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Contribution of management accounting practices to the efficiency of organic farms

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  • García-Cornejo, Beatriz
  • Pérez-Méndez, José A.
  • Wall, Alan
  • Castrillo Cachón, David

Abstract

This study analyzes the influence of management accounting practices on the efficiency of organic farms. To do this, we collected survey data from 50 Spanish organic farms. Efficiency is measured using Data Envelopment Analysis (DEA). Results show that the use of management accounting practices improves efficiency. Specifically, a greater intensity in their use can lead to an increase in the margin of approximately 4.000 € for the representative farm. We also observe that efficiency is enhanced by the use of newer management accounting techniques (e.g., benchmarking) more than by traditional techniques (e.g., costing). This paper offers guidance to policymakers, farm advisors and entrepreneurs of the organic farm sector about the suitability and the potential economic impact of the management accounting tools.

Suggested Citation

  • García-Cornejo, Beatriz & Pérez-Méndez, José A. & Wall, Alan & Castrillo Cachón, David, 2021. "Contribution of management accounting practices to the efficiency of organic farms," Efficiency Series Papers 2021/07, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2021/07
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    File URL: https://www.unioviedo.es/oeg/ESP/esp_2021_07.pdf
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    References listed on IDEAS

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    1. Rikkonen, Pasi & Mäkijärvi, Essi & Ylätalo, Matti, 2013. "Defining foresight activities and future strategies in farm management – empirical results from Finnish FADN farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(1), pages 1-9, October.
    2. Bok Baik & Joon Chae & Sunhwa Choi & David B. Farber, 2013. "Changes in Operational Efficiency and Firm Performance: A Frontier Analysis Approach," Contemporary Accounting Research, John Wiley & Sons, vol. 30(3), pages 996-1026, September.
    3. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
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