LINKAGES AMONG CORPORATE GOVERNANCE,MANAGEMENT ACCOUNTING PRACTICE AND ORGANIZATIONAL PERFORMANCE: EVIDENCE FROM A SOUTHEAST ASIAN COUNTRY

David Han-Min Wang () and Quang Linh Huynh ()
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David Han-Min Wang: Feng Chia University, Taichung, Taiwan
Quang Linh Huynh: Tra Vinh University, Tra Vinh, Vietnam

Romanian Economic Business Review, 2014, vol. 9, issue 1, 63-81

Abstract: This paper applies a Difference-in-Difference method and Sobel’s procedure to examine the complex relationships among corporate governance, management accounting practice and organizational performance, and finds out that the organizations with the majority of independent directors and the leadership separation most likely adopt management accounting practices and as a result achieve the most enhanced performance. In contrast, those with the minority of independent directors and the leadership combination least likely adopt management accounting practices, which leads to the least enhanced performance. Furthermore, it also offers evidence on the mediation of adopting management accounting practices in the effect of corporate governance on organizational performance. The findings can help business managers with building effective management accounting systems, which fit their firm’s structures of corporate governance, so that they can achieve the possible best success.

Keywords: Difference-in-difference method; Corporate governance; Management accounting practice; Organizational performance (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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