The role of financial accountability control in improving financial performance

Purpose – This study aims to describe the effect of diversity of knowledge and financial capabilities on accountability for behavior control and improvement of financial performance. Design/methodology/approach – The population in this study were all branches of the Baitul Maal Wat Tamwil Sharia Savings and Loans Cooperative (KSPPS BMT) in Central Java. The sample used purposive sampling to obtain 146 respondents. Data were analyzed using the Structural Equation Modeling (SEM) analysis technique with the application of Analysis Moment of Structural (AMOS 24)


Introduction
Behavior accounting is a derivation of accounting and behavioral science, which explores the application of behavioral science views in accounting (Mistry et al., 2014).The purpose of behavior accounting is to understand, explain, and predict human behavior in accounting situations or contexts (Malmi & Granlund, 2009).Behavior Accounting develops an understanding of both the cognitive (perceptual) and affective (emotional) elements of human behavior that influence decision-making processes in all accounting contexts and settings (Xiao & O'Neill, 2018).Behavior Accounting discusses aspects such as human behavior in processing information, quality of judgment, accounting problems that arise due to users and compilers of accounting and the use of information in accounting decision making (Paterson et al., 2018).Behavior accounting was developed to make the behavioral effects of accounting practices transparent for potential and current stakeholders (Giles et al., 2018).This is done to understand better the impact of business processes, opinions, and human variables on the overall value of the company, now and in the future.
Behavioral accounting and accountability are interrelated.Accountability is often influenced by several factors including ability and expertise, knowledge, work design.Accountability is defined as accountability, where accountability can also lead to the diversity of knowledge that is felt within an organization.Where the perceived diversity of knowledge can be obtained from an organization.Perceived knowledge diversity refers to differences in skill, functional and experience levels in an organization's knowledge positions of an organization indicating that knowledge diversity is very diverse within an organization.
Behavioral accounting relates cultural elements in accounting that can affect the role or outcome of the interaction between accounting information and the behavior of its consumers or presenters (Liu et al., 2019).Human habits will affect some of these accounting behaviors where the dimensions are attitudes, subjective norms and control behavior.One of the control behaviors is the capacity to control behavior (Apostolou et al., 2020).Behavioral control capacity accountability is proposed to bridge these problems, behavioral control capacity accountability is triggered by knowledge diversity and finance capability and then has the potential to improve financial performance.
Knowledge diversity (Hambrick, 2007;Reagans & Zuckerman, 2001) is the task of knowledge creation not only a cognitive process but also a specialized component of knowledge recombination.Monotonous relationships ignore the possibility that there may be a decrease or increase in the development of greater diversity of knowledge within a group, therefore, we need to improve understanding of the relationship between knowledge diversity and performance.In addition, many studies usually attach great importance to the diversity of knowledge groups but ignore the differences between the constructs of diversity, disparity and uniformity.
Furthermore, there are two types of knowledge or knowledge diversity in the team, that is expertise disparity and experience variety.When exploring the effect of knowledge diversity on knowledge creation performance, several studies suggests that the effects of these two types of knowledge are consistent (Fong, 2003;Mathieu et al., 2000;Mitchell & Nicholas, 2006).In fact, the nature, function, form and possible consequences of these two types of knowledge differ in cognitive task performance.
Many studies have examined the effect of knowledge on performance, but few have examined financial performance.This research begins with differences in research results including J.-L.Chen (2016) who states that the importance of knowledge in improving performance in the public sector has not been widely proven.This is reinforced by the results of research from Manaf et al. (2018) which states that knowledge does not necessarily have a significant influence on performance, because some knowledge cannot be easily shared but it is more in the minds of individuals as a result of their work experience.This result differs from the results of Ahbabi et al. (2019) which shows that the entire KM process (knowledge creation, knowledge capture and storage, knowledge sharing and knowledge application and use) has a positive and significant impact on the performance of the public sector in the UAE.
Financial performance may also include comprehensive income, asset utilization, market share, and other factors that affect the organization.Perceived financial performance is very important to understand the advantages and disadvantages in making strategic plans for the changes needed in the organization's financial management.Based on the financial performance report, it allows the company's top management to identify the company's income and expenses, the amount of net profit and the comparison of sales levels and production costs.Financial performance is a subjective measure of how well a company can use its core business model assets and generate revenue.
Many studies have examined the effect of knowledge on performance, but few have examined financial performance.This research begins with differences in research results including J.-L.Chen (2016) which states that the importance of knowledge performance on improving performance in the public sector has not been widely proven.this is reinforced by the results of research from Manaf et al. (2018) which states that knowledge does not necessarily have a significant influence on performance, because some knowledge cannot be easily shared but it is more in the minds of individuals as a result of their work experience.This result differs from the results of Ahbabi et al. (2019) which shows that the entire KM process (knowledge creation, knowledge capture and storage, knowledge sharing and knowledge application and use) has a positive and significant impact on the performance of the public sector.
The background knowledge that a person has, will affect shaping his financial capabilities (Potocki & Cierpiał-Wolan, 2019).Other research states that knowledge possessed by a person will increase his financial capability (M.-H.Chen et al., 2018).The findings reveal that the use of financial statements is positively related to subjective norms, knowledge of financial statements, attitudes towards the use of financial statements, and perceived behavioral control (Kishan & Alfan, 2019).
Financial Performance is also used as a general measure of the company's overall financial health in a certain period (Sadalia et al., 2019).The company's financial performance is used to show the company's performance over a certain period of time, generally every fiscal quarter (Platonova et al., 2018).
Based on the background of the problems which are the research gap and existing business phenomena, this article proposes a Behavioral Control Accountability model to bridge the problems that arised from these research differences.Financial accountability behavioral control triggered by knowledge diversity has the potential to increase financial capability and consequently will have the potential to realize financial performance.

