The Role of Corporate Governance in the Link between Management Accounting System and Firm Performance
This research attempts to explore the causal relationships among corporate governance structure, the adoption of management accounting systems and firm performance by applying the directed acyclic graph model. Especially, it discusses and uses Sobel’s procedure and the interaction factor to investigate the mediating and moderating roles of corporate governance structure in the association between the adoption of management accounting systems and firm performance, which have been missed in prior studies. The findings reveal statistical evidence on the mediating and moderating roles of corporate governance structure in the influence of adopting management accounting systems in business on firm performance. This research is useful to business managers in their decisions on the adoption of management accounting systems that should fit the corporate governance structure of their firm, which will help them to attain competitive advantages as well as better firm performance.
This work is licensed under a Creative Commons Attribution 3.0 License.
To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.
Copyright © Macrothink Institute ISSN 1946-052X