Critical review of the role of accounting in the decision-making process

Allah Karam Salehi

Journal of Islamic Accounting and Business Research, 2022, vol. 15, issue 2, 244-264

Abstract: Purpose - This study aims to investigate the accounting role’s deficiencies in managers’ decision-making processes. Design/methodology/approach - The current research applies a critical review method, which along with a deductive approach – based on a library review of existing sources – examines the underlying causes for the deficiencies of accounting role in the decision-making process of managers; moreover, based on the results obtained, the current study proposes a structural model to explain the issue. Findings - The results exhibit the inadequacies of the accounting role in the decision-making process of managers into three sections: “dilution of financial reporting information content,” “malpractice of accounting information providers” and “managers’ unwillingness to use accounting information.” Practical implications - This research provides a new perspective on critical accounting studies for the accounting profession, policymakers and managers and invites them to examine the roles of accounting information in more depth and breadth. Originality/value - This article is the first study that critically expounds upon the literature on the deficiencies of accounting role in the decision-making process of managers and presents these deficiencies in the form of a structural model from three different perspectives.

Keywords: Accounting and financial information; Decision-making; Descriptive method; Critical review (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:jiabr-12-2021-0310

DOI: 10.1108/JIABR-12-2021-0310

Access Statistics for this article

Journal of Islamic Accounting and Business Research is currently edited by Dr Mohammad Hudaib and Prof Roszaini Haniffa

More articles in Journal of Islamic Accounting and Business Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().