Modelling determinants of a cost accounting system: Mixed methodology and logistic regression

Mixed methodology is becoming increasingly significant in several scientific research areas. Empirical management and cost accounting research attempt to integrate quantitative and qualitative methods and combine theories generally associated with incommensurable paradigms. Furthermore, mixed methods research could provide a more comprehensive understanding of cost accounting research by establishing a prevailing means of validation of research findings. However, this has also been criticised considerably in the social science aspects especially due to failings of presenting a vibrant philosophical foundation to produce valid knowledge statements and also in circumstances of a concept of triangulation is emerged as a mean of validation. As a methodological note on the analytical aspects, logistic regression model has been used in various studies of management and cost accounting research. However, there are criticisms over the presentations of the logistic model which has led to a misinterpretation of research findings. As per the usage of these methodologies in various contexts are concerned, scholars in management and cost accounting have argued that Sri Lanka seems to be more profound in methodology but the methodology should be determined by the research question and it is not given. Sri Lanka is perceived to be an empirical laboratory for management research as management practices in this country are different or distinctive. Hence, reporting on distinctiveness of practices will be very appealing to international audiences. The purpose of this paper is to illustrate how the mixed methodology has been adopted and how the logistic regression model was used to model the determinants for the demand for cost accounting systems in Sri Lanka as a developing country. A cost accounting system (CAS) has been used for decision support, financial planning and control as well. Empirical evidence has shown that different factors have influenced on demand for CAS but again has shown mixed results and there is a lack of evidence from the developing country or emerging economy context as well. Hence, this research study attempts at bridging the gap between the literatures by modelling the determinants for the demand for a CAS within an emerging economy such as Sri Lanka. Logistic regression model has identified that the market competition, size, desire and need of the management, quality of the report generation and changing dynamics as significant predictors for the demand for a CAS. Thematic analysis has been adopted to analyse the qualitative data gathered to achieve an in-depth understanding of CAS. This paper allows understanding how mixed methods research is conceptualised across these studies. The findings show a range of perceived strengths and weaknesses/ limitations identified and opportunities and risks attributed to this approach as well

Audit sampling strategies and frauds: an evidence from Africa

Purpose: This paper aims to investigate how professionals such as accountants, auditors, senior civil servants and academics perceive the use of audit sampling strategies adopted by professionals to increase detection rates of frauds and corruption within the public sector in Africa. It also examines the respondents’ perceived values regarding the reasons for committing frauds, types of fraud and corruption, as well as the aspects of audit sampling strategies to tackle frauds. Design/methodology/approach: This research uses non-parametric statistics and logistic regression to analyse the respondents’ opinions regarding the state of frauds and corruption in Africa (particularly in Tunisia and non-Tunisia countries), the common factors behind people committing frauds, including the types of frauds and corruption and the respondents’ opinions on the use of audit sampling strategies (non-random and random) to examine the instances of frauds and corruption. Findings: The findings indicate that most respondents prefer to use non-probabilistic audit sampling rather than more robust sampling strategies such as random sampling and systematic random sampling to detect frauds and corruption. In addition, although there are some minor statistical differences between the countries in terms of the respondents’ perceived values on skimming fraud and on the use of audit random sampling to tackle rampant corruption in Africa, the overall findings indicate that opinions do not significantly differ between the respondents from Tunisia and other countries in terms of the types of fraud, the reasons for committing fraud and the auditing sampling strategies used to investigate the frauds. Research limitations/implications: This research serves as an analytical exploratory study to instigate further audit sampling research to combat rampant fraud and corruption in the public sector in Africa. Originality/value: There are few or non-existent studies investigating the application of audit sampling strategies in Africa countries, particularly to examine the application of audit random sampling and audit non-random sampling strategies to detect fraudulent activities and corruption. Correspondingly, this research carries strategic implications for accountants and auditors to successfully detect fraudulent activities and corruption in Africa

Exploring the evolvement of environmental management accounting practices for achieving SMEs' sustainability in an emerging economy

It has been recognised that the information derived from management accounting practices (MAPs) is invaluable for the strategic decision-making processes of businesses and thereby enables better environmental performance. Businesses have recognised MAPs as a viable approach to drive their businesses towards sustainability. Hence, this study was carried out in an emerging economy i.e., Sri Lanka where the aim of this research is to explore the application of MAPs within small-medium enterprises (SMEs) for managing ecological issues. Two qualitative studies, netnography followed by semi structured interviews, were implemented to obtain an in-depth perspective of the application of MAPs and their impact of managing ecological issues of SMEs. The findings imply that although MAPs assist SMEs for their internal control in terms of ecological costing, there remain some challenges for SMEs especially regarding waste management owing to other barriers

Triggers for and barriers to the adoption of environmental management practices by small and medium‐sized enterprises: a critical review

The current literature lacks an integrated and holistic understanding of what drives and inhibits the environmental management practices (EMPs) of small and medium-sized enterprises (SMEs), despite the large number of studies carried out in the area. In order to offer a nuanced understanding of the existing inventory of reported works on SMEs, this study provides a systematic literature review. Based on three theories (i.e., institutional isomorphism, the resource-based view and contingency), the study uses descriptive and thematic content analytical tools to find triggers for (i.e., external and internal) and barriers to the adoption of EMPs by SMEs. The analysis shows that both coercive pressures (especially legislation and customers' demands) and internal resource capabilities serve as significant triggers for the adoption of EMPs by SMEs. This study also finds internal organisational barriers, including lack of resources, acting as the main barriers. Both descriptive and thematic content analysis suggests several avenues for future research in this area

