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21 – 30 of over 91000The 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…
Abstract
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.
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Iriyadi and Bruce Gurd
Research into the impact of the interaction between budgetary participation and budget emphasis on managerial performance and job related attitudes has failed to provide…
Abstract
Research into the impact of the interaction between budgetary participation and budget emphasis on managerial performance and job related attitudes has failed to provide consistent results. Researchers are in general agreement that aspects of national culture, affecting the behaviour and attitudes of individuals within organisations, have to be taken into account. Motivated by the encouraging findings of Harrison's (1992) study in Singapore, this study is a partial replication of Harrison (1992, 1993) in the context of Indonesia. It explores further whether a high budget emphasis is an effective superior evaluative style in nations categorised as high power‐distance (PD) and low individualism. Specifically it examines the effect of participation on the budget emphasis in a superior's evaluative style and dependent variables: job satisfaction and managerial performance. In addition to the structured instruments used in prior research, open ended questions captured attitudes to management control issues. The results indicate that in Indonesia a low budget emphasis improves managerial performance, while high participation increases Indonesian managers' job satisfaction. This result does not wholly support previous research findings and leads to discussion of Indonesian national characteristics which potentially contribute to the impact of a superior's evaluative style in Indonesia. This research suggests that the same performance evaluative style is unequally effective across the nations common to Hofstede's cultural dimensions.
Arnold Schneider and Jonathan Kugel
This chapter traces the evolution of personality trait research in the behavioral accounting literature and offers suggestions for past and future trends. These personality traits…
Abstract
This chapter traces the evolution of personality trait research in the behavioral accounting literature and offers suggestions for past and future trends. These personality traits include, among others, those measured by the Myers-Briggs Type and Five Factor models (FFMs), Type A/B, tolerance for ambiguity, locus of control, authoritarianism, and the Dark Triad components of narcissism, Machiavellianism, and psychopathy. In a broad spectrum analysis of accounting journals without regard to timing or geographics, we attempt to capture the major phases of personality trait research and provide suggestions as to the surrounding environment for such progressions in the literature. In addition to more established research streams, this chapter also discusses other personality traits that have only been marginally investigated in the accounting literature, and possible directions for future research.
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Celina Gisch, Bernhard Hirsch and David Lindermüller
This study aims to understand how reporting practices act as drivers of change in situations of conflicting institutional logics in a public sector organisation.
Abstract
Purpose
This study aims to understand how reporting practices act as drivers of change in situations of conflicting institutional logics in a public sector organisation.
Design/methodology/approach
The findings are based on a case study of a German federal authority, where management accounting reports were introduced as part of a “new” managerial logic of control.
Findings
In the case organisation, management accounting reports were intended to change the behaviour of executives but were still guided by an “old” logic of justification. Nevertheless, over time, the addressees of the reports used the reports and reconciled different logics. This documents a process from decoupling to compromising and, finally, reconciling different institutional logics.
Originality/value
By examining the practices of management accounting reporting, this study elaborates the tensions placed on individuals by conflicting institutional logics and provides insights into how organisational practices are used to handle and reconcile conflicting logics in a public sector organisation. Therefore, this paper contributes to the discussion on how organisational practices act as drivers of organisational change.
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Candy Bianco, Elliott Levy, Mary Marcel, Mark Nixon and Karen Osterheld
This chapter describes the development of a two-course sequence, which explicitly breaks down the silos between the accounting and finance disciplines. A descriptive narrative…
Abstract
This chapter describes the development of a two-course sequence, which explicitly breaks down the silos between the accounting and finance disciplines. A descriptive narrative demonstrates how these courses integrate introductory courses in general business, managerial accounting, financial accounting and finance, and are taught freshman year. The courses are based around an 18-chapter Instructional Narrative about a fictitious company, Windspark, which evolves from a start-up service business in the wind turbine industry to a retailer of parts and then a manufacturer. Topics are introduced as the entrepreneurs in the Instructional Narrative require business knowledge. Individual faculty members teach an entire course, rather than teams comprised from different disciplines. A diagnostic quiz at the beginning of the second course tests students’ understanding and retention of material in the first course. The vast majority of students pass the diagnostic quiz on the first try. Despite its rigor and difficulty, the sequence has coincided with a significant uptick in students choosing to major in finance and accounting. This sequence demonstrates the feasibility and replicability of teaching a truly integrated introductory accounting and finance course sequence. Greater coordination and cooperation between disciplines is possible, with measurable benefits for students.