Literature Review and Hypotheses Behavioral Accounting Theory
Behavioral accounting is a part of accounting science that studies the relationship between human behavior, accounting and organizations (Hakansson, 1978).Behavioral accounting is a field of study that studies the human aspects of accounting (human factors of accounting) and the social aspects of accounting (social aspects of accounting) (Belkaoui & Karpik, 1989).Behavioral accounting studies human reactions to the format and content of financial reporting, the process of using information in decision making, the development of reporting techniques, linking accounting, humans, organizations and society.

Knowledge Diversity and Behavioral Control Accountability
Some of the research results that underlie this research result from research which states that a person's background knowledge will influence in shaping his financial capabilities (Potocki & Cierpiał-Wolan, 2019).Other research states that knowledge possessed by a person will increase his financial capability (M.-H.Chen et al., 2018).The findings reveal that the use of financial statements is positively related to subjective norms, knowledge of financial statements, attitudes towards the use of financial statements, and perceived behavioral control (Kishan & Alfan, 2019).P1: Increased behavioral control accountability triggered by knowledge diversity.

Financial Capability and Behavioral Control Accountability
Financial capability requires the ability to act (knowledge, skills, confidence, and motivation) and the opportunity to act (through access to useful financial products and institutions) (Arifin, 2018).Financial capability contributes to one's financial well-being and life opportunities.People who have greater knowledge and understanding of finance and have financial management skills are more likely to make good financial decisions (Sherraden, 2010).Financial capability can help overcome millennials' risky financial behavior and provide opportunities for low-income millennials to build healthy financial behaviors (West & Friedline, 2016).Financial capability is an individual's ability to carry out healthy financial behavior balanced with two components, financial knowledge and financial inclusion (Friedline & West, 2016).P2: Increased behavioral control accountability triggered by financial capability.
Behavioral Control Accountability and Financial Performance Barbić (2017) which states that behavioral control is found to have a significant relationship with financial performance.These results indicate that the higher level of control of one's financial behavior will increase the strength of the association between financial skills and success in managing personal finances.Behavioral finance has the same perspective as accounting in bringing a completely new understanding to the world of finance and examining the decision process by considering psychological, sociological and anthropological behavior in making financial decisions and ultimately influencing financial performance improvement (Albulescu, 2020).P3: Increased financial performance triggered by behavioral control accountability.
The increase in behavioral control capacity accountability is triggered by knowledge diversity and has the potential to increase financial performance.The increase in behavioral control capacity accountability is triggered by finance capability and has the potential to improve financial performance.The integration of proposition 1 regarding behavioral control capacity accountability and proposition 2 financial capability and financial performance forms the basic theoretical model, which is presented in Figure 1 below:

