IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2019-05-18.html
   My bibliography  Save this article

The Factors Influencing Managerial Performance and their Effect on Financial Accountability

Author

Listed:
  • Freddy Semuel Kawatu

    (Faculty of Economics, Manado State University, Indonesia)

  • Cecilia Lelly Kewo

    (Faculty of Economics, Manado State University, Indonesia)

Abstract

This study aims to examine and analyze the factors that influence managerial performance and their effect for financial accountability. By using an explanatory research method, this type of research is descriptive verification. Using primary data through surveys by providing research instruments to regional work unit tools at North Sulawesi. The collected data tested using the Structural Equation Model (SEM) method with Partial Least Square (PLS) approach. Simultaneous results of participatory budgeting, clarity of budget targets and internal control have a positive effect on managerial performance. Likewise managerial performance has a positive effect on financial accountability.

Suggested Citation

  • Freddy Semuel Kawatu & Cecilia Lelly Kewo, 2019. "The Factors Influencing Managerial Performance and their Effect on Financial Accountability," International Journal of Economics and Financial Issues, Econjournals, vol. 9(5), pages 135-139.
    • Handle: RePEc:eco:journ1:2019-05-18
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/8551/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/8551/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dongsung Kong, 2005. "Performance-Based Budgeting: The U.S. Experience," Public Organization Review, Springer, vol. 5(2), pages 91-107, June.
    2. Mia, Lokman & Chenhall, Robert H., 1994. "The usefulness of management accounting systems, functional differentiation and managerial effectiveness," Accounting, Organizations and Society, Elsevier, vol. 19(1), pages 1-13, January.
    3. Frank H.M. Verbeeten, 2008. "Performance management practices in public sector organizations," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(3), pages 427-454, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nanik ISTIANINGSIH & Ariyanto MASNUN & Widya PRATIWI, 2020. "Managerial Performance Models Through Decision Making And Emotional Intelligence In Public Sector," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(35), pages 153-166, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gamage Dinoka Nimali PERERA & Mada Gamage Geetha THARANGANIE & Udayangani Kumari THALGASPITIYA, 2016. "Performance Management Practices in the Listed Companies in Sri Lanka," Expert Journal of Business and Management, Sprint Investify, vol. 4(2), pages 118-123.
    2. Nguyen, Thi Thu & Mia, Lokman & Winata, Lanita & Chong, Vincent K., 2017. "Effect of transformational-leadership style and management control system on managerial performance," Journal of Business Research, Elsevier, vol. 70(C), pages 202-213.
    3. Asogwa & Ikenna Elias & Etim & Osim Etim, 2017. "Traditional Budgeting in Today’s Business Environment," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(3), pages 1-7.
    4. Vincent Chong & Kar Chong, 1997. "Strategic Choices, Environmental Uncertainty and SBU Performance: A Note on the Intervening Role of Management Accounting Systems," Accounting and Business Research, Taylor & Francis Journals, vol. 27(4), pages 268-276.
    5. Hall, Matthew, 2008. "The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance," Accounting, Organizations and Society, Elsevier, vol. 33(2-3), pages 141-163.
    6. Dunk, Alan S., 2003. "Moderated regression, constructs and measurement in management accounting: a reflection," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 793-802.
    7. Chong, Vincent K., 1996. "Management accounting systems, task uncertainty and managerial performance: A research note," Accounting, Organizations and Society, Elsevier, vol. 21(5), pages 415-421, July.
    8. Mauldin, Elaine G. & Ruchala, Linda V., 1999. "Towards a meta-theory of accounting information systems," Accounting, Organizations and Society, Elsevier, vol. 24(4), pages 317-331, May.
    9. Hartmann, Frank G. H. & Moers, Frank, 1999. "Testing contingency hypotheses in budgetary research: an evaluation of the use of moderated regression analysis," Accounting, Organizations and Society, Elsevier, vol. 24(4), pages 291-315, May.
    10. Mahdi Salehi, 2011. "A study of the barriers of implementation of accounting information system: Case of listed companies in Tehran Stock Exchange," Journal of Economics and Behavioral Studies, AMH International, vol. 2(2), pages 76-85.
    11. Bogt, H.J. ter, 2006. "New public management and management changes in Dutch local government: some recent experiences and future topics," Research Report 06D04, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    12. Bhimani, Alnoor & Dai, Narisa Tianjing & Sivabalan, Prabhu & Tang, Guliang, 2017. "How do enterprises respond to a managerial accounting performance measure mandated by the state?," LSE Research Online Documents on Economics 83687, London School of Economics and Political Science, LSE Library.
    13. Rodriguez, Carlos Adrian, 2016. "Challenges to effectiveness in public health organizations: The case of the Costa Rican Health Ministry," Journal of Business Research, Elsevier, vol. 69(9), pages 3859-3868.
    14. Zied Louizi & Mohamed Ali Boujelbene, 2016. "L'impact des caractéristiques du système d'information comptable et de l'incertitude environnementale sur la performance financière : Cas des PME tunisiennes," Post-Print hal-02273549, HAL.
    15. Dobre Ovidiu Iliuta, 2014. "The Link Between Organizational Culture And Performance Management Practices: A Case Of It Companies From Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1156-1163, July.
    16. Hall, Matthew, 2011. "Do comprehensive performance measurement systems help or hinder managers' mental model development?," LSE Research Online Documents on Economics 36703, London School of Economics and Political Science, LSE Library.
    17. Lau, Chong M. & Roopnarain, Ketvi, 2014. "The effects of nonfinancial and financial measures on employee motivation to participate in target setting," The British Accounting Review, Elsevier, vol. 46(3), pages 228-247.
    18. Rogério João Lunkes & Fabricia Silva da Rosa & Pamela Lattanzi, 2020. "The Effect of the Perceived Utility of a Management Control System with a Broad Scope on the Use of Food Waste Information and on Financial and Non-Financial Performances in Restaurants," Sustainability, MDPI, vol. 12(15), pages 1-14, August.
    19. Ittner, Christopher D. & Larcker, David F., 2001. "Assessing empirical research in managerial accounting: a value-based management perspective," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 349-410, December.
    20. Naranjo-Gil, David & Hartmann, Frank, 2007. "Management accounting systems, top management team heterogeneity and strategic change," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 735-756.

    More about this item

    Keywords

    Participatory budgeting; Budget goal clarity; Internal control; Managerial performance; financial Accountability;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2019-05-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.