IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2018-01-20.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/irmm/article/download/6052/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/irmm/article/view/6052/pdf
    Download Restriction: no
    ---><---

    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.
    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. Jafar Ojra & Abdullah Promise Opute & Mohammad Mobarak Alsolmi, 2021. "Strategic management accounting and performance implications: a literature review and research agenda," Future Business Journal, Springer, vol. 7(1), pages 1-17, December.
    2. Katia Dangereux & Philippe Chapellier & Fabienne Villesèque-Dubus, 2014. "FROM DIVERSITY OF SMEs’ CHARACTERISTICS TO DIVERSITY OF THEIR MANAGEMENT CONTROL SYSTEM : THE CASE OF AN ELABORATE PURCHASE DASHBOARD [De La Diversite Des Caracteristiques Des Pme A La Diversite De," Post-Print hal-01899657, HAL.
    3. Christoph Endenich & Michael Brandau & Andreas Hoffjan, 2011. "Two Decades of Research on Comparative Management Accounting – Achievements and Future Directions," Australian Accounting Review, CPA Australia, vol. 21(4), pages 365-382, December.
    4. O’Connor, Neale G. & Vera-Muñoz, Sandra C. & Chan, Francis, 2011. "Competitive forces and the importance of management control systems in emerging-economy firms: The moderating effect of international market orientation," Accounting, Organizations and Society, Elsevier, vol. 36(4), pages 246-266.
    5. Rui Pires & Maria-Ceu G. Alves, 2022. "The Impact of Environmental Uncertainty on Accounting Information Relevance and Performance: A Contingency Approach," Economies, MDPI, vol. 10(9), pages 1-15, September.
    6. Ben Hamadi, Z. & Bonache, A.B. & Chapellier, Ph. & Mohammed, A., 2011. "Cultural contingency on the antecedents of the complexity of management accounting systems: Evidence from a meta-analysis of individual data," MPRA Paper 30268, University Library of Munich, Germany.
    7. Franco Cescon & Antonio Costantini & Luca Grassetti, 2019. "Strategic choices and strategic management accounting in large manufacturing firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 605-636, September.
    8. Teerooven Soobaroyen & Bhagtaraj Poorundersing, 2008. "The effectiveness of management accounting systems: Evidence from functional managers in a developing country," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(2), pages 187-219, January.
    9. Abdel-Kader, Magdy & Luther, Robert, 2008. "The impact of firm characteristics on management accounting practices: A UK-based empirical analysis," The British Accounting Review, Elsevier, vol. 40(1), pages 2-27.
    10. Ali Uyar & Cemil Kuzey, 2016. "Contingent Factors, Extent of Budget Use and Performance: A Structural Equation Approach," Australian Accounting Review, CPA Australia, vol. 26(1), pages 91-106, March.
    11. Cadez, Simon & Guilding, Chris, 2008. "An exploratory investigation of an integrated contingency model of strategic management accounting," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 836-863.
    12. Haishi Li & Youxue Jiang & Anam Ashiq & Asma Salman & Mohammad Haseeb & Malik Shahzad Shabbir, 2023. "The role of technological innovation, strategy, firms performance, and firms size and their aggregate impact on organizational structure," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2010-2020, June.
    13. Maiga, Adam S. & Nilsson, Anders & Jacobs, Fred A., 2014. "Assessing the interaction effect of cost control systems and information technology integration on manufacturing plant financial performance," The British Accounting Review, Elsevier, vol. 46(1), pages 77-90.
    14. Tuan Zainun Tuanmat & Malcolm Smith, 2011. "The effects of changes in competition, technology and strategy on organizational performance in small and medium manufacturing companies," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(3), pages 208-220, September.
    15. Ewelina ZARZYCKA & Justyna DOBROSZEK & Cristina CIRCA & Alina ALMASAN, 2017. "The perceived suitability of management accounting information: a contingency based investigation," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(147), pages 395-395.
    16. Federica Palazzi & Massimo Ciambotti & Lorenzo Gelsomini, 2019. "L?adozione dell?Activity-Based Costing nelle PMI: analisi di un caso," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1), pages 97-122.
    17. Adel Elgharbawy & Magdy Abdel-Kader, 2013. "Enterprise governance and value-based management: a theoretical contingency framework," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 99-129, February.
    18. 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.
    19. Hao Shi, 2006. "L'évolution du "calcul économique en équipe" : un processus de légitimation des changements institutionnels en Chine," Working Papers 2006-4, Laboratoire Orléanais de Gestion - université d'Orléans.
    20. Liying He & Kamisah Ismail, 2023. "Do staff capacity and performance-based budgeting improve organisational performance? Empirical evidence from Chinese public universities," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.

    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

    Statistics

    Access and download statistics

    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:eco:journ3:2018-01-20. 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.