Succeeding in Managerial Accounting, Part 2: A Structural Equations Analysis
Accounting, Organizations, and Society
Posted: 16 Feb 2000
In this paper, we explore the relationship among rank, knowledge, ability, experience, and success in managerial accounting practice. More specifically, we investigate the predictive validity of the Libby & Luft (L&L) model (1993) of the determinants of judgment performance. We implement and test the L & L model using structural equations applied to the performance evaluations of 2,941 practicing managerial accountants. Our results indicate rank-based differences in the determinants of success of staff-level versus senior and manager-level accountants. Specifically, technical managerial accounting knowledge, ability, and experience predict success for junior managerial accountants; industry knowledge, tacit managerial knowledge (TMK) and experience predict success for seniors; while, industry and TMK predict success for managers. The results generally support the validity of the L& L model in predicting the success of practicing managerial accountants.
Note: This is a description of the paper and not the actual abstract.
JEL Classification: J31, J44, L84, M12, M40, M46
Suggested Citation: Suggested Citation