Exploring the Facilitators, Impediments, and Performance Effects of Management Accounting and Controls in Chinese Firms
Posted: 8 May 2007
Date Written: 2007
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
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