Corporate Governance on the Corporate Characteristics-Managerial Accounting link

Abstract

The objective of this article attempts to investigate the intervening impact of corporate governance on the causal link between corporate characteristics and the application of managerial accounting, which has not been discussed and empirically investigated in the prior literature. A successful survey of 395 publicly listed firms in Vietnam offers experimental evidence that corporate characteristics indirectly contribute to the application of managerial accounting via corporate governance. This research further investigates whether the causal association from corporate governance to the application of managerial accounting is moderated by corporate characteristics, which has been ignored by prior research. The findings reveal that corporate characteristics impose a moderating influence on the corporate governance- managerial accounting causal linkage. The current research contributes to the management literature by shedding light on the intricate associations among corporate governance, corporate characteristics and the application of managerial accounting in that the mediation of corporate governance and the moderation of corporate characteristics are clarified. The findings are also expected useful to executives in helping for better decisions on the application of managerial accounting tools in business, appropriate to their corporate governance structure and corporate characteristics in order to receive the best possible corporate performance.