The Role of Corporate Governance in Strategic Management Accounting

Subject Areas : Management Accounting

Khadije Ebrahimi Kahrizsangi ¹ , Vahid Bekhradi Nasab ²

1 - department of accounting, Najaf Abad branch, Islamic Azad Univercity, Najaf Abad, Iran
2 - Graduate of the Master of Accounting

Received: 2018-04-06 Accepted : 2018-06-22 Published : 2019-06-22

Keywords: Corporate Governance, management accounting, Strategic Management Accountin, Strategic Governance,

Abstract :

Strategic management accounting is one of the systems that, in the present time, can be combined with the decisions made by financial managers in the value chain by using the techniques and participation of accountants in strategic management process in the current business environment. But unfortunately, despite the passage of time, strategic management accounting techniques still remain unknown to financial managers and have led to a reduction in the techniques and participation of accountants in strategic management process decisions. The purpose of this research is to investigate the role of corporate governance in strategic management accounting. The statistical population of the study consisted of all companies listed in Tehran Stock Exchange from year 2011 to 2017. The sample also includes systematic elimination of 183 companies. The research method is based on multiple regression based data panel. Evidence of research suggests that among corporate governance factors, non-executive members of the board of directors, the board of directors and the audit committee have used strategic accounting management techniques. Overall, the results showed that the audit committee, more than other corporate governance mechanisms, uses the strategic management accounting technique.

References:

*      بخردی نسب، وحید؛ ژولانژاد، فاطمه. (1396). بررسی رفتار مدیر در برخورد با هزینه ها بر اساس رویکرد رتبه بندی شرکت ها با مکانیزم های حاکمیت شرکتی در تاپسیس فازی. فصلنامه مهندسی مدیریت نوین، مقاله 2، دوره 15، 1 و 2، ص 17-37.        

*      حساس یگانه، یحیی؛ حسینی بهشتیان، سید محمد. (1381). تأثیر وجود کمیته حسابرسی بر حسابرسی مستقل، کنترل های داخلی و گزارشگری مالی. مطالعات مدیریت بهبود و تحول. شماره 35 و 36. ص 67-90.

*      صالحی، اله کرم. (1390).  حسابداری مدیریت استراتژیک.  حسابدار رسمی. شماره 33. ص 83-93.

*      فروغی، داریوش، احمدی مرتضی، میرزائی،  منوچهر. (1391). بنیان های مفهومی حسابداری مدیریت استراتژیک. ماهنامه علمی تدبیر. ۱. :۲۳ (۲۴۳) : ص۶۱-۶۶.

*      کمالی دهکردی، پروانه؛ غلامیان، مرتضی. (1394). بررسی کاربرد تکنیکهای حسابداری مدیریت استراتژیک در شرکت های تولیدی شهرک های صنعتی. ماهنامه پژوهش­های مدیریت و حسابداری. شماره 11 و 12.  ص 47-63.

*      موسوی شیری، محمود؛ شاکری، ماهرخ. (1392). استراتژی، حسابداری مدیریت استراتژیک و عملکرد شرکت های پذیرفته شده در بورس اوراق بهادار تهران. حسابداری مدیریت.  سال هفتم، شماره 20، ص 93-107.

*      موسوی، سیدرضا؛ جباری،  حسین؛ طالب بیدختی، عباس. (1394). حاکمیت شرکتی و تجدید ارائه صورت‌های مالی. پژوهش های حسابداری مالی و حسابرسی. دوره 7، شماره 25، ص 103-126.

*      مهرانی، ساسان ؛ مرادی، محمد ؛ اسکندر، هدی. (1389). رابطه نوع مالکیت نهادی و حسابداری محافظه کارانه، پژوهش های حسابداری مالی، مقاله 4، دوره 2، شماره 1، ص 47-62.

*      Abdullah, S.N., Mohamad Yusof and Mohamad Nor, (2010), "Financial Restatements and Corporate Governance among Malaysian Listed Companies", Managerial Auditing Journal, Vol. 25, PP. 526-552.

*      Adams, Rene B. and Daniel Ferreira,(2004). “The moderating effect of group decision making”. Working Paper.Stockholm School of Economics.

*      AksoyluSemra, EbruAykan, 2013, "Effects of Strategic Management Accounting Techniques on Perceived Performance of Businesses", Journal of US-China Public Administration, Vol. 10, No. 10, 1004-1017.

*      Alnawaiseh Musa Abdel Latif Ibrahim, 2013, The Extent of Applying Strategic Management Accounting Tools in Jordanian Banks, International Journal of Business and Management, Vol. 8, No. 19, pp. 32-44.

*      Aver Bostjan, Simon Cadez. (2009). "Management Accountant’s Participation in Strategic Management Processes: a Cross-industry Comparison", Journal for East European Management Studies, Vol. 14, No. 3, pp. 310 - 322.

*      Bentley, Kathleen A, Thomas C Omer, and Nathan Y Sharp. (2013). Business Strategy, Financial Reporting Irregularities, and Audit Effort. Contemporary Accounting Research 30 (2): 780-817.

*      Bromwich, M. (1990), “The case for strategic management accounting: the role of accounting information for strategy in competitive markets”, Accounting, Organizations and Society, Vol. 15 Nos 1‐2, pp. 27-46.

*      Cadez Simon, (2006), "The Application of Strategic Management Accounting Techniques in Slovenian Manufacturing Companies", Zagreb International Review of Economics & Business, Vol. 9, No. 1, pp. 61-75.

