The traditional image of a CFO is one of glorified "bean counter", whose primary responsibility is to prepare the books and report back to higher level management on the overall financial risk and performance of the enterprise. However, rapid globalization of Australian business, the impact of information technologies, changing business and organizational structures, the growing importance of strategic alliances, and a new focus on value creation has challenged this traditional role of the CFO. The importance of the CFO in performing a more integrated and proactive ‘strategic’ and ‘value creation’ role pervades the professional literature.
This study reports the results of an attitudinal survey of 241 CFOs drawn from the private and public sectors. The survey findings indicate that whilst CFOs still rate traditional aspects of their role and function quite highly, however value creation and strategic activities and priorities are gaining ascendance. Further, the results show that the value creating activities of CFOs are more directly related to overall strategy contributions within the organization than with direct measures of organizational performance, such as EPS and ROA. The study contributes to a greater understanding of the desired skill sets, knowledge and professional responsibilities of tomorrow’s accountants.
onceptualising organisational performance has received considerable attention in both the management accounting and Not-for-Profit (NFP) literatures, yet achieving consensus on what constitutes “organisational performance” has been difficult. The unique character of NFPs, as well as the considerable size and influential impact of this sector in Western Economies prompts a call for a better understanding of the nature of performance in such organisations. Some argue that NFPs would benefit from adopting a similar perspective on organisational performance to that of their commercial counterparts; whilst others argue that NFPs are sufficiently unique such that commercial sector concepts are either inappropriate or extremely difficult to apply. This paper argues that these apparently conflicting views about how organisational performance might be conceptualised within the NFP sector are quite reconcilable. Conclusions presented may provide guidance for researchers and practitioners in considering the nature of performance in this important sector.
We examined the relationship between R & D expenditure and the profitability in the pharmaceutical industry by using annual size-adjusted R & D and advertising budgets as explanatory variables on standardized excess abnormal returns.
The results show that, on average, the market does not react significantly to information on innovations or innovative activities in the pharmaceutical industry (average abnormal returns is -0.0101 with a t-value of 0.118). Furthermore, there is no relationship between excess abnormal returns and annual R & D budgets (coefficient is -0.00123 with a t-value of -1.26), and excess abnormal returns and annual advertising budgets (coefficients -0.00126 with a t-value of -0.84).
Adherents to the Theory of Constraints (TOC) have made clear their antipathy to precise cost accounting. We argue that they have something in common with early writers who were concerned about the allocation of costs. However, given the lack of attention to the long-term in TOC we explore, using an action research approach over a four year period, the relevance of TOC for both long-term and short-run decisions. We argue that TOC does meet short-run decision relevance although it is not entirely adequate for longer term decisions.
Freudian pyschology has some interesting insights into various ego difence mechanisms that sometimes come into play when an individual is faved with a trhea to their self esteem. These mechanisms include concepts like rationalisation and deinal. These mechanisms can seriously interfere with an attempt be the Management Accountant to discuss and evaluate a sitaion and advice on possible corrective action.
This paper will discuss some of the ego defence mechanisms that often come into play and provide the management accountant insights into why they might have difficulty in discussing or evaluating unfavourable budget variances that threaten managerial self esteem.
In this paper we discuss the importance of management accounting information for the owner-managers of small and medium enterprises (SMEs). We firstly, trace developments in management accounting thoughts and theories, and this is followed by the nature of SMEs and their demand for management accounting information. We then discuss the pressures on small accounting practitioners (SAPs) and their ability to meet SMEs’ management accounting needs. The paper ends with opportunities, challenges and future directions for SMEs, SAPs, and researchers in management accounting and control systems (MACS)