IDEAS home Printed from https://ideas.repec.org/a/mgt/youmgt/v4y2006i4p299-312.html
   My bibliography  Save this article

Impact of Strategic Initiatives in Management Accounting on Corporate Financial Performance: Evidence from Amman Stock Exchange

Author

Listed:
  • Husam Aldeen Al-Khadash

    (Hashemite University, Jordan)

  • Mete Feridun

    (Cyprus International University)

Abstract

This article aims at investigating the link between the practice of Activity Based Costing (ABC), Just-in-Time (JIT), and Total Quality Management (TQM) as strategic initiatives and the improvement in corporate financial performance of 56 industrial shareholding companies in Jordan. Ordinary Least Squares Regression analysis is used to test the association between the awareness level of the importance of using the initiatives and the level of adopting these initiatives. It is also used to identify the improvement in ROA as a mean of financial performance which is associated with the initiatives. Analysis shows that 26.8% of the companies under consideration use at least one of the strategic initiatives. In addition, the awareness level of the importance of using the strategic initiatives is found to be significantly high among the financial managers, but such awareness is not reflected in the implementation of these initiatives. Furthermore, strong evidence emerges that the use of strategic initiatives leads to improvement in financial performance of the companies under consideration.

Suggested Citation

  • Husam Aldeen Al-Khadash & Mete Feridun, 2006. "Impact of Strategic Initiatives in Management Accounting on Corporate Financial Performance: Evidence from Amman Stock Exchange," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 4(4), pages 299-312.
    • Handle: RePEc:mgt:youmgt:v:4:y:2006:i:4:p:299-312
    as

    Download full text from publisher

    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/4_299-312.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Ahmad Mohammed Alamri, 2018. "Strategic Management Accounting and the Dimensions of Competitive Advantage: Testing the Associations in Saudi Industrial Sector," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(2), pages 48-64, April.
    2. Jana Pokorná, 2016. "Impact of Activity-Based Costing on Financial Performance in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(2), pages 643-652.
    3. Abedalqader Rbaba’h, 2013. "The influence of Company Characteristics Factors to Activity Based Costing System Implementation," Journal of Education and Vocational Research, AMH International, vol. 4(2), pages 36-46.
    4. Pérez-Méndez, José Antonio & Machado-Cabezas, Ángel, 2015. "Relationship between management information systems and corporate performance," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(1), pages 32-43.
    5. Viktorija Varaniūtė & Ineta Žičkutė & Akvilė Žandaravičiūtė, 2022. "The Changing Role of Management Accounting in Product Development: Directions to Digitalization, Sustainability, and Circularity," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    6. Odia, J.O., 2019. "Strategic Management Accounting Techniques Usage, Strategic Choices, and Performance of Financial Institutions in Nigeria," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 9(2), pages 94-109, December.
    7. Charles Ikechukwu Agu & Augustine Uchechukwu Nweze & Chinedu Innocent Enekwe, 2016. "The Use of Strategic Management Accounting Techniques (SMATs) in Sustainability Performance Measurement for Corporate Governance in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(3), pages 262-271, July.

    More about this item

    Keywords

    ABC; JIT; TQM; strategic initiatives; improvement in financial performance;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    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:mgt:youmgt:v:4:y:2006:i:4:p:299-312. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Alen Jezovnik (email available below). General contact details of provider: https://edirc.repec.org/data/fmkupsi.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.