*      Cadez, S. and Guilding, C. (2007), “Benchmarking the incidence of strategic management accounting in Slovenia”, Journal of Accounting & Organizational Change, Vol. 3 No. 2, pp. 126-46.

*      Cadez, S. and Guilding, C. (2008), “An exploratory investigation of an integrated contingency model of strategic management accounting”, Accounting, Organizations and Society, Vol. 33 Nos 7‐8, pp. 836-863.

*      Cadez, S. and Guilding, C. (2012), “Strategy, strategic management accounting and performance: a configurational analysis”, Industrial Management & Data Systems, Vol. 112 No. 3, pp. 484-501.

*      Chenhall, R.H. and Langfield-Smith, K. (2003), “Performance measurement and reward systems, trust, and strategic change”, Journal of Management Accounting Research, Vol. 15 No. 1, p. 117.

*      Cravens, K.S. and Guilding, C. (2001), “An empirical study of the application of strategic management accounting techniques”, Advances in Management Accounting, Vol. 10, pp. 95-124.

*      Donaldson, L. and Davis, J.H. (1991), “Stewardship theory or agency theory: CEO governance and shareholder returns”, Australian Journal of Management (University of New South Wales), Vol. 16 No. 1, pp. 49-64.

*      Efendi, J., Srivastava and Swanson, (2004), "Why do Corporate Managers Misstate Financial Statements? The Role of Option Compensation, Corporate Governance and Other Factors", Working Paper, Texas A&M University, College Station, TX, May 17.

*      Guilding, C- Cravens- K. S, Tayles, M. (2000): An International Comparison of Strategic Management Accounting Practices. Management Accounting Research, 2000, vol. 11, no. 1, pp. 113-135.

*      Guilding, C. (1999), “Competitor-focused accounting: an exploratory note”, Accounting, Organizations and Society, Vol. 24 No. 7, pp. 583-595.

*      Haron, N.H., Rahman, I.K.A. and Smith, M. (2013), “Management accounting practices and the turnaround process”, Asian Review of Accounting, Vol. 21 No. 2, pp. 100-112.

*      Higgins,  D., Thomas C. Omer,  and Phillips, J.D. (2015). The Influence of a Firm's Business Strategy on its Tax Aggressiveness. Contemporary Accounting Research. 32(2), 674-702.

*      Hoque, Z. (2001). Strategic Management Accounting: Concepts, Processes and Issues, Spiro Press, London.

*      IFAC (2004), Enterprise Governance: Getting The Balance Right, International Federation of Accountants, New York, NY, p. 58.

*      Jensen, M.C. and Meckling, W.H. (1976). “Theory of the firm: managerial behavior, agency costs, and ownership structure”, Journal of Financial Economics, Vol. 3 No. 4, pp. 305-360.

*      Kaplan, R.S. and Norton, D.P. (1992), “The balanced scorecard – measures that drive performance”, Harvard Business Review, January-February, pp. 71-79.

*      Khan, M.M. and Jain, P.K. (2007), Management Accounting: Text, Problems and Causes, Tata McGraw-Hill, New Delhi.

*      Korravee Chai-Amonphaisal, PhaprukeUssahawanitchakit. (2010). Strategic management accounting and corporate performance of Thai-listed companies: a mediating effect of management. Process, International Journal of Strategic Management, vol 10, N. 1, pp. 1-29.

*      Manurung Elizabeth Tiur, KosasihElsje. (2013). " The Implementation of SMEs Sector’s Strategic Management Accounting to Win The Local Competition Relating to Facing Global Business Competition", IBEA, International Conference on Business, Economics, and Accounting, pp. 1- 8.

*      Mohamed, A.A. and Jones, T. (2014), “Relationship between strategic management accounting techniques and profitability – a proposed model”, Measuring Business Excellence, Vol. 18 No. 3, pp. 1-22.

*      Pavlatos, O. (2015), “An empirical investigation of strategic management accounting in hotels”, International Journal of Contemporary Hospitality Management, Vol. 27 No. 5, pp. 756-767.

*      Roslender, R. and Hart, S.J. (2002), “Integrating management accounting and marketing in the pursuit of competitive advantage: the case for strategic management accounting”, Critical Perspectives on Accounting, Vol. 13 No. 2, pp. 255-277.

*      Shah, H., Malik, A. and Malik, M.S. (2011), “Strategic management accounting – a messiah for management accounting”, Australian Journal of Business and Management Research, Vol. 1 No. 4, pp. 1-7.

*      Simmonds, K. (1981), “Strategic management accounting”, Management Accounting, Vol. 59, pp. 26-29.

*      Teerachai Arunruangsirilert Supasith Chonglerttham . (2017)." Effect of corporate governance characteristics on strategic management accounting in Thailand ", Asian Review of Accounting, Vol. 25 Iss 1 pp. 85 – 105.

*      Vafeas, N, (1999), Board meeting frequency and firm performance,Journal of Financial Economics, 53: 113-142.

*      Wickramasinghe, D. and Alawattage, C. (2007), Management Accounting Change: Approaches and Perspectives/Danture Wickramasinghe and Chandana Alawattage, Routledge, New York, NY.

*      Wilson, R.M.S. (1995), “Strategic management accounting”, in David Ashton, T.H. and Scapens, R.W. (Eds), Issues in Management Accounting, 2nd ed., Chapter 8, Prentice Hall, London, pp. 159-190