Research Methods
This type of research uses causal research, that is examining the possibility of a causal relationship between variables, so that researchers can state the classification of these variables, where is exploratory research which aims to find the relationship between the independent variable and the dependent variable (Eşitti & Kasap, 2020).Structural equation modeling (SEM) is a multivariate statistical technique for estimating complex relationships between observed variables and latent variables.It is this assumption that allows descriptive research techniques to operate on the premise that the primary goal of the most basic type of investigation is to observe (gather data about) a particular event.
This research also employs a descriptive research strategy and uses survey measures to capture the objective and social reality of the business to answer the research hypothesis.This allows the research to answer the questions posed by the research.The first thing that needs to be done as part of this technique is to research the relevant literature review to identify the topics mentioned earlier.A framework of inquiry is designed after considering previous work that has been done in the sector.Thereafter, structural equation modeling (SEM) was used in conjunction with the survey to develop the anticipated links and verify them.

Population and Sample
The population in this article is the manufacturers in Semarang Central Java who have networking and collaboration strategies with other groups of common interest.Sample technique used in this article is census, which means that the entire population is used as sample.The sample in this study were 146 members of Koperasi Simpan Pinjam dan Pembiayaan Syariah Baitul Maal Wat Tamwil (KSPPS BMT) in Semarang, Central Java.
The number of questionnaires distributed was one thousand, but for the purposes of subsequent analysis, only responses from respondents indicated that the respondents used at least one variant of the form and provided answers to the questionnaire statements to the respondents.The number of valid questionnaires submitted was 146.The researcher used Google Forms for the questionnaire creation and data collection process.Then the data from Google Forms was stored in Google Drive.Data collection used Google Forms because face-to-face contact was not possible in the context in which the researcher conducted the study.The identity of the respondents was kept confidential as each questionnaire and invitation to take part in the research was sent without including any identifying information.

Questionnaire
The use of exploratory-research data serves the purpose of verifying the validity of the theoretical model presented.Data was collected through the use of methods based on a survey of the target population.The indicators have been evaluated with a likert scale consisting of five points in each category.The anchors on the scale vary from a strongly disagree (STS) mark of 1 to a strongly agree (SS) mark of 5, with 1 representing strongly disagree and 5 representing strongly agree.Since this method requires less time and effort, as well as because by utilizing this scale, respondents get the opportunity to remain neutral by voting for the "neither agree nor disagree" option, this study used a 5-point Likert scale.

Data Analysis
Researchers used Smart PLS software to present research results on behavioral control accountability, knowledge diversity, financial capability, financial performance.After determining the measurement parameters and structural model in the first stage, the researcher next developed a suitable bootstrap estimation.This study was conducted with the intention of evaluating the influence of the constructs behavioral control accountability, knowledge diversity, financial capability, financial performance to better understand the influence between these variables.

