Use of Monte Carlo simulation: an empirical study of German, Austrian and Swiss controlling departments

Cathérine Grisar () and Matthias Meyer ()

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, 2015, vol. 26, issue 2, 249-273

Abstract: This paper addresses current and future aspects of the use of Monte Carlo simulation in controlling departments and examines context as well as company-internal factors that may drive the intensity of its usage. To this end, we conducted an empirical survey that was completed by 445 participants from Germany, Austria and Switzerland. The results suggest a rather low adoption rate of Monte Carlo simulation in controlling, but at the same time, the quality of knowledge concerning Monte Carlo simulation within the companies is much higher. In addition, we identify a strong increase in the use of Monte Carlo simulation very recently, and its use is expected to increase threefold within the next 5 years. Furthermore, regression analyses indicate that the use of Monte Carlo simulation is mainly driven by company-internal factors such as its perceived relevance and years of usage. Contrary to our expectations, context factors such as perceived environmental uncertainty do not explain usage, and only company size and industry sector have significant effects. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Controlling; Monte Carlo simulation; Survey; Perceived environmental uncertainty; Use; C60; M41 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s00187-015-0213-2

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