IDEAS home Printed from https://ideas.repec.org/a/bfv/journl/037.html
   My bibliography  Save this article

Implementation of Accrual Accounting in the Ghanaian Public Sector: The Moderating Role of Financial Resources Availability

Author

Listed:
  • Alexander Otopah

    (Eastern Regional Co-ordinating Council, Koforidua, Ghana)

Abstract

Considering the rate of failures in developing economies where accrual accounting has been implemented, the study investigated the factors that could affect the implementation of accrual accounting in Ghana. Drawing on Institutional Theory and Luder’s contingency model for governmental accounting innovation, six hypotheses were postulated. The survey methodology was used with 499 finance officers from public sector institutions being sampled. Data were analyzed using the Explanatory Factor Analysis, Confirmatory Factor Analysis, and Structural Equation Model. The results show that instrumental-conceptual use and management support were found to have a significant positive relationship with the implementation of accrual accounting. Input-based competencies were found to have no relationship with the implementation of accrual accounting. The study also found that financial resource availability positively and significantly moderates the relationship between instrumental-conceptual uses, input-based competencies, management support, and implementation of accrual accounting. The findings of the study may imply that the implementation of accrual accounting in Ghana could be achieved if users of accounting information use it for decision-making, and management demonstrates readiness towards the change to accruals by providing significant budgetary allocation to support activities related to the transition to accruals.

Suggested Citation

Handle: RePEc:bfv:journl:037
as

Download full text from publisher

File URL: https://jabr.sbs.edu/vol11/SBS_JABR_Vol11_Art01.pdf
Download Restriction: no
---><---

References listed on IDEAS

as
  1. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
  2. Pawan Adhikari & Frode Mellemvik, 2011. "The rise and fall of accruals: a case of Nepalese central government," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 1(2), pages 123-143, July.
  3. Suhaiza Ismail & Siti Alawiah Siraj & Shahril Baharim, 2018. "Implementation of accrual accounting by Malaysian federal government," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 14(2), pages 234-247, June.
  4. Diamantopoulos, Adamantios & Souchon, Anne L., 1999. "Measuring Export Information Use: Scale Development and Validation," Journal of Business Research, Elsevier, vol. 46(1), pages 1-14, September.
  5. Ciaran Connolly & Noel Hyndman, 2006. "The actual implementation of accruals accounting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 19(2), pages 272-290, March.
  6. Irvine Lapsley & Riccardo Mussari & Gert Paulsson, 2009. "On the Adoption of Accrual Accounting in the Public Sector: A Self-Evident and Problematic Reform," European Accounting Review, Taylor & Francis Journals, vol. 18(4), pages 719-723.
  7. Pawan Adhikari & Levi Gårseth-Nesbakk, 2016. "Implementing public sector accruals in OECD member states: Major issues and challenges," Accounting Forum, Taylor & Francis Journals, vol. 40(2), pages 125-142, June.
  8. Haffar, Mohamed & Al-Karaghouli, Wafi & Irani, Zahir & Djebarni, Ramdane & Gbadamosi, Gbolahan, 2019. "The influence of individual readiness for change dimensions on quality management implementation in Algerian manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 207(C), pages 247-260.
  9. Latifa Hamisi Mbelwa & Pawan Adhikari & Khandakar Shahadat, 2019. "Investigation of the institutional and decision-usefulness factors in the implementation of accrual accounting reforms in the public sector of Tanzania," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 9(3), pages 335-365, June.
  10. Chandrasiri Abeysinghe & Dinushika Samanthi, 2016. "Accrual Basis and Political Interest in Public Sector Accounting. The Case of a Municipal Council in Sri Lanka," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(3), pages 58-68, July.
  11. Marie H. Kavanagh & Lyndal Drennan, 2008. "What skills and attributes does an accounting graduate need? Evidence from student perceptions and employer expectations," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(2), pages 279-300, June.
Full references (including those not matched with items on IDEAS)