Results and Discussion
The demographic breakdown of the sample, including employees' gender, ages, levels of education, and positions within the organization, were shown in Table 1.The majority of the respondents in the sample were younger workers (21-30 years old, 30.8%), male (65.1%), holders of bachelor's degree (60.3%), and employees working in professional roles in organization (37.7%).Table 2 shows the descriptive statistics for each indicator in the research.The authors began by loading reflecting indicator loadings, as well as internal consistency reliability, convergent validity, and discriminant validity.This was the initial phase.In the model, reflective structures are suggested to be measured using this particular sort of method (Grubor et al., 2020).In addition to the techniques that were stated, the CMB test, also known as the common method bias test, was also carried out.Load factors with values ranging from 0.4 to 0.7 should be kept only if the absence of such values will not have an effect on the AVE and composite reliability (Berber et al., 2020;Gašić & Berber, 2021;Hair et al., 2016).Because of the very low values associated with their loads, several elements had to be excluded from the subsequent study.Given the information presented above, Figure 1 shows the retained items that have loadings greater than 0.732 (see Figure 1).The indicator reliability, as well as the construct reliability and validity, are detailed in the table that follows.The results of the reliability test are shown in Table 3, where they were obtained by the computation of cronbach's alpha, composite reliability, and average variance extracted.The numbers varied from 0.792 (expertise variety), 0.795 (experience variety), 0.746 (finance capability), 0.763 (behavioral control accountability), and 0.836 (financial performance), all the way up to the highest value, which was recorded for turnover intention, which was 0.836.This was based on the data that was collected by calculating cronbach's alpha.Cronbach's alpha should have no lower limit than 0.6, according to the recommendations of some of the authors (Bjekić et al., 2021;Taber, 2018).
The value of the composite dependability of constructs ranged from 0.878 for X1, 0.880 for X2, 0.854 for FC, 0.849 for BCA, to 0.890 for FP, which was the highest value measured.A few of the writers suggest that an acceptable threshold of CR no lower than 0.7 should be considered adequate.The CR criteria was satisfied as a consequence of the findings that are shown in the table that is located above.Because the values of composite reliability (CR) are somewhat higher than the values of cronbach alpha, but the difference between the two is not too significant, composite reliability may be employed as an alternative.

Figure 1. Path Coefficient Estimates
Testing of the average variance extracted was used to evaluate the convergence of validity (AVE).The average value of the AVE is shown in the table that is located below.The values vary from 0.707 (X1) to 0.611 (X2) to 0.663 (FC) to 0.587 (BCA) to 0.670 (FP), which is the highest number that has been recorded.The minimum value of AVE that may be considered acceptable is 0.5.The limit of acceptability was reached, and as a result, the conclusion that convergent validity was fulfilled across all three dimensions.These findings are based on the data that are shown in the table that is located below.Cross-loadings indicators, the Fornell and Larcker criteria, and heterotrait-monotrait correlation ratios are three methods that may be used to evaluate a discriminant validity hypothesis.The cross loadings for discriminant validity are shown in table 4. the measurement model will have a matching discriminant validity if the load of the indicator for its constructive structure is bigger than any other construction.The findings show a load of each block is larger than a load of any other block in the same column and row, clearly differentiating each latent variable based on the data that was acquired and shown in the table that was just above this one.The discriminant validity of the measurement model is validated by the results of the cross-loading analysis.Where the minimum acceptable reliability value is 0.7.Construct reliability is obtained from the (Hair et al., 2014).Variance extract shows the amount of variance from the indicators extracted by the latent variable being developed.The minimum acceptable extract variance value is 0.5, with a loading standard of over 0.6.According to the Fornell-Lacker criterion, the value of the root of the AVE latent variable has to be higher than the value of any and all correlations with the latent variable.Because the value of the AVE root on the diagonal is bigger than all of the values listed below for each variable, may draw the conclusion that discriminant validity has been fulfilled.This finding is based on the data that have acquired.The discriminant validity of the heterotrait-monotrait (HTMT) contrast is shown in Table 6.All HTMT values that are upper than 0.9 indicate that the components vary from one another to an adequate degree, which indicates that they each reflect a distinct set of occurrences.The conclusion that the requirement of discriminant validity according to HTMT is fulfilled based on the data that was acquired and is given in the table above.This is because all of the values that were obtained are over 0.9.An investigation of the common method bias, also known as CMB, was carried out utilizing the complete collinearity technique.Some writers accept VIF values of less than 5 or even 10, which indicates the harmfulness of collinearity.The threshold value of VIF factors is 3, yet some authors accept these values.
According to the information presented in Table 7, the multicollinearity analysis shows VIF values are, in the vast majority of instances, less than 3. Despite this, these values are accepted on the basis of the indicators of authors who accept VIF values up to 5. The last thing that needs to be done is an analysis of the relationship between the independent variable (X1, X2, and FC) and the dependent variables (BCA and FP), as well as an examination of the role that job satisfaction plays as a mediator in the connection between EJS and DC.R 2 (R-squared), a statistical measure of the proportion of the variance for a dependent variable that is explained by an independent variable, reveals that the value for Behavioral control accountability is 74.3%, while the value for financial performance is 70.7%, both of which are explained by the independent variables X1, X2, and FC in the model.R 2 is a statistical measure of the proportion of the variance for a dependent variable that is explained by an independent variable.According to Table 9, the following conclusions there is increased behavioral control accountability triggered by expertise variety (β = 0.213; T = 3.421; p = 0.001); there is increased behavioral control accountability triggered by experience variety (β = 0.233; T = 2.741; p = 0.006); there is increased behavioral control accountability triggered by financial capability (β = 0.567; T = 8.555; p = 0.000); and there is increased financial performance triggered by behavioral control accountability (β = 0.842; T = 24.759;p = 0.000).Figure 2 illustrates these connections between variables.

