2024, Vol. 5, Issue 2, Part G
The impact of company characteristics on strategic cost and management accounting practices: Empirical evidence from Iraq
Author(s): Laith Noman Hassoon
Abstract: Management accounting practices are important in the business environment due to the advantages that these practices generate in rationalizing administrative decisions that are reflected in cost reduction and quality improvement. Perhaps the level of adoption of these practices is largely related to the structural and organizational framework of companies and the characteristics that these companies possess that qualify them to adopt more enhanced practices to produce appropriate accounting information. The research aims to test the effect of variation and differences in company characteristics on the strategic practices of cost and management accounting that are adopted in Iraqi industrial companies. The originality of the current research stems from its reliance on actual data from the reality of Iraqi companies to achieve this goal, unlike previous local studies that involved analytical theoretical tests or survey. The company’s characteristics were identified within four groups: size, age, financial leverage, and profitability. Its data was collected through analysis of the informational content of the financial reports. Published for the research sample companies, while the strategic cost and management accounting practices were identified with ten practices. A checklist was designed as a research tool specifically intended to collect data about these practices through personal interviews and field visits to the research sample companies. The research sample included 10 industrial companies listed in Iraq Stock Exchange for a period of four years extending from 2018-2021. The research reached a set of conclusions. The most important of which is that the four characteristics of the company have a positive and significant impact on the plurality of strategic practices for cost and management accounting and increase the scope of adopting these practices, as the profitability characteristic had the greatest impact, followed by age, then Financial leverage and finally the size of the company. This supports the contingency theory, which explains the changes caused by the company's organizational changes in management accounting practices.
DOI: 10.22271/27084515.2024.v5.i2g.403
Pages: 591-600 | Views: 79 | Downloads: 25
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How to cite this article:
Laith Noman Hassoon. The impact of company characteristics on strategic cost and management accounting practices: Empirical evidence from Iraq. Asian J Manage Commerce 2024;5(2):591-600. DOI: 10.22271/27084515.2024.v5.i2g.403
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