical insights for practitioners and policy makers. Despite the theoretical benefits of MA practices like cost accounting, budgeting, and key performance indicators, their implementation in SMEs remains limited. Prior research suggests that SMEs often rely on informal control systems due to resource constraints and a lack of familiarity with MA tools. The COVID-19 pandemic and recent European conflicts have stressed the need for robust MA practices to navigate economic volatility and enhance resilience. Using a quantitative approach, data were collected via questionnaires from 238 SMEs in Italy and Germany, targeting chief financial officers, board members, and majority shareholders. The analysis, employing partial least squares structural equation modeling, reveals a significant positive impact of MA practices on FP. Factors such as resource availability, training, and the culture of control play crucial roles in this relationship. These findings underscore the strategic importance of MA in driving organizational performance and highlight the need for SMEs to adopt these practices more comprehensively. This study offers valuable guidance for SME managers in enhancing operational efficiency and strategic decision making. Moreover, it provides policy makers with evidence-based recommendations to support SME growth and resilience through targeted training programs and resource allocation, ensuring a robust framework for economic stability and development.

Practices of Management Accounting Techniques in Service Sector Public Enterprises in Nepal

Management accounting is the act of making sense of financial and costing data and translating that data into useful information for management and officers within an organization. This research aims at examining the practice of management accounting and the major difficulties in applying management accounting tools in the public enterprises of the service sector of Nepal. It also tries to assess the impact of management accounting system on the performance of sampled organizations. The specific survey research has been followed with a descriptive-analytical approach. A structured questionnaire was used to collect primary data from the respondents which were analyzed by the multiple correlation and regression model. The study employed simple judgmental sampling procedure to draw the samples. Out of the seven public enterprises in Nepal that operate in the service sector five were selected as the samples. The results revealed that there is a significant impact of management accounting systems on organizational performance. The study suggested to implement the effective managerial tools and techniques a separate managerial accounting department should be established within an organization. The study also recommended that academicians who have better knowledge about MA tools and techniques should put in the effort to develop environmentally friendly tools and techniques into practice and also to keep management accounting information system. It helps to keep them informed from time to time about every aspect of MA and its application.

COST AND MANAGEMENT ACCOUNTING PRACTICES OF 4 AND 5 STAR HOTELS IN KONYA PROVINCE

In the tourism sector today, where competition is intensely felt and high risk and uncertainty are present, businesses need to effectively and efficiently use their resources to sustain their existence. Hotel busineses, established with high capitals, aim to increase their profitability by controlling costs in these challenging market conditions. Especially, hotel businesses facing situations such as seasonal fluctuations in demand and changing customer needs and expectations, need good management and accounting systems for both performance evaluation and strategic planning. At this point, the presence of management accounting, which provides all the financial and non-financial information needed by the managements and affects decision-making, is of great importance for hotel businesses. Thus, the aim of this study is to examine the management accounting practices of 4 and 5-star hotel businesses in Konya province and to determine their current situation. According to the findings of the research, it has been determined that 50% of the hotel businesses have a separate management accounting department, and 58.3% have a separate cost accounting department. In terms of costing approaches, 66.7% have adopted activity-based costing, 58.3% have adopted full costing approach, and the standard costing approach, at 33.3%, is relatively lower compared to others. Moreover, it has been found that the use of actual costing, budgeting activities, performance evaluation methods, and strategic management accounting practices have a high level of benefit for the businesses.

Factors influencing the adoption of management accounting practices among Albanian family businesses

Factors influencing the adoption of management accounting practices among Albanian family businesses

Unveiling the financial management landscape: A comparative study of management accounting practices in public and private universities of India

This study analyses respondents' demographics and analyses public and private universities in India's financial management, sustainability, and problems. Two hundred universities were surveyed to determine their gender, age, education, and experience. To assess financial management practices and identify critical aspects affecting financial sustainability, 100 public and 100 private universities were surveyed. This research contrasts public and private university financial management. Private universities emphasize financial transparency and efficiency, although both types recognize the significance of varied revenue streams, enrollment, and student retention for financial sustainability. Financial technology, public university funding, and private university funding management are all issues. Hypothesis testing shows that financial management practices affect university financial sustainability, suggesting that good financial management is essential for long-term survival. Policymakers, university administrators, can learn from this research. Stakeholders may optimize operations and achieve long-term success by understanding worker demographics and financial trends. This study enhances financial management knowledge and provides advice for economic resilience.

Is Management Accounting Education Keeping Pace with Practice? A Study on the Theory-Practice Gap Using Terminology Analysis

ABSTRACT Building on theory by Argyris and Schön (1974) and theory on mental models, we argue that a disconnection between the terminology used in management accounting education and practice may be one of the clearest indicators of a theory-practice gap. For this reason, we examine to what extent practitioners understand and use commonly taught management accounting terminology. Overall, we expect a large gap between terminology taught and used, which we expect to depend on the organizational context of the management accountant and whether (s)he exerts a business partner role. We also expect that this gap may hamper management accountants’ professional identification. Survey results show, in contrast to our expectations, a limited theory-practice gap, even if concepts coming from frameworks and typologies are distinctly underused. Further, we find that the gap is smaller for management accountants performing a business partner role. Data availability: The data are available upon request from the authors.

