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Linkages Among Corporate Governance,Management Accounting Practice And Organizational Performance: Evidence From A Southeast Asian Country

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  • David Han-Min Wang

    (Feng Chia University, Taichung, Taiwan)

  • Quang Linh Huynh

    (Tra Vinh University, Tra Vinh, Vietnam)

Abstract

This paper applies a Difference-in-Difference method and Sobel’s procedure to examine the complex relationships among corporate governance, management accounting practice and organizational performance, and finds out that the organizations with the majority of independent directors and the leadership separation most likely adopt management accounting practices and as a result achieve the most enhanced performance. In contrast, those with the minority of independent directors and the leadership combination least likely adopt management accounting practices, which leads to the least enhanced performance. Furthermore, it also offers evidence on the mediation of adopting management accounting practices in the effect of corporate governance on organizational performance. The findings can help business managers with building effective management accounting systems, which fit their firm’s structures of corporate governance, so that they can achieve the possible best success.

Suggested Citation

  • David Han-Min Wang & Quang Linh Huynh, 2014. "Linkages Among Corporate Governance,Management Accounting Practice And Organizational Performance: Evidence From A Southeast Asian Country," Romanian Economic Business Review, Romanian-American University, vol. 9(1), pages 63-81, March.
    • Handle: RePEc:rau:journl:v:9:y:2014:i:1:p:63-81
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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SP14/REBE-SP14-A6.pdf
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    References listed on IDEAS

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    Cited by:

    1. Quang Linh Huynh, 2019. "Link from Organizational Financial Performance to Reputation: The Role of Board Composition," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 109-117, January.

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