Predictors of the Effectiveness of Management Accounting Function in Nigerian Firms

Oyewo Babajide ()
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Oyewo Babajide: Department of Accounting, University of Lagos, Akoka, Lagos, Nigeria

Scientific Annals of Economics and Business, 2017, vol. 64, issue 4, 487-512

Abstract: This study evaluated the influence of six contingent variables – firm size, age, sector, existence of management accounting department, affiliation to foreign entity and public-quotation status – on the effectiveness of management accounting function in Nigerian firms. Stratified random sampling technique was deployed to obtain the views of 131 Finance Officers with oversight role across major sectors of the Nigerian economy. Statistical tools used in analysis were descriptive statistics, factor-analysis, Kruskal Wallis Test and binary logistic regression. Whilst detecting that contextual variables such as size, age, sector, existence of management accounting department and public-quotation status significantly affect the effectiveness of the management accounting function, affiliation to foreign entity was found not to exert significant influence. The strongest predictor of the likelihood of operating a very effective management accounting function was the existence of management accounting department. Organisations are encouraged to have separate management accounting department because of additional benefits imbued by specialist management accounting skills.

Keywords: Chartered Global Management Accountants (CGMA); global management accounting principles; management accounting function; performance management; strategy; strategic management accounting (search for similar items in EconPapers)
JEL-codes: M10 M41 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:aicuec:v:64:y:2017:i:4:p:487-512:n:1

DOI: 10.1515/saeb-2017-0026

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