Succeeding in Managerial Accounting, Part 2: A Structural Equations Analysis

Accounting, Organizations, and Society

Posted: 16 Feb 2000

See all articles by Dan N. Stone

Dan N. Stone

University of Kentucky - Von Allmen School of Accountancy

Benson Wier

Virginia Commonwealth University

James E. Hunton

Bentley University - Department of Accountancy; Erasmus University

Abstract

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

Stone, Dan N. and Wier, Benson and Hunton, James E., Succeeding in Managerial Accounting, Part 2: A Structural Equations Analysis. Accounting, Organizations, and Society. Available at SSRN: https://ssrn.com/abstract=204256

Dan N. Stone (Contact Author)

University of Kentucky - Von Allmen School of Accountancy ( email )

Lexington, KY 40506
United States
859-257-3043 (Phone)
859-257-3654 (Fax)

Benson Wier

Virginia Commonwealth University ( email )

School of Business 301 W. Main St.
Richmond, VA 23284
United States
804-828-7162 (Phone)
804-828-8884 (Fax)

James E. Hunton

Bentley University - Department of Accountancy ( email )

175 Forest Street
Waltham, MA 02452
United States

Erasmus University

Rotterdam
Netherlands

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