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The Usefulness of Accounting Information and Management Accounting Practices under Environmental Uncertainty

Author

Listed:
  • Rui Pires

    (Instituto Politécnico de Bragança, 5300-253 Bragança, Portugal)

  • Maria-Ceu Gaspar Alves

    (NECE-UBI Research Unit in Business Sciences, University of Beira Interior, 6201-001 Covilhã, Portugal)

  • Catarina Fernandes

    (Instituto Politécnico de Bragança, 5300-253 Bragança, Portugal
    Centro de Economia e Finanças da Universidade do Porto (CEF.UP), Faculdade de Economia da Universidade do Porto, 4200-464 Porto, Portugal)

Abstract

The purpose of this paper is twofold. Firstly, we aim to investigate the relationships among environmental uncertainty, broad-scope and timely management accounting information usefulness, and (traditional and contemporary) management accounting practices (MAPs) usage. Secondly, we intend to explore how these relationships influence decision-makers’ satisfaction with management accounting information. Survey data were obtained through an online questionnaire from 114 large manufacturing companies operating in Portugal. The findings indicate a positive relationship between environmental uncertainty and timely management accounting information usefulness and between (broad-scope and timely) management accounting information usefulness and (traditional and contemporary) MAPs usage. The findings also show that decision-makers’ satisfaction with management accounting information improves when there is a good fit between environmental uncertainty, broad-scope and timely management accounting information usefulness, and MAPs usage. In this way, organisations need to adjust the implementation and usage of MAPs to contextual factors, using both contemporary and traditional MAPs, to achieve greater decision-makers’ satisfaction with management accounting information. Thus, the results achieved in this study are useful for both theory and practice and have several implications for professionals engaged in MAPs implementation and decision-making activities.

Suggested Citation

  • Rui Pires & Maria-Ceu Gaspar Alves & Catarina Fernandes, 2023. "The Usefulness of Accounting Information and Management Accounting Practices under Environmental Uncertainty," JRFM, MDPI, vol. 16(2), pages 1-21, February.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:2:p:102-:d:1061731
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    References listed on IDEAS

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