The application of management accounting practices towards the sustainable development of family businesses: a critical review

The purpose of this study is to comprehensively review the extant literature on the application of management accounting practices (MAPs) to the sustainable development of family businesses (FBs), and to identify future research avenues. Academic interest in the field of MAPs in family businesses as well as the concept of sustainable development has been growing rapidly due to the fast-moving business landscape associated with environmental dynamism, particularly over the past two decades. Consequently, some authors claim that the heterogeneous characteristics of FBs apparently lead to a lower degree of information asymmetry, and that this, in-turn, may weaken the need for MAPs. On the other hand, some studies emphasise that the distinctive conflicts of interest in FBs and some contingent factors (for example, intense competition in the industry) are triggers for the adoption of MAPs by FBs. Given these mixed research outcomes and the absence of a comprehensive study that demonstrates the state-of-the-art in this research stream, this paper aims to review previously reported key works to thoroughly investigate the above mentioned factors with a view to exploring the existing knowledge gap. The holistic conclusion arrived at by the study points to the fact that there seems to have a considerable impact of family involvement on business performance achieved through the application of MAPs. Nonetheless, the impact of certain heterogeneous characteristics of FBs on the application of environmental management accounting (EMA) practices, which is a sub-stream of MAPs, is yet to be explored

The resistance in management accounting practices towards a neoliberal economy

Purpose – The purpose of this study is to investigate the resistance in management accounting practices (MAPs) in a developing economy in the manufacturing and service sectors in Vietnam. Design/methodology/approach – Data collection was carried out using survey questionnaires in Vietnamese language. The questionnaires were distributed to selected respondents from the manufacturing and service organisations in Vietnam. Textual structuralism was used to analyse different categories of data, i.e. survey questionnaires, photos and qualitative texts obtained from the literature. Findings –The findings indicate that the usage of MAPs is more prevalent in the manufacturing sector than in the service sector. In addition, various traditional and contemporary MAPs are being used concurrently in Vietnam, which challenges the classical twofold dichotomy between mere socialism and mere neoliberalism. Research limitations/implications – The textual and photographic structuralism is used in this study to analyse primary data (geography and society and time) in a static setting. Hence, it does not analyse the research phenomena in a dynamic equilibrium setting to view the development of the research phenomena over time. Further research could expand data collection to include longitudinal and dynamic settings. Practical implications – MAPs can be implemented in economic systems ranging from command to capitalist systems. Although most countries in the world follow a mixed economic system, specific MAPs could be designed for a transitional economic system such as that of Vietnam. This affects both theorists and practitioners in Vietnam applying sustainable MAPs to boost a country’s competitiveness during transition. Originality/value – This study expands understanding of the conformity of MAPs in relation to economic systems under the Communist Party of Vietnam (CPV) – the ruling party of the Socialist Republic of Vietnam. Understanding the differences in the way these MAPs are utilised constitutes an essential area of the accounting discipline to advance MAPs in Vietnamese enterprises and progress theoretical development of sustainable MAPs

Does Vice-Chancellor power determine UK University efficiency performance?

Despite recent evidence linking top management power with firm performance, our understanding about the interaction effect between power and personal characteristics of the top manager is still very limited. Building on and extending the Upper Echelons and Power literature, we address the empirical question: How, i.e. UK Vice- Chancellors’ (VC) power influences the efficiency of UK universities? We use panel data from 126 UK universities from 2016 to 2020 to test our hypotheses. Our findings demonstrate that VC power, and its constituents affect efficiency. VCs with more power tend to improve the efficiency of the universities they run respectively. Specifically, VC in receipt of higher compensation and honour medals tend to improve the efficiency of the university they run. In contrast, if they are Oxbridge graduate and have long tenure, the efficiency will decline. More importantly, the interaction results show that a high-power VC who is not from Asian or minority background is shown to improve efficiency but a high-power VC who is a female will drive up efficiency. Our analyses reveal that a VC’s power and the constituents to VC power play a crucial role in determining the efficiency level of the university. Furthermore, origin and gender of a VC will moderate the VC’s power in influencing the efficiency level

Accounting and Sustainable Development: A Case of Poverty Reduction in an Emerging Economy

Accounting has been widely used in both public and private sectors across the globe for the sustainable development of corporates as well as economies. However, in the recent past, there has been a wide discussion on poverty reduction and public sector accounting reforms especially in emerging economies in order to enhance the transparency in government expenditure, auditing and accountability as well. Since the governments are responsible on providing essential public services which have a greater impact on poverty, adequate measures in place to monitor the spending is vital for any country with an emerging economy. Moreover, according to the United Nations Millennium Development goals (MDGs) especially on reducing poverty, governments may require to recruit more employees for public sector to fill the gaps in the service in many essential areas such as education, health, and agriculture. Additionally, the recent past financial crisis and recession also have impacted on poverty reduction programs within emerging economies especially which are prone to corruption, fraud, and lack of transparency on government expenditures as well. Due to these various reasons, some emerging economies such as that of Sri Lanka are struggling to minimize the huge budget deficit of the government while leaving with less money for poverty reduction within the country as well. Therefore, unless these gaps are filled, many people in emerging economies will continue to live in poverty (Tridico 2009)