Identifying Necessary Conditions in Accounting Research: Logical and Methodological Issues
Search citation statements
Paper Sections
Citation Types
Year Published
Publication Types
Relationship
Authors
Journals
Cited by 3 publications
References 33 publications
PurposeThe authors illustrate accounting information's effects in terms of necessity and sufficiency, using a set-theoretic approach, and highlight how the approach complements conventional correlational analyses.Design/methodology/approachThe authors examine the relationship between accounting numbers (accounting information) and stock prices (effect) under both correlational and set-theoretic perspectives using a value relevance methodology.FindingsThe claim that accounting information is significantly correlated to an outcome does not inform the accounting information's necessity or sufficiency. In addition, findings suggest that not all control variables that are significantly correlated to a supposed accounting effect are necessary to explain that effect. Moreover, variables reflecting accounting information are not individually sufficient to explain the effect under investigation.Research limitations/implicationsThe study contributes to set-theoretic approach to accounting research and echoes the call for a diversity of research approaches in accounting.Practical implicationsThe study may have practical implications for various accounting information users, including investors, financial analysts and financial market and accounting disclosure regulators as well. Indeed, accounting information users should consider the importance of the combined effect of multiple pieces of accounting information in the users' positions on firms' stocks. Understanding what might be the relevant combinations of accounting information associated with a given organizational context is a key in making compelling accounting-informed decisions. Such knowledge can inform reflections of accounting disclosures and regulations on the combined effects of several accounting information.Originality/valueFirst, the study adds to the newly introduced set-theoretic approach to empirical accounting. The study also resonates with the call for a diversity of research approaches in accounting. The authors empirically demonstrate that significant correlation between accounting information and its effects does not connote “necessity” or “sufficiency,” which is rather revealed by qualitative comparative analysis (QCA). Such complementarity can help accounting researchers to carry out (1) new investigations of accounting's earlier hypotheses or propositions and (2) investigations of new accounting hypotheses/propositions deriving from existing accounting theories and (3) to explore new relationships between accounting phenomena. Second, the study incidentally contributes to value relevance literature in terms of contextualization of the relevance of accounting information. Specific to the African capital markets, the study complements the few recent studies on the Bourse Régionale des Valeurs Mobilières d’Abidjan (BRVM).
PurposeThe authors illustrate accounting information's effects in terms of necessity and sufficiency, using a set-theoretic approach, and highlight how the approach complements conventional correlational analyses.Design/methodology/approachThe authors examine the relationship between accounting numbers (accounting information) and stock prices (effect) under both correlational and set-theoretic perspectives using a value relevance methodology.FindingsThe claim that accounting information is significantly correlated to an outcome does not inform the accounting information's necessity or sufficiency. In addition, findings suggest that not all control variables that are significantly correlated to a supposed accounting effect are necessary to explain that effect. Moreover, variables reflecting accounting information are not individually sufficient to explain the effect under investigation.Research limitations/implicationsThe study contributes to set-theoretic approach to accounting research and echoes the call for a diversity of research approaches in accounting.Practical implicationsThe study may have practical implications for various accounting information users, including investors, financial analysts and financial market and accounting disclosure regulators as well. Indeed, accounting information users should consider the importance of the combined effect of multiple pieces of accounting information in the users' positions on firms' stocks. Understanding what might be the relevant combinations of accounting information associated with a given organizational context is a key in making compelling accounting-informed decisions. Such knowledge can inform reflections of accounting disclosures and regulations on the combined effects of several accounting information.Originality/valueFirst, the study adds to the newly introduced set-theoretic approach to empirical accounting. The study also resonates with the call for a diversity of research approaches in accounting. The authors empirically demonstrate that significant correlation between accounting information and its effects does not connote “necessity” or “sufficiency,” which is rather revealed by qualitative comparative analysis (QCA). Such complementarity can help accounting researchers to carry out (1) new investigations of accounting's earlier hypotheses or propositions and (2) investigations of new accounting hypotheses/propositions deriving from existing accounting theories and (3) to explore new relationships between accounting phenomena. Second, the study incidentally contributes to value relevance literature in terms of contextualization of the relevance of accounting information. Specific to the African capital markets, the study complements the few recent studies on the Bourse Régionale des Valeurs Mobilières d’Abidjan (BRVM).
This paper investigates if planning and cost controls and strategically aligned performance indicators (SAPI) are necessary and sufficient conditions to achieve a high level of organizational performance (OP). This article fills a gap in research by investigating elements of the management control system as necessary and sufficient conditions to achieve high levels of OP. Our findings show the reduced importance of planning controls and the great importance of aligning priorities and indicators to achieve high levels of performance. The paper is helpful for the practitioners that have to choose what kind of management controls are priorities to achieve high levels of performance. Management control frameworks are helpful for the literature and the practice. Still, the practitioners cannot implement the whole set of these components, considering the restriction of time and contingency aspects. The companies must choose what kind of management controls they have to implement, considering the goal of achieving performance. We used a quantitative methodology based on contingency theory in a survey of 89 Brazilian firms. The relationships were tested using partial least squares structural equations modeling (PLS-SEM), and necessary condition analysis (NCA) was applied to identify the management controls that are sufficient and necessary conditions for superior performance. The results of our study suggest that a high level of strategically aligned indicators is necessary to achieve a high level of performance. Results also suggest the importance of aligning strategic priorities with appropriated performance indicators, primarily defended in the normative (balanced scorecard) and empirical literature.
RESUMO Este artigo investiga se os controles de planejamento, de custos e indicadores de desempenho estrategicamente alinhados (IDEA) são condições necessárias e suficientes para alcançar um alto nível de desempenho organizacional (DO). Ele preenche uma lacuna na pesquisa ao investigar elementos do sistema de controle gerencial como condições necessárias e suficientes para alcançar altos níveis de DO. Os achados mostram uma menor importância dos controles de planejamento e uma maior importância de alinhar prioridades e indicadores para alcançar altos níveis de desempenho. Este artigo é útil para os profissionais que precisam escolher que tipo de controles gerenciais são prioritários para alcançar altos níveis de desempenho. As estruturas conceituais de controle gerencial são úteis para a literatura e a prática; todavia, os profissionais não conseguem implementar todo o conjunto desses componentes, considerando a restrição de tempo e aspectos contingenciais. As empresas têm que escolher quais tipos de controles gerenciais devem implementar, objetivando alcançar desempenho. Como método de pesquisa foi adotada uma abordagem quantitativa baseada na teoria da contingência com uma amostra de 89 empresas brasileiras. As relações foram testadas usando modelagem de equações estruturais por mínimos quadrados parciais (partial least squares structural equations modeling - PLS-SEM), e a análise de condição necessária (necessary condition analysis - NCA) foi aplicada para identificar os controles gerenciais que são condições suficientes e necessárias para um desempenho superior. Os resultados do estudo sugerem que um nível alto de indicadores alinhados estrategicamente está associado à obtenção de alto nível de desempenho. Também sugerem a importância de alinhar prioridades estratégicas com indicadores de desempenho adequados, defendidos principalmente na literatura normativa (balanced scorecard) e empírica.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
Contact Info
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Product
Resources
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.
