1Associate Professor of accounting, Faculty of financial sciences, Kharazmi University, Tehran, Iran
2Assistant Professor of agricultural engineering, University of Tehran, Tehran, Iran
3MSc of accounting, Faculty of financial sciences, Kharazmi University, Member of IMAA and IFEA, Tehran, Iran
In many countries, particularly developing countries, economic reforms, especially privatization, are considered as a strategic approach. The growth of the government decreases the competition in the market, and so, some fields should be privatized in order to create the competition. By moving towards privatization and the changes in competition methods and the presentation of the World Trade, the importance of management accounting tools (MATs) is more pronounced. This research is based on the Contingency Theory that was confirmed in Tehran’s Stock Exchange (TSE). This paper investigates the moderating effect of industry competition (IC) on relationship between privatization, financial performance and using of MATs in TSE. MATs data were collected through questionnaires, the competition data were obtained from financial statements information of 48 firms listed in TSE and privatization data were obtained from privatization organization website (IPO). The results indicate a positive relation between privatization and MATs in firms listed in TSE which industry competition, as a moderator variable, enhances this relation. Considering the general policies of principle 44 to increase the competition, it is used as a moderator variable in this study of this study show that privatized companies, in today’s too competitive situations. The result showed which privatization and Industry Competition lead to the companies use the MATs more than before. Hence these companies be used to more MATs because of industry competition that was established by privatization in TSE. Finally, the variables of the model can explain 93.2% of MATs
Abdulla A. R. Ali, (2014), Privatization and Financial Performance in Developing Countries: Reality and Myth, International Journal of Business and Management; Vol. 9, No. 4, PP 115-123
Abernethy, M. A., & Lillis, A. M. (2001). Interdependencies in organizational design: A test in hospitals , Journal of Management Accounting Research, 13(1), 107–129.
Amir, A.M., Ahmad N.N.N. & Mohamed, M.H.S. (2010), "An investigation on PMS attribute in service organizations in Malaysia", International Journal of Production and Performance Management, Vol. 59, No.8, pp.734-756
Anderson, Shannon W. and William N. Lanen. (1999), Economic transition, strategy and the evolution of management accounting practices: The case of India. Accounting, Organizations and Society.
Anderson, S. W. (1995). A framework for assessing cost management system change: the case of activity-based costing implementation at General Motors, 1986–1993, Journal of Management Accounting Research, 7, 1–51.
Anderson, S. W., & Young, S. M. (1999), The impact of contextual and process factors on the evaluation of activity-based costing systems, Accounting, Organizations and Society, 24, 525–559.
Asif Ahmed, 2010. “Fifty Two Tools of Management Accounting”, available at: WWW.SSRN.COM.
Azar Adel, Eslamjoo Ali (2012), Comparing the function of ceded companies to private sector and non-governmental public sector in Tehran stock exchange market (being studied: cession after notifying general policies of principal 44), Islamic Financial Research Magazine, first year.
Baines, A. and Langfield-Smith, K. (2003), Antecedents to management accounting change:a structural equation approach, Accounting, Organizations and Society, 28(1), 675–698.
Barzegar, Morteza ,(2015), Investigating the relationship among privatization, management accounting tools (MATs) and financial performance of the firms listed in Tehran’s stock Exchange ,MSc thesis of accounting , Kharazmi University (Previous "University of Economic Sciences" (UES)), summer.
Braziel Carlos & E.Thal Alfred & D.Weir Jeffrey (2007); "Evaluating the Effectiveness of Utility Privatization Efforts", Journal of Facilities Management.
Chi jin and padegett carol,(2008), The performance and long-run charestritic of the chines Ipo market,”ISMA center working paper.
Chenhall،Langfield-Smith (1998), "Adoption and benefits of management accounting techniques and practices: An Australian study", Management Accounting Research.
Chin, W.W., Marcolin, B.L., & Newsted, P.R. (2003), A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study, Information Systems Research, 14(2), 189-218.
Chung, S.-H., Su, Y.-F. And and Yu-Ju, S. (2012), Broad scope management accounting system and managerial performance: The impact of role ambiguity and functional difference, African Journal of Business Management, 6(30), 8873-8878.
Daneshfard, Karamollah, Vahdani, Kaveh & Aghaz, Asal, (2010), Evaluating the role of applying balanced scorecard in improving organization function, supreme leader and education management of Islamic Azad University, Garmsar unit.
Dehghan, R , Khodamipour,A , Sadeghi, Z, (2015), Studying Effect of Privatization on Application of Management Accounting Tools and Performance of National Iranian Copper Industries Company, International Journal of Economy, Management and Social Sciences, Vol(4), No (1), pp. 58-66.
Dianati Deilami, Zahra, Alambeigi, Amir, Barzegar, Morteza, (2016), Investigating the relationship among privatization, management accounting tools and financial performance of the firms listed in Tehran stock Exchange, Journal of empirical studies of financial accounting.Fall, No51.
