Doctor of Philosophy
Department of Accountancy
Ghozali, Imam, The application of advanced management accounting: does it improve company performance?, Doctor of Philosophy thesis, Department of Accountancy, University of Wollongong, 1995. http://ro.uow.edu.au/theses/1006
The major purposes of this study were twofold: (1) to determine the relationship between certain contextual variables of firm characteristics and the application of advanced management accounting techniques, and (2) to identify how firm performance is affected by contextual variables and the application of advanced management accounting techniques. Eight hypotheses were formulated to accomplish the study purpose.
A questionnaire was developed to gather data. The sampling frame of the population was the Top 500 listed Australian companies. A pilot study of 100 questionnaires were sent to the respondents. Revised questionnaires were mailed to all Top 500 Australian companies. Two types of statistical analysis were adopted to test the hypotheses. Hypothesis one was tested using multiple logistic regression model. Hypotheses two through eight were tested using nonparametric statistical test, Mann-Whitney U test.
The study found that the extent of use of advanced management accounting techniques and firm size significantly reduce the probability the firm will perform above average performance of the sample firm. But the interaction variables provide evidence that any separation of size and capital intensity effect from the extent of the use of management accounting techniques is problematic. Looking at the interaction variables the results show that large firms that applied advanced management accounting techniques extensively significantly increase the probability the firm will perform above average performance of the sample firms. It is also true for high capital intensive firms that applied advanced management accounting techniques extensively.
The study also observed that contextual variables of firm characteristics influenced the application of management accounting techniques. Contextual variables age, type of industry, capital intensity, and leverage have significant influenced on the application of advanced management accounting techniques type I, II and HI. Firm size has significant influence on the application of advanced management accounting techniques type I and III. Firm risk also only has significant influence on the application of advanced management accounting techniques type II and DDL But in terms of ownership, there is no difference between public listed domestic firms and public listed foreign firms in applying management accounting techniques.