Knowledge diversity and behavioral control accountability
The results showed that conclusions there is increased behavioral control accountability triggered by expertise variety (β = 0.213; T = 3.421; p = 0.001) and increased behavioral control accountability triggered by experience variety (β = 0.233; T = 2.741; p = 0.006), so the first proposition is supported.The higher the expertise variety, the better the behavioral control accountability.These results indicate that to increase behavioral control accountability built by expertise variety.The expertise variety variable is built by indicators of experience variation, experimental variation and innovative variation, while behavioral control accountability is built by indicators of behavioral intention, perceived behavioral control, process accountability, and financial accountability.To increase behavioral intention accountability, it must increase the variety of experience, experimental variety, and innovative variety.
To increase the influence of expertise variety on behavioral control accountability, organizations are expected to be able to encourage HR courage to experiment by providing support or freedom in carrying out work in their own way (work autonomy).Thus, the higher the disparity of expertise owned by human resources will increase the ability to control financial behavior by balancing the right to fulfill obligations.Some of the research findings that underpin this study include the finding that a person's background knowledge influences his financial capability (Potocki & Cierpiał-Wolan, 2019).According to other studies, a person's knowledge will boost his financial capability (M.-H.Chen et al., 2018).The findings show that financial statement usage is connected to subjective standards, financial statement knowledge, attitudes toward financial statement use, and perceived behavioral control (Kishan & Alfan, 2019).
The better the experience variety, the higher the behavioral control accountability.These results indicate that to increase trustworthiness behavioral control accountability is built by experience variety.To increase behavioral control accountability, perceived behavioral control, process accountability and financial accountability are built by skills, knowledge, and loyalty.The higher the diversity of experience possessed by HR will increase the ability of HR to control financial behavior by balancing the right obligations to fulfill obligations.

Financial capability and behavioral control accountability
The results showed that conclusions there is increased behavioral control accountability triggered by financial capability (β = 0.567; T = 8.555; p = 0.000), so the second proposition is accepted.If finance capability is getting better, then behavioral control accountability is getting higher.These results indicate that to increase behavioral control accountability built by finance capability.The finance capability variable is built by indicators of financial knowledge and understanding, financial skills and competencies, and financial responsibility, while behavioral control accountability is built by indicators of Islamic behavioral intention, perceived behavioral control, process accountability, and financial accountability.This shows that to increase behavioral control accountability, perceived behavioral control, process accountability and financial accountability are built by financial knowledge and understanding, financial skills and competencies, and financial responsibility.The higher the ability of HR to understand, evaluate relevant information needed to make financial decisions will control financial behavior by balancing rights and obligations.
Financial capability necessitates the ability to act (knowledge, skills, confidence, and motivation) as well as the chance to act (through access to beneficial financial goods and institutions) (Arifin, 2018).Financial capability helps one's financial well-being and life chances.People with a better understanding of money and financial management abilities are more likely to make sound financial decisions (Sherraden, 2010).Financial capability can assist millennials overcome dangerous financial conduct while also providing possibilities for low-income millennials to develop health financial behaviors (West & Friedline, 2016).Financial capability is defined as an individual's ability to engage in healthy financial conduct, which includes two components: financial knowledge and financial inclusion (Friedline & West, 2016).

