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Investigating the factors affecting the use of financial information in managerial decision-making in governmental organizations

Author

Listed:
  • Mortaza Ghabdian

    (Department of Management, Financial Management, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran,)

  • Yosef Ramezani

    (Department of Management, Human Resources, Neyshabur Branch, Neyshabur, Iran.)

Abstract

This study aims to investigate the factors affecting the usefulness of financial information in intra-organizational decision-making. The statistical population comprises all the auditors of the supreme audit court and the selected sample includes 118 auditors. This research is a descriptive-survey study and for data collection, questionnaire was used. The research findings with a structural equation modeling approach demonstrated that there is a significant positive relationship between the external and internal factors of the organization and usefulness of financial information in managerial decision-making. Also, findings revealed that of the organization’s external factors, the role of the media and public networks has the greatest impact on the usefulness of financial information in intra-organizational decision-making and out of the organization’s internal factors, the existence of sufficient computational tools has the greatest effect on the usefulness of financial information in intra-organizational decision-making. Besides, individual factors compared to organizational factors have more influence on the usefulness of financial information.

Suggested Citation

  • Mortaza Ghabdian & Yosef Ramezani, 2018. "Investigating the factors affecting the use of financial information in managerial decision-making in governmental organizations," International Review of Management and Marketing, Econjournals, vol. 8(1), pages 126-135.
    • Handle: RePEc:eco:journ3:2018-01-20
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    References listed on IDEAS

    as
    1. Chenhall, Robert H., 2003. "Management control systems design within its organizational context: findings from contingency-based research and directions for the future," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 127-168.
    2. Toomas Haldma & Kertu Laats, 2002. "Influencing Contingencies On Management Accounting Practices In Estonian Manufacturing Companies," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 13, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Nogueira, Sónia Paula S. & Jorge, Susana Margarida F., 2016. "Explanatory factors for the use of the financial report in decision-making: Evidence from Local Government in Portugal," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(2), pages 216-226.
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    More about this item

    Keywords

    Usefulness of financial information; extra-organizational factors; intra-organizational factors; managerial decision-making; supreme audit court.;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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