Contabilidade Gerencial: Comparação entre Paises

© Le

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Inter

natio

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Unter

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ng, W

WU

Müns

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Prof. Peter Kajüter

ANPCONT Annual Conference, Florianópolis, 4th June 2012

Contabilidade Gerencial: Comparação entre Paises

© Le

hrstu

hl für

Inter

natio

nale

Unter

nehm

ensre

chnu

ng, W

WU

Müns

ter

Prof. Peter Kajüter

ANPCONT Annual Conference, Florianópolis, 4th June 2012

Comparative Management Accounting – Achievements and Perspectives

3

Agenda

© Peter Kajüter

1. Motivation

2.

4.

3.

Comparative Management Accounting Research

Example: Cost Accounting Systems in Germany and Japan

Conclusions and Outlook

4

Motivation

“It‘s a small world of management accounting practices” Granlund/Lukka 1998

“Japanese costing has been considered quite different from that found in the West.” Yoshikawa 2001

“Lessons from German Cost Accounting” Management accounting and controllership practices are more highly developed in German-speaking countries … than in the rest of the world. Sharman, Strategic Finance 2004

“Apparently straightforward terms tend to be defined differently in different countries.” Amat et al. 1999

© Peter Kajüter

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Motivation

Example: USA vs. Germany

consumption of resources in a period to achieve an objective

Aufwand

neutraler Aufwand (betriebsfremd, periodenfremd,

au ß ergew ö hnlich)

kostengleicher Aufwand (Zweckaufwand)

aufwandsgleiche Kosten (Grundkosten)

kalkulatorische Kosten (Zusatz - , Anderskosten)

Kosten

expenses

neutral expenses (non-operating, extraordinary,

different period) expenses = costs

costs = expenses imputed costs

costs

German definition of “costs”

US definition of “costs”

“cost is the monetary value of goods and services expended to obtain current or future benefits. … costs reflect an outflow of resources, such as cash, …” (Atkinson et al. 2007, p. 28)

costs

expenses

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Motivation

Example: Grenzplankostenrechnung (“GPK”) in German and US firms

“While many U.S. businesses have implemented ERP systems like SAP R/3, most don‘t use their full functionality for costing purposes. In fact, German companies I talked with have had great difficulty getting their U.S. affiliates to use GPK methods. DaimlerChrysler in Germany, for example, has a detailed GPK system that‘s part of a long tradition of sophisticated costing methods in the Daimler side of the company. But Chrysler doesn‘t use GPK. It has a different culture, which is common in the U.S., that doesn‘t see the need for so much detail.” (Krumwiede 2005, p. 31)

© Peter Kajüter

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Motivation

Comparative Management Accounting

© Peter Kajüter

Theoretical relevance 1. Enlarge our knowledge base

(e.g. impact of culture, education etc. on management accounting practices)

2. Substitute for experimental conditions

Practical relevance 1. Enhance national management

accounting practices (stimulate innovation)

2. Balance standardization and

differentiation in management accounting of MNC

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Agenda

1. Motivation

2.

4.

3.




© Peter Kajüter

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There are four approaches to comparative management accounting research.

Parochial research

Impressionistic research

Replicative research

Comparative research

Originally designed and conducted in one country Comparisons by meta-analysis

Conclusions based on impressions rather than on facts

Studies initially designed and conducted in one country are replicated in another

Studies designed to be conducted in parallel in at least two countries

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National specifics of management accounting practices can prevail on different levels.

Level Perspective Focus of analysis Example 1 Macro-perspective Adoption rate and

general assessment Adoption of ABC

Perceived usefulness of ABC

2 Mezzo-perspective Targets and conceptual design

Decision facilitating, decision influencing ...

Complexity of cost accounting systems

3 Micro-perspective Practice per se, Type of use, Meaning

Way of using ABC information

Perception of ABC by organisational actors


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National specifics vs. international convergence of management accounting practices


History and Culture

Education

National Financial Reporting

Economic and legal environment

Standardised ERP Systems (eg SAP)

Global Consultancy Industry

IFRS

Influence of MNC on their Subsidiaries

Contingency Theory

Cultural Contingency Approach

Societal Effects Approach

New Institutionalism

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National specifics vs. international convergence of management accounting practices


Contingency Theory

Cultural Contingency Approach

Societal Effects Approach

New Institutionalism

?

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Comprehensive review of prior empirical research (1978-2010)

-5

0

5

10

15

20

25

30

35Number of publications (total)

Number of Hofstede-inspiredpublicationsStudies on cost accounting

1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 - - - - - - - - - - - 1980 1983 1986 1989 1992 1995 1999 2001 2004 2007 2010

148 papers published Most often the US is compared with other countries, emerging economies are underrepresented. 70% survey research Majority with a broad focus

© Peter Kajüter

Source: Moeschler (2012), p. 59.