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C. William (Bill) Thomas, Jane N. Baldwin, Delton L. Chesser, Charles E. Davis, Danny P. Hollingsworth and Michael A. Robinson
Rusmir Cimirotić, Verena Duller, Birgit Feldbauer-Durstmüller, Bernhard Gärtner and Martin R.W. Hiebl
Although the number of women working in management accounting has increased, the percentage of female executives in this area remains low. Previous studies examining the…
Abstract
Purpose
Although the number of women working in management accounting has increased, the percentage of female executives in this area remains low. Previous studies examining the underrepresentation of women in accounting leadership positions have analyzed factors that hinder women from reaching these positions. The purpose of this paper, by contrast, is to identify factors that support the advancement of those female executives who have reached a leadership position. Further, this paper highlights the self-reported obstacles and difficulties faced by respondents in reaching their current positions.
Design/methodology/approach
Semi-structured interviews were conducted face-to-face with ten female executives in the management accounting departments of Austrian firms. The interview transcripts were analyzed by using the general inductive approach.
Findings
The results of the study show that most women classified their social skills and professional expertise as the key factors leading to their successful advancement; however, they also highlighted that ambition and luck played important roles. The authors found that support from both life partners and superiors was essential for these women in reaching their current positions and in handling difficulties when in a leadership position. Further difficulties include working time, work-life balance and motherhood.
Research limitations/implications
As the findings are based on interviews conducted with female Austrian executives in large (more than 250 employees) manufacturing- or service-sector firms, they are not readily generalizable.
Practical implications
This study identifies factors that may help prospective female management accounting executives reach leadership positions. Furthermore, less senior female management accountants may learn from this paper that women who have already reached leadership positions in management accounting may have had to cope with problems similar to those that younger and less senior female management accountants currently experience.
Originality/value
This paper is among the first to address gender in the field of management accounting.
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Minyoung Noh, Jimi Park and Shijin Yoo
The authors examine how a firm's strategic emphasis (SE) on value appropriation (VA) over value creation (VC) is associated with accounting conservatism.
Abstract
Purpose
The authors examine how a firm's strategic emphasis (SE) on value appropriation (VA) over value creation (VC) is associated with accounting conservatism.
Design/methodology/approach
To examine the effect of SE on a firm's adoption of conservative accounting practice, the authors measure SE as advertising expenses minus research and development (R&D) expenses scaled by total assets. The authors rely on the asymmetric timeliness of earnings from Basu (1997) to measure conditional conservatism and investigate how the incremental sensitivity of earnings to negative stock returns varies with the SE.
Findings
SE on VA over VC is found to be positively related to accounting conservatism since they want to deter entrants (i.e. competition adjustment) and to accommodate the tighter monitoring over the financial reporting system from stakeholders (i.e. risk adjustment). This argument is also supported by the additional cross-sectional tests based on the different level of market competition and external monitoring environment. In addition, the positive association between SE on VA over VC and accounting conservatism is less pronounced when managerial overconfidence is high.
Research limitations/implications
Implication is that two important decisions (i.e. SE and accounting conservatism) are related with each other since both are to create competitive advantage and to maintain financial stability for a firm, and the relation differs by managerial characteristics.
Originality/value
This study highlights the differential roles of SE in shaping the conservatism in financial reporting and the importance of overconfidence in driving conservative accounting.
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John J. Wild and Jonathan M. Wild
This study aims to investigate the relation between corporate social responsibility (CSR) and disclosure transparency by examining over 12,000 disclosures of financial statements…
Abstract
Purpose
This study aims to investigate the relation between corporate social responsibility (CSR) and disclosure transparency by examining over 12,000 disclosures of financial statements extending over 20 years. The purpose is to understand how CSR ratings relate to the level of disaggregation in financial statement line items. The study considers additional factors, such as firm size and governance, that can accentuate or moderate this relation.
Design/methodology/approach
This study applies regression analysis, including interactions, to test the magnitude of the relation between CSR ratings and disclosure transparency. CSR is measured as a composite score that ranks firms on their reputation over numerous indicators compiled by Morgan Stanley Capital International. Disclosure transparency is measured as the level of disaggregation in financial statement line items.
Findings
The study reveals evidence consistent with the notion that firms which are more CSR conscious are also more transparent with financial statements. Evidence shows that the level of transparency is more sensitive to changes in CSR for firms less CSR conscious. Firm size is found to moderate this relation, whereas enhanced governance accentuates it.
Originality/value
There is limited research on the relation between CSR ratings and disclosure transparency. To the best of the authors’ knowledge, this is the first empirical evidence on the relation between CSR ratings and the disaggregation of financial statement line items. Results from this study help us understand the drivers of disclosure transparency, which can aid regulators, investors and other stakeholders in knowing how such drivers impact managerial decisions on the disaggregation of financial statements. Accountants play a central role in producing transparent and disaggregated accounting disclosures, and their role is pivotal in effectively integrating CSR into accounting and reporting models.
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