Accounting and politicians: a theory of accounting information usefulness

Purpose - How do cognitive aspects influence the use/non-use of accounting information by the politicians? The purpose of this paper is to conceptualize and theorize the readiness to use and the actual use of accounting information in relation to the human and social agency involved. Design/methodology/approach - Applying cognitive fit theory and social cognitive theory, the authors explain how cognition of accounting information producers and users relates to their tasks and their environment. Analyzing cognitive matching, the authors develop accounting information usefulness as a function of the cognitive match between the accounting information producers and users. Findings - The theoretical findings posit that cognitive fit increases with the degree of matching between the cognition of accounting information producers and the cognition of accounting information users. The theory proposes that enriching and matching the various cognitive factors lead to formation of more aligned mental representations to govern the processes of accounting information production and use as a prerequisite for the accounting information usefulness. Research limitations/implications - By theorizing human cognition, behavior and learning, the authors seek to contribute to the explanation and prediction of accounting information use. Future research needs to empirically validate and/or further develop the propositions. Practical implications - Practically, the conceptualization can be used to align individual and collective learning on both sides and to introduce information use audit as an instrument for supporting collective learning. Originality/value - The theory of accounting information usefulness is the first attempt in public sector accounting literature to explain the relation of production and consumption of accounting information in relation to the cognition of the actors involved.