IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v12y2017i10p177.html
   My bibliography  Save this article

Factors Affecting Management Accounting Practices in Malaysia

Author

Listed:
  • Sudhashini Nair
  • Yee Soon Nian

Abstract

Management accounting is the process of preparing management reports and accounts that provide accurate and timely, financial and statistical information to assist in management decision making. It is also known as the process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information to help managers fulfill the organization’s objectives. Management accounting practices are used by organizational managers at various levels and at the same time, it gives managers the freedom of choice as there are no constraints, other than the cost of information collected relative to benefits of improved management decisions. Studies have found that there are factors that may affect management accounting practices. Literature has indicated that factors such as--organization size, intensity of market competition, level of qualification of accounting staff and advanced production technology--may affect management accounting practices. The objective of this research is to study the impact of these factors on management accounting practices in Malaysia. A total of 200 respondents from Klang Valley, Malaysia were involved in the survey using purposive sampling. The results of the study revealed that organization size and advanced production technology have significant relationships with management accounting practices.

Suggested Citation

  • Sudhashini Nair & Yee Soon Nian, 2017. "Factors Affecting Management Accounting Practices in Malaysia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(10), pages 177-177, September.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2017:i:10:p:177
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/69133/38513
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/69133
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Tuan Zainun Tuanmat & Malcolm Smith, 2011. "Changes in management accounting practices in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(3), pages 221-242, September.
    4. David A. Brown & Peter Booth & Francesco Giacobbe, 2004. "Technological and organizational influences on the adoption of activity‐based costing in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 44(3), pages 329-356, November.
    5. 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).
    6. Otley, David T., 1980. "The contingency theory of management accounting: Achievement and prognosis," Accounting, Organizations and Society, Elsevier, vol. 5(4), pages 413-428, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ho Dinh Phi & Ngoc Nguyen Bich & Tung Tran Van & Minh Bui Quang, 2021. "Relationship between Management Accounting and Business Efficiency - the Intermediate Role of Management Efficiency: A Case Study of Small and Medium Enterprises in the Mekong Delta, Vietnam," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 7(4), pages 163-174, 12-2021.

    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. 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.
    2. 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.
    3. 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.
    4. Ahmed Abdel‐Maksoud & Wagdy Abdallah & Mayada Youssef, 2012. "An empirical study of the influence of intensity of competition on the deployment of contemporary management accounting practices and managerial techniques in Egyptian firms," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 28(2), pages 84-97, February.
    5. 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.
    6. Macinati, Manuela S. & Anessi-Pessina, E., 2014. "Management accounting use and financial performance in public health-care organisations: Evidence from the Italian National Health Service," Health Policy, Elsevier, vol. 117(1), pages 98-111.
    7. Jihène Ghorbel, 2015. "Approche Contingente Du Design Du Systeme D'Information Comptable Dans Les Pmi Tunisiennes," Post-Print hal-01188692, HAL.
    8. Lino Cinquini & Paolo Collini & Alessandro Marelli & Andrea Tenucci, 2015. "Change in the relevance of cost information and costing systems: evidence from two Italian surveys," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 557-587, August.
    9. Serge Valant Gandja & Ginette Polienne Ipoumb, 2016. "Contingences structurelles et pratiques comptables des PME dans une économie africaine en développement : le cas du Cameroun," Post-Print hal-01856809, HAL.
    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. Jihene Ghorbel, 2019. "A Study of Contingency Factors of Accounting Information System Design in Tunisian SMIs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 74-103, March.
    12. Al-Sayed, Mahmoud & Dugdale, David, 2016. "Activity-based innovations in the UK manufacturing sector: Extent, adoption process patterns and contingency factors," The British Accounting Review, Elsevier, vol. 48(1), pages 38-58.
    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. 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.
    15. Bhimani, Alnoor & Sivabalan, Prabhu & Soonawalla, Kazbi, 2018. "A study of the linkages between rolling budget forms, uncertainty and strategy," The British Accounting Review, Elsevier, vol. 50(3), pages 306-323.
    16. Silvia Macchia, 2021. "Are we ready to change? A case study of Management Accounting Change (MAC) in an Italian Co-operative," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 1), pages 141-164.
    17. Jihene Ghorbel, 2016. "The Relationship between the Profile of Manager and Management Accounting Practices in Tunisian SMIs," 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(1), pages 61-72, January.
    18. Ionel Bostan & Aliona Bîrcă & Viorel Țurcanu & Christiana Brigitte Sandu, 2018. "Systemic Approach to Management Control through Determining Factors," JRFM, MDPI, vol. 11(4), pages 1-20, October.
    19. Kanogporn Suranatthakul & Supaporn Dokmaithong & Ruankwan Intanon & Warawit Phetruen & Nuatip Sumkaew, 2020. "Modern Management Accounting Practices for Large Manufacturing Enterprise in Lower Northern Provinces Group I Thailand," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 9(1), pages 24-28.
    20. Sophie Hoozée & Falconer Mitchell, 2018. "Who Influences the Design of Management Accounting Systems? An Exploratory Study," Australian Accounting Review, CPA Australia, vol. 28(3), pages 374-390, September.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:ijbmjn:v:12:y:2017:i:10:p:177. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.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.