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Methodological issue Prior comparative research Suggested improvements

Conceptual and response equivalence

Findings potentially distorted Shortcomings hardly reported

Objective characteristics 7-point-Likert scale

Control variables Hardly used (even company size) Use of control variables

Methodological perspective Lack of theory Use of several theoretical

perspectives

Statistical methods for data analysis Simplistic Multiple regression analysis


Little theoretical and practical contribution due to shortcomings in methodological issues.

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Examples

Australia Japan % %

Job order costing 30 40 Process costing 52 46 Hybrid costing 9 27 Batch costing 15 4 Product life cycle costing 5 13 Activity based costing (ABC) 23 2

Responses: 221 in Australia, 215 in Japan Source: Wijewardena/de Zoysa 1999, p. 63

Bhimani et al. (2007): adoption and success of ABC in seven countries

Wijewardena/de Zoysa (1999): adoption of cost accounting practices in Australia and Japan

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Agenda

1. Motivation

2.

4.

3.




3.1 Research Questions and Hypotheses

3.2 Research Design

3.3 Empirical Results

© Peter Kajüter

Funded by IMA and Melco Foundation

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Cost Accounting Systems in Germany and Japan

Main research objective Research questions 1. Descriptive research question:

- To what extent do cost accounting systems differ between Germany and Japan?

2. Explicative research question:

- Why do German and Japanese cost accounting systems differ?

Contribution 1. Sensitize management accountants in MNC for cross-national differences in

cost accounting systems

2. Evidence for the relative importance of country vs. industry differences in

cost accounting systems

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Review of Prior Research

Characteristics of the Studies ● 17 comparative studies on cost accounting. ● Predominantly application rates of instruments (e.g., ABC) were addressed. ● Most studies are with Anglophone participation.

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Theoretical Perspectives and Hypotheses Development

Theoretical perspective

Cost accounting systems

Institutional environment of cost accounting

National culture

Cultural contingency approach (Hofstede 2001, Bhimani 1999)

Societal effects approach (Maurice 1979, Sorge and Warner 1986)

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Implications of national culture and institutional envionment on cost accounting

● Germany

● Japan

Long-term orientation

Less cost information required for performance evaluation, more emphasis on feedforward control

Seniority system

Collectivism Permanent employment

General and practical qualification of cost accountants

Culture Cost accounting environment Purpose of cost accounting

Individualism

Uncertainty avoidance

Responsibility accounting Motivate responsible persons to operate efficiently

Enhance decision facilitating

Preference for comprehensive cost information

Strict rules that govern workplace behavior

Culture Cost accounting environment Purposes of cost accounting

Specialization and theoretical education of cost accountants

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● Cross-national differences in the institutional environment of cost accounting

H1a: The degree of specialisation of cost accountants differs between Germany and Japan. H1b: The extent of theoretical knowledge of cost accountants differs between Germany and Japan. H1c: The relationship of cost accounting towards financial and management accounting differs between Germany and Japan.

Hypotheses

© Peter Kajüter

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Hypotheses

● Cross-national differences in the conceptual design of cost accounting systems

H2a: German companies run more complex cost accounting systems than their Japanese counterparts. H2b: German companies run timelier cost accounting systems than their Japanese counterparts.

Cost-benefit considerations when implementing cost accounting systems are likely to be influenced by national culture and the institutional environment.

© Peter Kajüter

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Agenda

1. Motivation

2.

4.

3.





3.2 Research Design


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Research design

Survey

Population

- Industries: food and beverage, mechanical engineering, hospital - Firm size: between 250 and 2,000 employees - Period of data collection: October – December 2010

Sample - Returned questionnaires: 480 in Germany and 146 in Japan - Response rate: 36.1% and 12.3% respectively - Nearly representative sample - No non-response bias

Data collection process

- Germany: First contact by telephone; online questionnaire was sent to participants thereafter - Japan: Written questionnaire was sent to accounting department.

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Sample

Japanese sample (n=146) Adjusted German sample (n=292) German sample (n=480)

Mechanical engineering 45%

Hospitals 21%

Food and beverage 21%


Hospitals 45%

● Similar procedure for company size:

Elimination of industry and company size biases



Hospitals 21%


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Dependent variables: systems’ complexity and timeliness

Objective and multifarious measurement of cost accounting systems to ensure conceptual equivalence

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Independent variables

● Specialization:

● Theoretical knowledge:

Functional specialisation of cost accountants

Distribution of cost accountants‘ workload

Sources of knowledge

Independent variables to explain cross-national differences:

● Relation MA / FA

● Context factors

● Cost accounting objectives

Industry

12 indicators, measured on a 7-point Likert scale

Company size

Control variables:

IT systems quality

Top management support

Responsible bodies for cost accounting

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Agenda

1. Motivation

2.

