The Association between Management Accounting Advancement and Corporate Performance: An Application of IFAC Conception for Management Accounting Evolution

• Published in: Quality - Access to Success
• Main Author: Al-Dhubaibi A.A.S.; Sanusi Z.M.; Hasnan S.; Yusuf S.N.S.
• Format: Article
• Language: English
• Published: SRAC - Romanian Society for Quality 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85162212606&doi=10.47750%2fQAS%2f24.195.32&partnerID=40&md5=840dc8889ee4b3505cdc193d3bbeaa5c
• ISSN: 15822559
• DOI: 10.47750/QAS/24.195.32

This study uses the conception of the International Federation of Accountants (IFAC) for the evolution of management accounting practice (MAP) to examine the association between MAP level of advancement and corporate performance, and whether the association is more profound in a particular industry. A structured questionnaire was used for data collection. The questionnaire was sent to the members of the Yemeni Business Club which consists of 482 companies operating in various industries. The results of this study support the proposition that companies that are classified at the higher levels of management accounting application (use advanced MAP) based on IFAC hierarchy showed higher financial and non-financial performance when compared to the companies that are classified at the lower levels of IFAC hierarchy (continue to use traditional MAP). The results showed no effect for the type of industry on the association between MAP level and corporate performance. © 2023, SRAC - Romanian Society for Quality. All rights reserved.