Strategic Management Accounting Effectiveness and Firm Value: An Empirical Evidence from Thai Listed Firms

Abstract

This research integrates the key dimensions of strategic management accounting effectiveness in a new model. The primary objective of this research is to examine the effects of strategic management accounting effectiveness on firm value. Moreover, the effects of strategic management accounting effectiveness on operational efficiency and the advantages of management are investigated. Finally, this research tests the effects of top management involvement, enterprise resource planning efficiency, interdepartmental communications, and market dynamics on strategic management accounting effectiveness.

In this research, the main contribution is that strategic management accounting effectiveness has an important role to improve operational performance in Thai-listed companies. It can fulfill the gap of management literature by introducing strategic management accounting effectiveness under the diffusion of the dynamic capability theory and contingency theory, and suggest the appropriate dimension to enhance the value of the firm. Thai-listed companies were selected as the sample. A questionnaire is used as an instrument for data collection and the accounting manager/accounting director is the key informant. Data were collected from a sample of 118 firms. The effective response rate was approximately 22.31%. The Ordinary Least Squares (OLS) regression analysis is the method for testing the hypotheses.

The results of this research indicate that resource allocation excellence, managerial information reliability, cost-benefit quality and mastering strategic management have a significant positive effect on operational efficiency, advantages of management, and firm value. Furthermore, operational efficiency and the advantages of management positively relate to firm value. Eventually, top management involvement, enterprise resource planning efficiency, interdepartmental communications and market dynamics have a positive effect on four dimensions of strategic management accounting effectiveness.

In summary, this research concentrates on dimensions of strategic management accounting effectiveness that provide a significant expansion on previous knowledge and the relevant strategic management accounting literature. It also gives the directions and suggestions for the firms to identify and justify key components of strategic management accounting effectiveness that may help them to be successful in the long term. This research reveals both future research direction and limitations. Future research needs to re-investigate and may apply additional research methods in the future such as in-depth interviews and case studies.

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