Journal article

Publication year: 2011

Pages: 160-180

Journal: Management Accounting Research

Volume number: 22

Issue number: 3

ISSN: 1044-5005

eISSN: 1096-1224

DOI Link: https://doi.org/10.1016/j.mar.2011.03.003

Publisher: Elsevier

Abstract: 

Two fundamental options exist for management accounting system (MAS) design: Either financial records can be used as a database for management accounting (integrated accounting system design), or the MAS can be based upon a separate system, i.e., a third set of books beside financial and tax accounting records. Since the 1990s, many German-speaking firms have changed from the second to the first option, which has instigated a highly controversial debate.

Our paper contributes to this debate by empirically analyzing (1) whether the integration of financial and management accounting has a positive impact on controllership effectiveness, and (2) what causal inferences relate both variables. We use structural equation modelling for a sample of 149 dyads surveyed from German top 1500 firms. We identify no significant effect of the technical aspects of MAS integration, but a fully mediating influence of a consistent financial language on controllership effectiveness. Our results thus imply that consistency with financial reporting is an important property of MAS design from management's point of view. (C) 2011 Elsevier Ltd. All rights reserved.

Harvard Citation style: Weissenberger, B. and Angelkort, H. (2011) Integration of financial and management accounting systems: The mediating influence of a consistent financial language on controllership effectiveness, Management Accounting Research, 22(3), pp. 160-180. https://doi.org/10.1016/j.mar.2011.03.003

APA Citation style: Weissenberger, B., & Angelkort, H. (2011). Integration of financial and management accounting systems: The mediating influence of a consistent financial language on controllership effectiveness. Management Accounting Research. 22(3), 160-180. https://doi.org/10.1016/j.mar.2011.03.003