Determinants Of Integrated Performance Measurement Systems Usage: An Empirical Study

Performance management literature has been advocating the balanced use of non-financial measures alongside traditional financial measures, possibly within integrated performance measurement systems, since the early 1990’s. The purpose of this paper is to explore how contextual factors (such as company size, industry, and market position), business objectives and knowledge about contemporary management tools influence the decision to implement Balanced Scorecard or similar integrated performance management systems. We tested our research propositions regarding the influence of these factors by using survey data and a logistic regression model. The study is based on a survey conducted in 2008 on a sample of 323 Slovenian companies. The sample consists of large, medium, and small firms from different industrial sectors, including manufacturing and service. Overall, our results confirm contextual factors, such as company size and industry, and knowledge about management tools as most important determinants of integrated performance measurement systems usage. Although market position and business objectives also receive some support for their influence, the results are generally weaker and more ambiguous

Loss of control vs. risk reduction: decision factors for hiring non-family CFOs in family firms

Objectives: We examine decision factors of family firm owners for hiring a non-family Chief Financial Officer (CFO). We explore the perceptions of family firm owners towards external managers by analyzing how their family-specific and company-specific goals relate to the employment of a non-family CFO. Furthermore, we analyze the consequences of hiring a non-family CFO on financial policies such as the use of strategic financial plans and initiatives to improve relationships with external capital providers. Prior work: Prior research has acknowledged that the attitude to external managers is a major concern for family firms because of potential problems due to a separation of ownership and management. However, it was shown that non-family CFOs positively influence the operational performance of privately-held family firms. Little knowledge exists to date to explicitly link the decision to hire an external CFO to the goals of family firm owners. Approach: Our study is based on a survey of 237 small- and medium-sized privately-held German family firms in 2007. We use logistic regression analysis to test our theory-driven hypotheses on the relationship between family-specific as well as company-specific goals of the family and the employment of a non-family CFO. Furthermore, we use OLS and logistic regression analysis to analyze hypotheses on how non-family CFOs influence financial policies. Results: The results suggest that family firm owners are reluctant to hire non-family CFOs because of agency type of problems. They decide against an external CFO when their goal of independence and control is high. Furthermore, they do not seem to trust external managers to act in accordance to their goal of enterprise value growth. However, they seem to realize that non-family CFOs are likely to decrease financial risk through the provision of additional capabilities. Non-family CFOs are shown to influence financial policies and, thereby, to bring in value creating resources. Implications: Family firm owners can use the results to understand the relevant factors they should consider when employing an external CFO. In particular, they should focus on establishing incentive structures for external managers to follow goals of the family. Candidates for non-family CFOs are able to better comprehend the underlying objectives of family firm owners in the hiring decision. Value: Our findings are relevant to further disentangle the relationship between external managers and family firm owners. By applying both the agency theory and the resource based view, we are able to offer explanations for and against the decision to hire non-family CFOs in family firms. --CFO,family firms,financial policy,entrepreneurial finance,corporate governance

Multi-stakeholder involvement and urban green space performance

This study aimed to identify the main factors influencing urban green space performance. Therefore, a conceptual framework on the relations of multi-stakeholder involvement (MSI) and the performance was conducted by a mixed-method approach. The study covered all urban green space projects (UGSPs) published in international journals as its population which were obtained from three main databases: ISI Web of Knowledge, Scopus and Picarta. Using a few combinations of keywords, 29 relevant journals were identified, which included 42 UGSPs as the main units of analysis in this study. A content analysis was used to determine the contribution of MSI to the performance of urban green space. The main internal (state, private, society, planning/design, implementation, maintenance, input for management, and financial support) and external (regulation, good leadership and financial support) MSI indicators were further identified. The findings showed that the main indicators that significantly influence urban green space performance are 'state, society, implementation and regulation'. The study concluded that the state plays a critical role in the UGSPs' performance although it is not the only actor. The influential role of the state and society should also be considered since most of green space projects are non-profit oriented. 'Society' involvement also contributes to the performance and 'regulation' is also needed as a legal basis for green space development and management. To validate the conceptual framework and mixed-method approach developed here, it is recommended that more studies should be conducted to compare the relationship of the MSI and the UGSPs' performance in different categories

The effects of management accounting practices on firm performance: antecedent factors and the role of managerial functions / Ahmed Abdullah Saad Al-Dhubaibi

