IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2017i2p21-26.html
   My bibliography  Save this article

Evaluation of Accounting Information for Making Management Decisions

Author

Listed:
  • Svitlana Kuznetsova

    (Kharkiv Institute of Trade and Economics of Kyiv National University of Trade and Economics, Kharkiv, Ukraine)

Abstract

The article analyzes the current approaches towards the evaluation of efficiency of accounting information and explains the accounting information evaluation pattern, when taking management decisions with due account for the information streams as influenced by the integration of visual attention and understanding of strategic business plans. Science-based approaches towards understanding the essence of evaluation of accounting information are under analysis. The elements of conceptual pattern of accounting information evaluation prior to taking management decisions have been explained. The process of synthesis of scientific basics of evaluation of accounting information, while taking management decisions, has been clarified. It is found that studying the interdependency between attention and judgment is crucial for evaluating the behavior of managers, while taking decisions. The quality of decisions stands for the capability of managers to take decisions, which comply with the strategic business goals. In this respect, the essential factor determining the quality of the decisions is the mindshare paid to the strategic efficiency indices, while evaluating the accounting information.

Suggested Citation

  • Svitlana Kuznetsova, 2017. "Evaluation of Accounting Information for Making Management Decisions," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 21-26, June.
    • Handle: RePEc:iaf:journl:y:2017:i:2:p:21-26
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/467-ocinka-oblikovoi-informacii-dlya-priynyattya-upravlinskih-rishen.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/467/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Birnberg, Jacob G. & Shields, Michael D., 1984. "The role of attention and memory in accounting decisions," Accounting, Organizations and Society, Elsevier, vol. 9(3-4), pages 365-382, October.
    2. Banker, Rajiv D. & Chang, Hsihui & Pizzini, Mina, 2011. "The judgmental effects of strategy maps in balanced scorecard performance evaluations," International Journal of Accounting Information Systems, Elsevier, vol. 12(4), pages 259-279.
    3. Yasheng Chen & Johnny Jermias & Tota Panggabean, 2016. "The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 113-146, 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. Horvat Tatjana & Mojzer Jožica, 2019. "Influence of Company Size on Accounting Information for Decision-Making of Management," Naše gospodarstvo/Our economy, Sciendo, vol. 65(2), pages 11-20, June.

    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. Borozan, Miloš & Loreta, Cannito & Riccardo, Palumbo, 2022. "Eye-tracking for the study of financial decision-making: A systematic review of the literature," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    2. Yasheng Chen & Johnny Jermias & Tota Panggabean, 2016. "The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 113-146, March.
    3. Kerry A. Humphreys, 2023. "The balanced scorecard: Do managers need a strategy map when evaluating performance?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4357-4373, December.
    4. Victor S. Maas & Niels Verdoorn, 2017. "The effects of performance report layout on managers’ subjective evaluation judgments," Accounting and Business Research, Taylor & Francis Journals, vol. 47(7), pages 731-751, November.
    5. Dalla Via, Nicola & Perego, Paolo & van Rinsum, Marcel, 2019. "How accountability type influences information search processes and decision quality," Accounting, Organizations and Society, Elsevier, vol. 75(C), pages 79-91.
    6. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    7. Patrizia Di Tullio & Matteo La Torre & Diego Valentinetti & Michele A. Rea, 2021. "Toward performance measurement systems based on business models," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 1), pages 97-122.
    8. Jassem Suaad & Zakaria Zarina & Che Azmi Anna, 2020. "Sustainability Balanced Scorecard Architecture and Environmental Investment Decision-Making," Foundations of Management, Sciendo, vol. 12(1), pages 193-210, January.
    9. Kida, Thomas & Smith, James F., 1995. "The encoding and retrieval of numerical data for decision making in accounting contexts: Model development," Accounting, Organizations and Society, Elsevier, vol. 20(7-8), pages 585-610.
    10. Davood Askarany & Hassan Yazdifar, 2018. "The Diffusion of Balanced Scorecard from the Perspective of Adopters: Evidence from Australia," Review of Economics & Finance, Better Advances Press, Canada, vol. 14, pages 71-82, November.
    11. Ivo De Loo & Peter Nederlof & Bernard Verstegen, 2006. "Detecting behavioural patterns of Dutch controller graduates through interpretive interactionism principles," Qualitative Research in Accounting & Management, Emerald Group Publishing, vol. 3(1), pages 46-66, April.
    12. Brian D. Knox, 2021. "A replication about cause–effect linkage benefits and managers’ strategic judgments," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(2), pages 225-251, June.
    13. Reinking, Jeff & Arnold, Vicky & Sutton, Steve G., 2020. "Synthesizing enterprise data through digital dashboards to strategically align performance: Why do operational managers use dashboards?," International Journal of Accounting Information Systems, Elsevier, vol. 37(C).
    14. Wüstemann, Jens, 2004. "Evaluation and response to risk in international accounting and audit systems : framework and German experiences," Papers 04-20, Sonderforschungsbreich 504.
    15. Martijn van der Steen, 2009. "Inertia and management accounting change," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(5), pages 736-761, June.
    16. Manthei, Kathrin & Sliwka, Dirk & Vogelsang, Timo, 2021. "Information Provision, Incentives, and Attention: A Field Experiment on Facilitating and Influencing Managers' Decisions," IZA Discussion Papers 14199, Institute of Labor Economics (IZA).
    17. Wüstemann, Jens, 2004. "Evaluation and Response to Risk in International Accounting and Audit Systems: Framework and German Experiences," Sonderforschungsbereich 504 Publications 04-20, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    18. Christian Mastilak & Linda Matuszewski & Fabienne Miller & Alexander Woods, 2012. "Evaluating conflicting performance on driver and outcome measures: the effect of strategy maps," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(2), pages 97-114, November.
    19. Sara Fanati Rashidi, 2020. "Studying productivity using a synergy between the balanced scorecard and analytic network process," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1404-1421, December.
    20. Kai A. Bauch & Peter Kotzian & Barbara E. Weißenberger, 2021. "Likeability in subjective performance evaluations: does it bias managers’ weighting of performance measures?," Journal of Business Economics, Springer, vol. 91(1), pages 35-59, February.

    More about this item

    Keywords

    management accounting; evaluation; management reporting; accounting information; management decisions;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    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:iaf:journl:y:2017:i:2:p:21-26. 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: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    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.