Application Of Business Ethics and Good Corporate Governance To Company Financial Performance

This research aims to assess the relationship between the implementation of business ethics, Good Corporate Governance (GCG) practices, the role of the board of directors, and managerial accounting practices on company financial performance. Through a comprehensive literature analysis, evaluating empirical evidence from a number of relevant studies in this theme. The findings show that implementing strong business ethics can increase shareholder and creditor trust, which in turn has a positive impact on a company's financial performance. Furthermore, effective GCG practices, including transparency, accountability and independence of the board of directors, have been proven to have a significant impact on improving a company's financial performance. The role of the board of directors as a supervisor and strategic advisor also has an important role in ensuring compliance with ethical standards and GCG principles. On the other hand, thorough managerial accounting practices can help management make better decisions, which ultimately improves the company's financial performance. Therefore, uniting business ethics, GCG, the role of the board of directors, and managerial accounting is the main key in improving the company's overall financial performance. Keywords: Business Ethics, Good Corporate Governance, Board of Directors, Financial Performance.

Review of Management Accounting in a Digital Economy

The paper gives an overview of the transformation in management accounting practices in a digital economy. Advanced technologies such as big data analytics, cloud computing, artificial intelligence, and blockchain digitised traditional accounting ways by providing real-time data processing, enhanced decision-making, and strategic insights. The review focuses on how technological innovations have changed data collection, analysis, and reporting links, moving attention away from record-keeping to predictive and prescriptive analytics. Discussions are the automation of routine tasks, real-time financial reporting developments, and increased involvement of management accountants in strategic planning and risk management. The review talks about cloud accounting systems, machine learning in managing costs, blockchain for financial transparency and security, and how digital transformation opens up some critical challenges related to data privacy concerns, security risks, and massive upskilling on the part of accounting professionals. The paper addresses these issues by examining strategies to mitigate identified risks and bridging skill gaps through specific training and educational efforts. It further reviews the emerging trends in predictive and prescriptive analytics and discusses their potential applications in Management Accounting. The review sheds light on changing regulatory scenarios that will impact digital practices in accounting. The implications of this digital transformation are huge and thus require a rethink in the role of management accounting within organisations. It calls for management accountants to reposition themselves in the field and stay relevant by embracing new technologies while attaining strategic competencies, enabling them to drive value creation against the drastic changes in the digital age.

INTEGRATION OF ARTIFICIAL INTELLIGENCE IN MANAGEMENT ACCOUNTING: A SWOT ANALYSIS

Today, information is the source of competitive advantage and businesses need to create information architecture that will enable them to make the right decisions in the fastest way. For this reason, it seems inevitable that businesses will reshape their entire business environments in a way that will create far-reaching consequences on business processes and prioritize technological progress by investing in artificial intelligence (AI) applications to create value with better performance. Management accounting is a business function that is central to identifying, collecting, measuring, and analyzing data. Therefore, these developments are expected to change management accounting practices and the roles of management accountants within the business. Although it is predicted that the main function of accounting in the future will be to create real-time value for the business by combining management accounting applications with AI, this combination also carries the potential to create significant problems. The purpose of this study is to conduct a SWOT analysis and examine the strengths and weaknesses of the use of AI in management accounting and the opportunities and threats that may arise as a result of this integration.

The effect of Porter’s competitive forces on competitive advantage and organisational performance and the moderating role of management accounting practices

This study examines the effect of the intensity of competitive forces on organisational performance and competitive advantage and the moderating role of the use of traditional and contemporary management accounting practices on this relationship. Using survey data collected from 505 US-based financial managers, the findings indicate that the use of traditional management accounting practices was found to positively moderate the effect of the intensity of competitive forces on competitive advantage. Additional exploratory analysis revealed that the extent of use of contemporary management accounting practices positively moderates the effect of the intensity of competitive forces on organisational performance in a product differentiation/high-force environment. The extent of use of contemporary management accounting practices was also found to positively moderate the effect of the intensity of competitive forces on competitive advantage in a low-cost/high-force. However, the extent of use of contemporary management accounting practices was found to negatively moderate the effect of the intensity of competitive forces on competitive advantage in a product differentiation/low-force environment. Finally, the extent of use of traditional management accounting practices was found to negatively moderate the effect of the intensity of competitive forces on organisational performance in the product differentiation/high-force model. These findings provide a preliminary insight into the important role of management accounting practices in the management of competitive forces.

Contabilidade gerencial no terceiro setor: um estudo de caso na organização de amparo ao idoso “sou feliz” em Marechal Floriano (ES)

This paper aimed to identify how the management accounting tools used by a third sector organization in the city of Marechal Floriano (ES) are configured in light of the evolutionary stages proposed by IMAP I (document prepared by the International of Management Accounting Practices). Methodologically, descriptive research was developed with a qualitative approach and data collection through face-to-face forms and direct observation. The results suggest that the organization is in an intermediate evolutionary phase in relation to the use of management accounting tools. It was observed that most of the tools from the first and second evolutionary stages, which are considered traditional, are being used. On the other hand, a low use of tools from the third and fourth evolutionary stages, which are considered modern, was also identified. It was concluded, therefore, that the organization needs to increase the use of modern management accounting tools in order to qualify its organizational management.

The Impact of Management Accounting Practices on Firm Performance: A Conceptual Framework

The Impact of Management Accounting Practices on Firm Performance: A Conceptual Framework