Management accounting practice (MAP) has been the subject of debate by researchers and practitioners for years. MAP relevance and diffusion issues have been the center of the debate. This study aims to contribute in this field of knowledge. Based on the contingency theory, this study attempts to uncover a number of contingent factors that might explain MAP variation between firms and industries. Furthermore, it seeks to examine the impact of various levels of MAP advancement on organizational performance. In pursuit of this objective, this study contributes to management accounting research by explaining how MAP interacts with other organizational activities to influence financial and non-financial performance. Data was collected through a questionnaire survey that was sent to 430 firms in Yemen operating in several economic sectors such as manufacturing, natural resources extraction, banking, services and others. The usable questionnaires received and used in the data analysis were 158, indicating a response rate of 37%. The structural equation modeling, in addition to other statistical tests were used for data analysis. The International Federation of Accountants (IFAC) framework for the management accounting stages of evolution was employed to classify the level of MAP advancement. The results of this study showed that competition level, structure type (level of delegation), ownership of firms, industry type, and CFO education level, significantly explain the variation of the levels of MAP advancement between firms in Yemen. The results also indicated an insignificant influence of the size of firm on MAP. A higher degree of competition, more delegation, foreign ownership, and highly educated CFOs proved to cause firms to adopt more sophisticated MAP. The industry type also plays a significant role in the determination of the level of MAP advancement. Interestingly, the financial and banking sector, followed by the natural resources extracting firms, demonstrated a higher level of MAP advancement compared to other economic sectors. Furthermore, the results provide evidence on the positive impact of advanced MAP on both financial and non-financial performance. It was evident that management control system effectiveness mediates the relationship between the level of MAP advancement and both financial and non-financial performance. Moreover, decision-making supportiveness, which was developed through this study for the first time, mediates the relationship between the level of MAP advancement and financial performance. The positive effect of advanced MAP on management control system effectiveness and decision-making supportiveness and subsequently their positive effect on organizational performance, are the mechanisms that provide obvious explanations of how MAP influences organizational performance. Finally, results from this study provide explicit evidence for the interaction between MAP and Levers of Control (LOC), namely: beliefs, boundary, diagnostic, and interactive systems in their impact on financial and non-financial performance. Results showed that advanced MAP reinforces the effect of the levers of control systems on financial and non-financial performance. These results thus improve our understanding of why some firms invest in upgrading their management accounting systems and target the best practice, while others tend to keep using the traditional management accounting tools. In addition, these results confirm the relevance of advanced management accounting techniques and assist in recognizing the way advanced MAP could improve organizational performance

Non-financial shareholder activism: A process model for influencing corporate environmental and social performance

Shareholders have become increasingly active in endeavouring to influence companies’ environmental and social practices. In comparison with the mature field of financially motivated shareholder activism, limited enquiries have been carried out on its non-financial counterparts. This paper synthesizes the knowledge base through a review of the academic literature, exploring shareholder activism intended to affect corporate environmental and social performance. Theoretical perspectives appropriate to this phenomenon are critically appraised: in particular, insights from social movement theory, Hirschman's theory of exit, voice and loyalty and stakeholder salience theory, as well as the roles of signalling and symbolic management actions. Data from the literature are organized into a process model of non-financial shareholder influence. Underpinned by the influencing context, this conceptualization centres on three primary shareholder interventions: divestment, dialogue and shareholder proposals. These interventions are enabled through a range of actors and tools: coalitions, non-governmental organizations, codes and indices, the media and regulators. The interaction between interventions and the enabling actors and tools helps to determine managers’ perceptions of shareholder salience. These perceptions subsequently shape the organizational behaviours that affect companies’ symbolic and substantive environmental and social performance. An agenda to direct future research in this burgeoning field is articulated

The role of GoJek and Grab sharing economy platforms and management accounting systems usage on performance of MSMEs during covid-19 pandemic: Evidence from Indonesia

This study investigates the influence of MSME actors' characteristics on the use of sharing economy, management accounting system, and financial performance during the Covid-19 Pandemic. Based on a questionnaire survey obtained from 167 respondents, we hypothesize and find that age and non-formal education have a positive effect on the use of the sharing economy. MSMEs that are managed by actors at a young age tend to use the sharing economy to maintain their business. In addition, MSMEs’ leaders that receive non-formal education acquire additional business knowledge encouraging them to use the sharing economy. Furthermore, the use of the sharing economy has a positive effect on Managemen Accounting Systems usage. Finally, Management Accounting Systems usage has a positive effect on the financial performance. The results of this study provide useful insights into the design of effective MSMEs' mentoring systems and support the Indonesian government program toward empowering MSMEs

Organizational Resources, Innovation and Performance of Insurance Companies in Kenya

In spite of a growing body of literature on firm performance, explaining why firms in the same industry and markets differ in their performance remains a fundamental question within strategic management field. While some researchers have attributed these differences to the resources owned and controlled by firms, others have argued that resources alone do not explain the differences in the firms’ performance. This debate still continues, hence providing room for further contributions. Underpinned by the postulations of resource based theory, dynamic capabilities theory and knowledge based theory; this study contributes to the debate. The study advances the proposition that resources influence performance through the intervening effect of innovation. The proposition is empirically tested using both primary and secondary data from 46 Insurance Companies in Kenya. The results reveal that both tangible and intangible resources have a statistically significant direct influence on non-financial performance despite mixed findings as regards to the independent effects of resources on various firm performance indicators. Innovation was found to have a statistically significant intervening influence on the relationship between resources and non-financial performance. The findings offer some support for the anchoring theories as well as partial support to previous similar studies. In spite of the inherent limitations, the study advances the frontiers of knowledge in confirming the anchoring theories while providing ground for policy direction and managerial practice.Key Words: Organizational Resources, Innovation, Firm Performance, InsuranceCompanie

