Strategic Governance and Management Accounting: Evidence From a Case Study

Ratnatunga, Janek; Alam, Manzurul

doi:10.1111/j.1467-6281.2011.00344.x

Cited by 20 publications

(21 citation statements)

References 70 publications

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“…Our analysis indicated that the accumulation of reserves is financially desirable in order to ensure ongoing financial sustainability. Based on these findings, we highlighted the need for NFP boards to develop a reserves strategy (Feenstra and van Helden ; Ratnatunga and Alam ) as outlined by the Charity Commission (, ), and to communicate that strategy to stakeholders (Ryan and Irvine ).…”

Section: Resultsmentioning

confidence: 98%

“…For regulators, it provides evidence‐based research that facilitates an understanding of the financial sustainability of the sector and of the contribution of reserves to achieving this. In doing this, it opens up further possibilities for the contribution management accountants may play in providing relevant financial analysis to boards and managers (Ratnatunga and Alam ) in order to assess the current level of reserves and determine what constitutes a level appropriate for ongoing operational sustainability (Charity Commission , ). We believe this will go some way to addressing the reserves dilemma we identified at the start of this paper, that is, the tension between the need to accumulate reserves and the need to expend an appropriate amount on mission‐oriented programs.…”

Section: Resultsmentioning

confidence: 99%

“…This illustrates the responsibility of NGO and other NFP boards to develop a reserves policy and to monitor their organisations’ level of reserves over time. It is recognised in the corporate world that boards are ‘ultimately responsible for ensuring that the organisation is able to respond to changing circumstances’ (Ratnatunga and Alam : 369). Consequently, in an era of corporate‐style demands for NFP governance and accountability, the development of a policy about reserves’ accumulation and the achievement of a desirable level of reserves is a significant issue for NFP boards and decision makers (Feenstra and van Helden ).…”

Section: Data Analysis and Findingsmentioning

confidence: 99%

“…). In all these scenarios, the board plays an important role in guiding an organisation's reserves policy (Feenstra and van Helden ; Ratnatunga and Alam ), while taking into account public perceptions about reserves.…”

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confidence: 99%

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Spenders or Savers? An Examination of the Reserves of Australian NGOs

Booth

Irvine

Ryan

et al. 2017

Australian Accounting Review

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Not -for-profit (NFP) organisations experience a tension between societal perceptions about maximising mission expenditure on one hand, and their need to accumulate reserves to ensure longer term financial sustainability on the other. While studies have examined the level of reserves in UK and US contexts, there is little Australian research or guidance about what constitutes an appropriate level of NFP reserves. This paper examines the levels and implications of the reserves of 52 Australian NFP non-governmental organisations (NGOs) over eight years, identifying two groups. Spenders, with less than three months of expenditure in reserve, were more financially vulnerable, had higher levels of debt, yet spent a relatively greater proportion of their revenue on mission-related activities than savers. Savers, with more than three months' reserves, demonstrated a greater proportion of revenue from fundraising, proportionately greater equity levels, and higher returns on assets. Providing unique insights into the financial reserves of Australian NGOs, this empirical study contributes to existing NFP literature on reserves, which to date has focused primarily on US and UK contexts. Further, we propose that by developing, monitoring and communicating their reserves' strategies, NFP boards and managers will be able to improve their organisations' financial sustainability and manage societal perceptions about reserves.

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Section: Resultsmentioning

confidence: 98%

Section: Resultsmentioning

confidence: 99%

Section: Data Analysis and Findingsmentioning

confidence: 99%

mentioning

confidence: 99%

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Spenders or Savers? An Examination of the Reserves of Australian NGOs

Booth

Irvine

Ryan

et al. 2017

Australian Accounting Review

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“…Prior studies have mainly focused on the role of financial reporting and auditing in corporate governance, rather than management accounting. Ratnatunga and Alam (2011) also pointed out that the utilization of management accounting practices in strategic governance is barely mentioned in the relevant empirical studies. Thus, more studies are required regarding the influence of management accounting practices on corporate governance.…”

Section: Resultsmentioning

confidence: 99%

Impact of the Accounting Information System on Corporate Governance: Evidence from Turkish Non-Listed Companies

Uyar¹,

Güngörmüş²,

Kuzey³

2017

AABFJ

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Corporate scandals in the early 2000s have demonstrated how accounting and auditing failures, together with the abuses of managers have the ability to create major problems. In order to avoid future scandals, this study investigates the association between the accounting information system and corporate governance. We hope that these findings will contribute towards the enhancement of good corporate governance created by the accounting function of business organizations. The results of empirical analyses indicate that bookkeeping, financial reporting, and the budgeting system have a positive impact on the corporate governance level, whereas the adoption of Turkish Accounting / Financial Reporting Standards do not. Thus, in order to foster corporate governance, managers should establish internal reporting procedures as well as internal control and monitoring devices before attempting external control through independent auditing. AbstractCorporate scandals in the early 2000s have demonstrated how accounting and auditing failures, together with the abuses of managers have the ability to create major problems. In order to avoid future scandals, this study investigates the association between the accounting information system and corporate governance. We hope that these findings will contribute towards the enhancement of good corporate governance created by the accounting function of business organizations. The results of empirical analyses indicate that bookkeeping, financial reporting, and the budgeting system have a positive impact on the corporate governance level, whereas the adoption of Turkish Accounting / Financial Reporting Standards do not. Thus, in order to foster corporate governance, managers should establish internal reporting procedures as well as internal control and monitoring devices before attempting external control through independent auditing. JEL Classification: M40, G34.

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The Role and Position of Accountancy

Bergant¹

2021

Accountancy and Social Responsibility

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Strategic Governance and Management Accounting: Evidence From a Case Study

Cited by 20 publications

References 70 publications

Spenders or Savers? An Examination of the Reserves of Australian NGOs

Spenders or Savers? An Examination of the Reserves of Australian NGOs

Impact of the Accounting Information System on Corporate Governance: Evidence from Turkish Non-Listed Companies

The Role and Position of Accountancy

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