Dianati Deilami, Zahra, Alambeigi, Amir, Barzegar, Morteza, (2016), Investigating the Relation between Applying Advanced Management Accounting Tools and Economic Value Added (EVA), journal of management accounting, NO 30, Fall,pp 87-96.
Fafaliou Irene & Donaldson Jhon (2007); "The Contribution of Privatization to Welfare", Journal of International Economics Research.
Galyan Grygorenko & Stefan Lutz (2007); "Firm Performance and Privatization in Ukraine", Journal of Econimic Change, Vol. 40, pp. 253-266.
Ghasemi Reza, Noor Azmi Mohamad, Karami Meisam, Norkhairul Hafiz Bajuri, Asgharizade Ezzatollah,(2015), The Relationship among Strategy, Competition and Management Accounting Systems on Organizational Performance, European Online Journal of Natural and Social Sciences,pp565-581.
Gordon, Lawrence A. and Katherine J. Silvester (1999), Stock market reactions to activity-based costing adoptions, Journal of Accounting and Public Policy 18: 229 251.
Ghiasvand, Noormohammad, (2011), The barriers of enforcing principle 4 of constitution in financial instriruions, Business Management Periodical, No 10, second year.
Gudarzvand Chegini, Mehrdad & Mehdi Mirzad Zare (2010), The effects of ceding (privatization) on efficiency (Telecommunication Company of Gilan), business survey, No 40.
Hassass Yegane, Yahya; Dianati Deilami, Zahra; Noroozbeygi, Ebrahim; (2011), Evaluating management accouting in companies accepted in Tehran stock exchange, Management Accounting Magazine, fourth year, No 8.
Jones, C. (1985), An empirical study of the evidence for contingency theories of management accounting systems in conditions of rapid change, Accounting, Organizations and Society.
Khodamipour, Ahmad; Talebi, Roghaye; (2010), Evaluating usage of management accounting tools by managers of productive companies accepted in Tehran stock exchange , Accounting Knowledge Magazine, first year, No 2, autumn.
Klammer, Thomas. 1973. The association of capital budgeting techniques with firm performance, The Accounting Review 48(2): 353-364.
Libby, T., & Waterhouse, J. H. (1996), Predicting change in management accounting systems , Journal of Management Accounting Research, 8, 137–150.
Muftah S. Abugalia, (2011), The Influence of Business Environment on the Effectiveness of Management Accounting Practices: Evidence from Libyanb Companies.
Norouzi E, H Panahian , GH Aghajani Mazandarani,(2015), Evaluation the relationship between competition and management accounting systems change and performance of companies, Journal of Novel Applied Sciences,pp331-339.
Naceur, S.B., Ghazouani, S., & Omran, M. (2007), The performance of newly privatized firms in selected MENA countries: The role of ownership structure, governance and liberalization policies, International Review of Financial Analysis.
Nevitt, J., & Hancock, G.R. (2001), Performance of bootstrapping approaches to model test statistics and parameter standard error estimation in structural equation modeling. Structural Equation Modeling, 8(3), 353-377.
Nunnally, J.C., & Bernstein, I.H. (1994), Psychometric theory. New York, NY: McGraw-Hill.
Phadoongsitti Monika (2003), The role of managerial accounting in emerging economics : An empirical study of Thailand.
Perkoopenko, Joseph (2001), Privatization Management, translated by Hosein Akbari & Parvane Davari, first edition, Tehran: Ashna Publication.
Porter, M. (1980), "Competitive Strategy: Techniques for analyzing industries and competitors", The Free Press.
Porter, M. (1985), "Competitive Advantage: Creating and sustaining superior performance", The Free Press.
Safazade Parizi, Gholamreza, (2002), Privatization and its performance from 1989 to 2001 in the country, economic bulletin.
Salar, Jamshid, Gholami Avati, Ramezan, (2011), Evaluating the relation of market orientation and the performance of food stock companies, executive management bulletin, third year, No 6.
Silvari, Mohammad Reza, (2000), Evaluating the relationship between ownership type and the performance of companies accepted in Tehran stock exchange, M.A thesis, Tehran University.
Shields, M. D. (1995), An empirical analysis of firms' implementation experiences with activity-based costing, Journal of Management Accounting Research, 148–166.
Sheshinski, E. and Calva, L.F.(2002); "Privatization and Its Benefits: Theory, Evidence and Challenges", Journal of Energy Policy.
Talebnia, Ghodrat & Mohammadzade Salte, Heydar, (2005), The effect of privatization on the companies accepted in Tehran stock exchange in their shares’ output, economic research, No 19.
Velayutham S.K. & Abdel-Maksoud, A. (2007), "Non-financial performance measurement and management practices in manufacturing firms: A comparative international analysis", Studies in Managerial and Financial Accounting, Vol.17, pp.253-271.
Zahirul Hoque ,(2011), The relations among competition, delegation, management accounting systems change and performance: A path model, Advances in Accounting, incorporating Advances in International Accounting ,27 , 266–277.
Zahirul Hoque, & James, W. (2000), Linking size and market factors to balanced scorecards Impact on organizational performance, Journal of Management Accounting Research, 12, 1–17