Behavioral control accountability and financial performance
The results showed that conclusions there is increased financial performance triggered by behavioral control accountability (β = 0.842; T = 24.759;p = 0.000), so the third proposition is supported.If behavioral control accountability is higher, then financial performance is higher.These results indicate that to improve financial performance is built by behavioral control accountability.Behavioral control accountability variables are built by indicators of behavioral intention, perceived behavioral control, process accountability, and financial accountability, while financial performance variables are built by indicators of capital, liquidity, income and profitability.This shows that to increase the indicators of capital, liquidity, income, and profitability are built by behavioral control accountability, perceived behavioral control, process accountability, and financial accountability.
The results of this study support the findings which state that the level of accountability manifested in staffing, performance evaluation, and compensation all positively and significantly affect organizational performance (Han & Hong, 2019).The results showed that awareness of accountability supports organizational performance (Dwianika et al., 2020).Barbić (2017) which states that behavioral control is found to have a significant relationship with financial performance.These results indicate that the higher level of control of one's financial behavior will increase the strength of the association between financial skills and success in managing personal finances.Behavioral finance has the same perspective as accounting in bringing a completely new understanding to the world of finance and examining the decision process by considering psychological, sociological and anthropological behavior in making financial decisions and ultimately influencing financial performance improvement (Albulescu, 2020).To increase the influence of behavioral control accountability, organizations are expected to be able to increase process accountability.organizations can increase process accountability by increasing the technology acceptance model (TAM) and strengthening the use of information and communication technologies (ICT) in financial performance reporting.

Theoretical Implication and Managerial Implication
This article describes the effect of knowledge diversity and financial capability on behavioral control accountability.Provide further understanding of behavioral control accountability on financial performance is supported by the increasing knowledge diversity and financial capability.Provide better insight into the factors that could potentially affect behavioral control accountability and the resulting impact.
The importance of knowledge diversity factor and financial capability in shaping behavioral control accountability and its impact on financial performance is offering a deeper understanding of the factors supporting behavioral control accountability and also affects efforts to improve financial performance.
The proof of this proposed model should contribute to behavioral accounting theory and human resource management theory.The behavioral control accountability model shows that the perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process accountability and financial can affect financial performance.

Conclusion and Future Direction
Knowledge diversity and financial capability increases behavioral control accountability and ultimately has the potential to increase financial performance.Behavioral control accountability has the potential to improve financial performance been being driven by knowledge diversity and financial capability and perceived financial performance more effectively.
This article provides some key insights for practitioners of financial literacy and inclusion.A better understanding of the factors that influence improvement efforts should assist accountants in processing information, the quality of judgment, accounting problems that arise due to accounting users and compilers, and the use of information in accounting decision making.Furthermore, support for the model proposed in this article should help accountants to better understand the factors that affect behavioral control accountability and will help build quality financial performance more efficiently.
Future research should be carried out to examine the propositions thoroughly of this article.Assuming that support is found for the behavioral control accountability proposed in this article, some new research opportunities emerge.First, is a more in-depth study of the factors that influence behavioral control accountability.Next, is the impact factor of behavioral control accountability.The next research opportunity is to focus on perceived financial performance outcomes that result from behavioral control accountability, and the final opportunity is to test the model empirically and contribute to the line of financial management research needs.

Figure 2 .
Figure 2. The Path Model with Bootstrapping Results

Table 1 .
Sample Characteristics

Table 2 .
Descriptive Statistics for Each Indicator in The Research

Table 3 .
Indicator Reliability, Construct Reliability, and AVE

Table 5
presents evidence of discriminant validity according to the Fornell-Lacker criteria.

Table 9
contains information on the model's variables, including their means, standard deviations, T-statistics, and p-values.

Table 9 .
Mean, Standard Deviation, T-statistics, and P-values