How Management Accounting affect firm performance?

Abstract

In China, managers use Management Accounting to manage their companies, so scholars have begun to study how Management Accounting will affect firm performance. According to the resource-based theory, this paper argues that Management Accounting will affect firm performance by influencing corporate innovation behavior. In order to verify this hypothesis, Management Accounting and controls, ambidextrous innovation (including exploratory innovation and exploitative innovation) and firm performance are tested by structural equation modeling with survey data from 188 companies in China. The research conclusion shows that the use of Management Accounting and controls can improve corporate performance, and ambidextrous innovation is an intermediary.