Experimental test of contingency theory and political economy: development of a model to explain the impact of the main factors of development on the effectiveness of management accounting techniques

Subject Areas : Accounting

Saeed Khodayareyeganeh ¹ , Zahra Pourzamani ² , Azita Jahanshad ³ , RamazanAli Royaei ⁴

1 - Department of Accounting, Science and Research branch, Islamic Azad University, Tehran, Iran.
2 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran and Visiting Professor of Science and Research Branch, Islamic Azad University, Tehran, Iran.
3 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
4 - Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.

Received: 2023-11-22 Accepted : 2024-01-27 Published : 2024-01-27

Keywords: Contingency theory, Development factors, Management accounting techniques, Political economy theory,

Abstract :

Purpose: The purpose of the research is to develop a model to explain the impact of the main factors of development on the efficiency and effectiveness of management accounting techniques based on contingency theory and political economy. Methodology: In this research, to collect economic, social, political and cultural data from the data of international reports and to collect data related to the quality of the internal information environment from the financial statements of all companies in the automotive industry, parts manufacturing, electronic equipment and heavy vehicles in Tehran Stock Exchange is used. The mentioned model was developed through structural equation modeling with PLS software.Findings: The developed model and the results of the research hypothesis test showed that contingent factors including economic, social, political and cultural factors have a significant positive impact on improving the quality of the internal information environment due to the efficiency and effectiveness of management accounting techniques and tools. In between, economic and social factors have the most impact and cultural factors have the least impact.

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