Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 497 - 522 |
| Number of pages | 26 |
| Journal | Accounting and Business Research |
| Volume | 44 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - 2014 |
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Does consistency in management control systems design choices influence firm performance? An empirical analysis. / Gong, Zhiyun; Ferreira, Aldonio.
In: Accounting and Business Research, Vol. 44, No. 5, 2014, p. 497 - 522.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Does consistency in management control systems design choices influence firm performance? An empirical analysis
AU - Gong, Zhiyun
AU - Ferreira, Aldonio
PY - 2014
Y1 - 2014
N2 - This study examines the impact on firm performance of theoretically consistent relationships between three management control systems (MCS) design choices - delegation, performance measurement, and incentive compensation. Based upon the three-legged stool model and agency theory, the hypothesis is that theoretically consistent MCS design choices are associated with enhanced firm performance. Using survey data from large Australian firms, the findings support the hypothesis, suggesting that an appropriate MCS design is a determinant of firm performance. The study contributes to the literature by moving beyond a focus on the antecedents of the three key MCS design choices to the consequence of alignment of those choices.
AB - This study examines the impact on firm performance of theoretically consistent relationships between three management control systems (MCS) design choices - delegation, performance measurement, and incentive compensation. Based upon the three-legged stool model and agency theory, the hypothesis is that theoretically consistent MCS design choices are associated with enhanced firm performance. Using survey data from large Australian firms, the findings support the hypothesis, suggesting that an appropriate MCS design is a determinant of firm performance. The study contributes to the literature by moving beyond a focus on the antecedents of the three key MCS design choices to the consequence of alignment of those choices.
U2 - 10.1080/00014788.2014.901164
DO - 10.1080/00014788.2014.901164
M3 - Article
VL - 44
SP - 497
EP - 522
JO - Accounting and Business Research
JF - Accounting and Business Research
SN - 0001-4788
IS - 5
ER -