Measuring management accounting practices using textual analysis
Publication Type
Journal Article
Publication Date
3-2023
Abstract
Management accounting is an important component of managerial decision-making to help guide the overall business strategy in organisations. Appropriate measures of management accounting practices (MAPs) allow academics and practitioners to assess the organisations’ MAP adoption effectively. In this study, based on qualitative information disclosed in annual reports from 2003 to 2019, we construct and validate novel and comprehensive measures of firm-level MAPs using the word embedding model Word2Vec. We illustrate the predictive validity of our measures by examining the determinants and value creation function of fitted MAPs. Our novel measures of MAPs not only provide a solid foundation for large scale sample empirical analyses of management accounting research but also pave a new way to investigate MAPs as a package.
Keywords
Contingency theory, Corporate lifecycle stages, Management accounting practices, Value creation, Word embedding model
Discipline
Accounting | Finance and Financial Management | Numerical Analysis and Scientific Computing
Research Areas
Information Systems and Management
Publication
Management Accounting Research
Volume
58
First Page
1
Last Page
16
ISSN
1044-5005
Identifier
10.1016/j.mar.2022.100818
Publisher
Elsevier
Citation
QIU, Fangjuan; HU, Nan; LIANG, Peng; and DOW, Kevin.
Measuring management accounting practices using textual analysis. (2023). Management Accounting Research. 58, 1-16.
Available at: https://ink.library.smu.edu.sg/sis_research/8039
Copyright Owner and License
Authors
Additional URL
https://doi.org/10.1016/j.mar.2022.100818