Investigating the role of management accounting mediation on the relationship between cost system design and firm performance using structural covariance equations

Subject Areas : Management Accounting

Hadi Saeidi ¹ (Assistant Professor of Accounting, Shirvan Branch, Islamic Azad University, Shirvan, Iran)
Nazgol Tatari ² (Graduate Student of Accounting, Shirvan Branch, Islamic Azad University, Shirvan, Iran.)
Shaban Mohammadi ³ (MSc. Department of Accounting- Hakim Nezami institution of higher education at Quchan , Iran)

Received: 2018-06-13 Accepted : 2018-09-16 Published : 2019-06-22

Keywords: management accounting, Cost System Design, Firm Performance,

Abstract :

The purpose of this study was to investigate the intermediary effect of management accounting methods on the relationship between cost system design and Firm performance. Among the companies admitted to the Tehran Stock Exchange from 2013 to 2016, a random sample of 225 non-financial companies was sent to the questionnaire, 203 of which participated in the survey (90% response rate). After the initial processing, 161 data were used as an example for analysis. In this study, a covariance-based structural equation model was used to examine the relationships between variables. Linearity between variables was also analyzed using its regression analysis OLS done. Cronbach's alpha test was used to test reliability, which is due to the higher Cronbach's alpha of 0.7. Confirmatory factor analysis was used to fit the fittest questionnaire. Results show that there is a meaningful positive relationship between cost design design and management accounting method. There is a significant positive relationship between management accounting and corporate governance practices. Management accounting methods have a mediating role on the relationship between cost system design and Firm performance.

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