4.

3.





3.2 Research Design


© Peter Kajüter

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Empirical results: Country Specifics

*** (**; *) statistically different at 99% (95%; 90%) confidence level (two-tailed).

H1a

Functional specialication of cost accountants

To what extent do the following characteristics apply to your company’s cost accountants? (1=not at all; 7=completely) Germany Japan

Highly specialized exclusively in cost accounting 3.62 *** 3.17 Qualified to enhance and run cost accounting systems 5.03 *** 4.08 Rather qualified for requirements in financial than in managerial accounting. (R) 5.06 *** 3.81

H1a: The degree of specialisation of cost accountants differs between Germany and Japan.

© Peter Kajüter

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Empirical Results: Country Specifics


0%20%40%60%80%

100%

University Professionalbodies

In-house training At work 'learningby doing'

Other

GermanyJapan

Sources of knowledge

H1b

H1b: The extent of theoretical knowledge of cost accountants differs between Germany and Japan.

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5. Empirical Results: Country Specifics


0%

20%

40%

60%

80%

Specificdepartment for cost

accounting

Managementaccountingdepartment

Accounting/Finance

department

Operationaldepartments

Other

GermanyJapan

34%

53%

38%

23%

29%

24%

Japan

Germany

Distribution of cost accountants' workload

Management accounting Financial accounting Other

Responsible bodies for cost accounting

H1c

H1c: The relationship of cost accounting towards financial and management accounting differs between Germany and Japan.

© Peter Kajüter

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Empirical Results: Country Specifics

The institutional environment differs internationally: German cost accountants are more specialized and have more theoretical knowledge.

German cost accountants have a higher potential to run complex and timely cost accounting systems.

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Empirical Results: Complexity of cost accounting systems

German firms run more complex systems.

H2a:


0,00

0,20

0,40

0,60

0,80

1,00

Number ofcost types***

Distinctionfixed and

variable costs

Imputedcosts***

Timereference of

costs*

Number ofcost

centers*** Costvariance

analysis*** First stageallocation***

Secondstage

allocation

Productcosting

Operatingincome

statement***

Contributionmargin

accounting***

Germany (mean = 0.576***) Japan (mean = 0.427)

© Peter Kajüter

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Empirical Results: Timeliness of cost accounting systems

German firms run more timely systems.


H2b: 0,00

0,20

0,40

0,60

0,80

1,00

Distinctionfixed and

variable costs

Standardcosts**

Costvariances***

Cost rates forsupport cost

centers*

Cost rates foroverheadallocation

bases

Product costs

Operatingincome

statement ***

Germany (mean = 0.501***) Japan (mean = 0.411)

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Empirical Results: Regression analysis

Dependent variable Cost accounting complexity Cost accounting timeliness R 0.629 0.401 R² 0.396 0.161 adjusted R² 0.379 0.137 F 24.089 6.737 Significance 0.000 0.000 VIFmax 2.174 2.099 Durbin-Watson statistic 2.028 1.999 Independent variables Standardized coefficients (Beta) Standardized coefficients (Beta) Country (0 = Germany; 1 = Japan) -0.509 *** -0.238 *** Company size 0.176 *** 0.045 Industry food and beverage 0.146 *** 0.297 *** Industry mechanical engineering 0.198 *** 0.227 *** Factor IT systems quality 0.006 0.134 ** Factor top management support 0.111 ** 0.001 Factor decision facilitating objectives 0.050 -0.038 Factor decision influencing objectives 0.044 0.117 * Factor cost planning objectives 0.089 -0.026 Factor cost control objectives 0.087 0.087

© Peter Kajüter

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Agenda

1. Motivation

2.

4.

3.




© Peter Kajüter

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CMA research is complex, but offers many opportunities.

CMA research can enhance our knowledge base and provide practically relevant insights.

Research Opportunities

Traditional and emerging economies

Adaptation of “Western” management accounting practices in emerging economies? Novel ideas from management accounting practices in emerging economies?

Management control systems as a package

Technical control vs. behavioural control

Behavioural aspects (level 3)

Use of management accounting information

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Contact

Prof. Dr. Peter Kajüter

University of Münster Chair of International Accounting

Universitätsstr. 14-16 48149 Münster

Germany Tel.: +49-251-83-22840

Email: [email protected]

© Peter Kajüter

Technology

Contabilidade Gerencial: Comparação entre Paises