Academic success and well-being of college students: Financial behaviors matter (TCAI Report)

College students are at a pivotal time in their lives as they face financial independence and responsible decisionmaking. In moving from dependence to independence, they will chart a course with far-reaching consequences for their future happiness and security. The methods by which college students form desirable financial habits has been largely shadowed in supposition. Because the process is not yet understood, but is of tantamount importance to the future of young people, further study is imperative. Universities have a unique opportunity to influence the development of sound fiscal practices because they combine a pivotal time frame, an educational setting, and a population with newly emerging responsibility for their financial affairs. Further, young adults who are financially responsible as college students are more likely to become well-rounded, happier, and more successful alumni. The following report examines the financial behavior of undergraduate students at The University of Arizona. Specifically, the study examines cash management, credit management, savings, and risky credit use. We are interested in what elements influence financial behavior, and whether responsible financial habits affect students’ quality of life, including financial satisfaction, physical and mental health, academic satisfaction and performance, and life satisfaction in general. A total of 781 undergraduate students responded to our online survey. In short, we found as predicted, that sound financial decisions and practices are undoubtedly linked to a better life, in a variety of ways. The importance, then, of developing healthy financial habits cannot be overstated. As previously stated, colleges are in a unique position to assist this process, and in fact, we believe they have a responsibility to students as part of an overall educational framework. Specifically, our study found: Undergraduate students manage cash better than credit and savings. Students who have a positive attitude about cash management, find it easy to do, and feel a sense of accomplishment do better with cash management. Upper-class students, particularly seniors, demonstrate a surprisingly more careless attitude with regard to credit management. Being a first-generation college student, being financially independent, having a higher personal income, taking fewer credit hours, and living off campus also result in a riskier attitude toward credit use. Negative attitudes, spending less time on studies and more time on the job, and money management also seem to lead to unwise credit use. When it comes to saving money, upper-class students do worse than their lower division counterparts. Others who demonstrate poor saving habits are non-business majors, off-campus students, and those receiving financial aid. Again, students with negative attitudes and less financial knowledge are less likely to save money. Not surprisingly, our study shows that parents are important role models in encouraging responsible financial behavior. Parental support and advice are key, as are having parents who are married, more highly educated and who own a home. The support of college peers is also important, influencing students to develop good financial behaviors. In addition to its own rewards, responsible financial behavior leads to a better life. Performing desirable financial behaviors is associated with greater financial satisfaction, better physical and mental health, and higher grades. These findings have important implications for financial professionals, educators, campus administrators, and policymakers concerned about the well-being of college students. Promoting positive financial habits, according to this report, is likely to improve the overall well-being of college students, in addition to helping them meet their academic goals. Credit management and savings courses may be needed for undergraduates, especially upper-division students (who have worse financial behaviors than their lower-division counterparts). Timing is critical because seniors will soon be entering the job market and facing the financial decisions of independent living. Because it is a key component of students’ financial development, parental involvement should be supported and encouraged. In addition, peer education should be fostered, with colleges creating opportunities for students to learn from each other (especially in the areas of credit and savings). Special attention should be paid to financially at-risk students who are apt to engage in risky credit behaviors, with programs designed specifically for them

Influence of financial literacy training on the performance of village savings and loan associations supported by NGO’s in Kenya: a case study of VSLA’s in Kwale county

2018 Conference paper submitted at Strathmore University, Nairobi kenya. Thematic area (Business Innovation and Management)Studies in Kenya largely indicate that VSLA’s have been adopted as a strategy to alleviate poverty in non-formal settlements like the slums in Mathare, Kibera, Korogocho and Kianduti villages or slums for more than 10 years now. Despite these gains there is very scanty information available on the financial literacy of the members of these groups and the impact it has on their performance. Establishment of Voluntary Savings and lending Associations has a had a great impact in ensuring there is economic empowerment of members and groups in the villages through donor fundings.It is from this background that this research intended to determine if there is an influence of financial literacy trainings on the financial performance of village Savings and Loan Associations (VSLA’s) projects in supported by NGO’s in Kenya, a case study of Kwale county. The study was done on the members of the VSLA’s in Kwale County who are registered within the groups in that region. There was a total of 73 participants in the study undertaken. The hypothetical question was to establish if financial knowledge has an impact on the financial performance of the VSLA’s supported by NGO’s in Kenya. The study used stratified sampling method and questionnaires in collecting required information through interviews. The findings showed that there was a strong relationship between financial literacy and financial performance of VSLA’s. this led to a conclusion that there is need to ensure the groups are empowered properly since most of the VSLA that have not been performing well have their members not well trained on financial literacy components such as budgeting, expenditure control and savings.University of Nairobi, Nairobi, Keny