Exploring the Facilitators, Impediments, and Performance Effects of Management Accounting and Controls in Chinese Firms

Posted: 8 May 2007

See all articles by Rong-Ruey Duh

Rong-Ruey Duh

National Taiwan University - Department of Accounting

Jason Zezhong Xiao

Cardiff Business School, Cardiff University

Chee W. Chow

San Diego State University

Date Written: 2007

Abstract

This study explores the current use of management accounting and controls (MACs) by Chinese firms, as well as the facilitators, impediments, and performance effects of such usage. Data on 219 listed Chinese firms are obtained from a survey, supplemented by the firms' publicly available financial reports. On average, the sample firms have at least moderate use of 12 specific MAC techniques, including ones that are of relatively recent vintage (e.g., economic value-based performance measures, target costing). However, there is substantial variation across firms in the use of each technique. The extent of MAC usage is positively associated with several firm attributes (e.g., extent of foreign ownership, pursuit of a build strategy, and top management support) as well as characteristics of the environment (e.g., industry and competition). There also is a positive association between usage of selected MAC techniques and firm performance.

Keywords: Chinese firms, management accounting and controls, firm performance

JEL Classification: M40, M46, M47

Suggested Citation

Duh, Rong-Ruey and Xiao, Jason Zezhong and Chow, Chee W., Exploring the Facilitators, Impediments, and Performance Effects of Management Accounting and Controls in Chinese Firms (2007). Available at SSRN: https://ssrn.com/abstract=984642

Rong-Ruey Duh (Contact Author)

National Taiwan University - Department of Accounting ( email )

No. 1, Sec. 4, Roosevelt Road
Taipei, Taiwan 106
Taiwan
8862-23630231 ext 2977 (Phone)
8862-23637440 (Fax)

Jason Zezhong Xiao

Cardiff Business School, Cardiff University ( email )

Aberconway building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

Chee W. Chow

San Diego State University ( email )

San Diego, CA 92182-0763
United States

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