Most related items

These are the items that most often cite the same works as this one and are cited by the same works as this one.
  1. Niluthpaul Sarker & Md. Jamil Sharif, 2024. "The Role of Accounting Information System (AIS) in the Public Sector Budgetary Decision-Making Processes: Evidence from Bangladesh," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 14(2), pages 113-130.
  2. Hanane Jafi & Said Youssef, 2021. "Public sector accounting education and training as supportive mechanisms of the ongoing accrual-based accounting reforms," Technium Social Sciences Journal, Technium Science, vol. 25(1), pages 1-8, November.
  3. Grzegorz Bucior & Aleksandra Zurawik, 2022. "The Autonomy of Public Sector Units in the Process of Formulating Accounting Policy – Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 555-581.
  4. Walter Amuko & Stephen W. Kalule & Walter Odongo, 2023. "The relationship between market information and entrepreneurial orientation: the case of smallholder honey producers in Northern Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-17, December.
  5. Elaine Stewart & Ciaran Connolly, 2021. "Recent UK Central Government Accounting Reforms: Claimed Benefits and Experienced Outcomes," Abacus, Accounting Foundation, University of Sydney, vol. 57(3), pages 557-592, September.
  6. M. Rozaidy & A. K. Siti-Nabiha, 2023. "Reconstructing identity and logic through the implementation of accrual accounting in Malaysia: an intra-organisational analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 331-370, March.
  7. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
  8. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
  9. Du Jianguo & Rauf Ibrahim & Peter Lartey Yao & Rupa Jaladi Santosh & Amponsah Clinton Kwabena, 2019. "The Effectiveness of Internal Controls in Rural Community Banks: Evidence from Ghana," Business Management and Strategy, Macrothink Institute, vol. 10(1), pages 202-218, December.
  10. Chahal, Hardeep & Gupta, Mahesh & Lonial, Subhash & Raina, Swati, 2019. "Operational flexibility-entrepreneurial orientation relationship: Effects and consequences," Journal of Business Research, Elsevier, vol. 105(C), pages 154-167.
  11. Avlonitis, George J. & Salavou, Helen E., 2007. "Entrepreneurial orientation of SMEs, product innovativeness, and performance," Journal of Business Research, Elsevier, vol. 60(5), pages 566-575, May.
  12. Robert P. Garrett Jr. & Jeffrey G. Covin, 2015. "Internal Corporate Venture Operations Independence and Performance: A Knowledge–Based Perspective," Entrepreneurship Theory and Practice, , vol. 39(4), pages 763-790, July.
  13. Jean-Philippe Denis & Frank Tannery, 2002. "L'architecture des systèmes de contrôle de la stratégie dans les groupes," Revue Finance Contrôle Stratégie, revues.org, vol. 5(3), pages 69-114, September.
  14. Poduška, Zoran & Nedeljković, Jelena & Nonić, Dragan & Ratknić, Tatjana & Ratknić, Mihailo & Živojinović, Ivana, 2020. "Intrapreneurial climate as momentum for fostering employee innovativeness in public forest enterprises," Forest Policy and Economics, Elsevier, vol. 119(C).
  15. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
  16. Olson, Bradley J. & Bao, Yongjian & Parayitam, Satyanarayana, 2007. "Strategic decision making within Chinese firms: The effects of cognitive diversity and trust on decision outcomes," Journal of World Business, Elsevier, vol. 42(1), pages 35-46, March.
  17. Xin Liu & Lin Zhang & Abhinav Gupta & Xiaoming Zheng & Changqi Wu, 2022. "Upper echelons and intra‐organizational learning: How executive narcissism affects knowledge transfer among business units," Strategic Management Journal, Wiley Blackwell, vol. 43(11), pages 2351-2381, November.
  18. Susan O'Shea, 2017. "Characteristics and Skills Necessary in Accountancy," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 1-22, December.
  19. Ieda Margarete Oro & Carlos Eduardo Facin Lavarda, 2017. "Interaction Between Strategy and Organizational Performance: The Influence of Family Management," Brazilian Business Review, Fucape Business School, vol. 14(5), pages 493-509, September.
  20. Robert Simons, 1988. "Analysis of the organizational characteristics related to tight budget goals," Contemporary Accounting Research, John Wiley & Sons, vol. 5(1), pages 267-283, September.

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfv:journl:037. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Milos Petkovic, Ph.D (email available below). General contact details of provider: https://edirc.repec.org/data/sbsklch.html .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.