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Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2023) 1.2 Q4
Journal Citation IndicatorTM (2023) 0.33 Q3
Received: 2021-05-15  |  Accepted: 2021-07-29  |  Published: 2021-09-30

Title

The role of accounting information in decision-making and companies’ sustainability development: the Portuguese accountants’ perspective


Abstract

The rise of the concept of sustainability reveals a pivotal shift in market thinking, thus pushing companies to reevaluate the method in conducting their decision-making processes. The main objective is to investigate the role of accounting information in decision-making from the point of view of Certified Accountants. Specifically, it aims to analyse the relationship between the companies’ size, the usefulness of Financial Information (FI) and Management Control Information (MCI), and the company's economic performance. Supporting evidence is provided by analysis of an online questionnaire survey of professionally qualified accountants working in Portugal. We used structural equation modelling in the analysis of causal relationships between different constructs. The results show the size of the companies and their performances are directly related, so it is the larger companies that have the best economic performance. However, to improve the company’s performance, it has been proven that the use of FI in decision-making is not sufficient, so the use of MCI is decisive for a good economic performance. This study highlights the importance of producing useful FI and MCI to assist decision-making and contribute to economic sustainability.


Keywords

certified accountants, financial information, management control, company performance, decision-making, contingency theory, innovation


JEL classifications

M10 , M41


URI

http://jssidoi.org/jesi/article/883


DOI


Pages

486-501


Funding

INCORE - HEI Initiative - Innovation Capacity for Higher Education in Europe's Outermost Regions

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Monteiro, Albertina Paula
Polytechnic Institute of Porto, Porto, Portugal https://www.ipp.pt
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Cepêda, Catarina
Polytechnic Institute of Porto, Porto, Portugal https://www.ipp.pt
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Silva, Amélia Ferreira da
Polytechnic Institute of Porto, Porto, Portugal https://www.ipp.pt
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Leite, Eduardo
University of Madeira, Funchal, Portugal https://www.uma.pt
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Camacho, Élvio
University of Madeira, Funchal, Portugal https://www.uma.pt
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Journal title

Entrepreneurship and Sustainability Issues

Volume

9


Number

1


Issue date

September 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References