Article Sidebar

Submitted
February 19, 2023
Accepted
May 10, 2024
Published
May 14, 2024
Download
Full text PDF
Statistic
Read Counter : 317 Download : 254

Downloads

Download data is not yet available.

Main Article Content

Abstract

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).
Findings – The results of the study explain the increase in financial performance based on Behavioral Accounting Theory and Human Resource Management Theory. The behavior control accountability model shows that perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process and financial accountability can affect financial performance
Research limitations/implications – Where the factors of diversity of knowledge and financial capability in shaping accountability for behavior control and impact on financial performance will offer a deeper understanding of the supporting factors for accountability for behavior control and also have an impact on efforts to improve financial performance.
Practical implications – A better understanding of the factors influencing improvement efforts should assist accountants in information processing, quality of judgments, accounting problems that arise with accounting users and preparers, and the use of information in accounting decision making.
Originality/value – Using and explaining about improving financial performance based on Behavioral Accounting Theory and Human Resource Management Theory. The behavior control accountability model shows that perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process and financial accountability can affect financial performance

Keywords

behavioral control accountability knowledge diversity financial capability financial performance

Article Details

License

Copyright (c) 2024 Arini Novandalina, Ibnu Khajar, Nunung Ghoniyah

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Novandalina, A., Khajar, I., & Ghoniyah, N. (2024). The role of financial accountability control in improving financial performance. Jurnal Siasat Bisnis, 28(1), 116–130. https://doi.org/10.20885/jsb.vol28.iss1.art8
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Ahbabi, S. A. Al, Singh, S. K., Balasubramanian, S., & Gaur, S. S. (2019). Employee perception of impact of knowledge management processes on public sector performance. Journal of Knowledge Management, 23(2), 351–373. https://doi.org/10.1108/JKM-08-2017-0348
  2. Albulescu, C. T. (2020). Coronavirus and Financial Volatility: 40 Days of Fasting and Fear. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3550630
  3. Apostolou, B., Dorminey, J. W., & Hassell, J. M. (2020). Accounting education literature review (2019). Journal of Accounting Education, 51(C), 1–27. https://doi.org/10.1016/j.jaccedu.2020.100670
  4. Arifin, A. Z. (2018). Influence of financial attitude, financial behavior, financial capability on financial satisfaction. Proceedings of the 15th International Symposium on Management (INSYMA 2018), 186, 100–103. https://doi.org/10.2991/insyma-18.2018.25
  5. Barbić, D. (2017). Investigating the Role of Financial Knowledge, Financial Skills and Behavioral Control in Explaining Individuals’ Successfulness in Managing Personal Finances. 4th International Conference on Humanities, Social Sciences and Education (ICHSSE-17), 22–27. https://doi.org/10.15242/heaig.h0317436
  6. Belkaoui, A., & Karpik, P. G. (1989). Determinants of the Corporate Decision to Disclose Social Information Information. Accounting, Auditing & Accountability Journal, 2(1). https://doi.org/10.1108/09513578910132240
  7. Berber, N., Slavić, A., & Slavić, A. (2020). Relationship between Perceived Teamwork Effectiveness and Team Performance in Banking Sector of Serbia. Sustainability, 12(20), 8753. https://doi.org/10.3390/su12208753
  8. Bjekić, R., Jelača, M. S., Berber, N., & Aleksić, M. (2021). Factors Affecting Entrepreneurial Intentions of Faculty Students. Management: Journal Of Sustainable Business And Management Solutions In Emerging Economies, 26(2), 1–14. https://doi.org/10.7595/management.fon.2020.0024
  9. Chen, J.-L. (2016). Effects of Knowledge Management on the Operational Performance of the B&B Industry. International Journal of Marketing Studies, 8(4), 67–76. https://doi.org/10.5539/ijms.v8n4p67
  10. Chen, M.-H., Wang, H.-Y., & Wang, M.-C. (2018). Knowledge sharing, social capital, and financial performance: the perspectives of innovation strategy in technological clusters. Knowledge Management Research & Practice, 16(1), 89–104. https://doi.org/10.1080/14778238.2017.1415119
  11. Dwianika, A., Murwaningsari, E., & Suparta, W. (2020). ANALYSIS OF WATER AWARENESS, ACCOUNTABILITY, AND GOVERNANCE TO IMPROVE SUSTAINABILITY OF FIRM’S PERFORMANCE IN URBAN AREAS. Geographia Technica, 15(1), 35–42. https://doi.org/10.21163/GT_2020.151.04
  12. Eşitti, B., & Kasap, M. (2020). The impact of leader–member exchange on lodging employees’ dynamic capacities: The mediating role of job satisfaction. Tourism and Hospitality Research, 20(2), 237–244. https://doi.org/10.1177/1467358419826397
  13. Fong, P. S. W. (2003). Knowledge creation in multidisciplinary project teams: an empirical study of the processes and their dynamic interrelationships. International Journal of Project Management, 21(7), 479–486. https://doi.org/10.1016/S0263-7863(03)00047-4
  14. Friedline, T., & West, S. (2016). Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors. Journal of Family and Economic Issues, 37, 649–671. https://doi.org/10.1007/s10834-015-9475-y
  15. Gašić, D., & Berber, N. (2021). The Influence of Flexible Work Arrangement on Employee Behavior During the COVID-19 Pandemic in the Republic of Serbia. Management: Journal Of Sustainable Business And Management Solutions In Emerging Economies, 26(3), 73–88. https://doi.org/10.7595/management.fon.2021.0026
  16. Giles, B., Goods, P. S. R., Warner, D. R., Quain, D., Peeling, P., Ducker, K. J., Dawson, B., & Gucciardi, D. F. (2018). Mental toughness and behavioural perseverance: A conceptual replication and extension. Journal of Science and Medicine in Sport, 21(6), 640–645. https://doi.org/10.1016/j.jsams.2017.10.036
  17. Grubor, A., Berber, N., Aleksić, M., & Bjekić, R. (2020). Uticaj korporativne društvene odgovornosti na organizacione performanse - istraživanje u AP Vojvodini. Анали Економоског Факултета у Суботици – The Annals of the Faculty of Economics in Subotica, 56(43), 3–13. https://scindeks.ceon.rs/Article.aspx?artid=0350-21202043003G
  18. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). Pearson Education.
  19. Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications. https://books.google.co.id/books?id=C%5C_EmjgEACAAJ
  20. Hakansson, N. H. (1978). Review Article: Where We are in Accounting: A Review of “Statement on Accounting Theory and Theory Acceptance.” The Accounting Review, 53(3), 717–725. http://www.jstor.org/stable/245678
  21. Hambrick, D. C. (2007). Upper Echelons Theory: An Update. Academy of Management Review, 32(2), 334–343. https://doi.org/10.5465/AMR.2007.24345254
  22. Han, Y., & Hong, S. (2019). The Impact of Accountability on Organizational Performance in the U.S. Federal Government: The Moderating Role of Autonomy. Review of Public Personnel Administration, 39(1), 3–23. https://doi.org/10.1177/0734371X16682816
  23. Kishan, K., & Alfan, E. (2019). Malaysian Individual Investors: What Are the Factors That Influence Their Financial Statement Usage? Asian Journal of Accounting Perspectives, 12(1), 22–48. https://doi.org/10.22452/AJAP.vol12no1.2
  24. Liu, P., Feng, Y., Li, A., Liu, W., & Xie, J. (2019). Disclosing behavioral anomalies in economic management: Implications for mental accounting theory. Advances in Psychological Science, 27(3), 406–417. https://doi.org/10.3724/SP.J.1042.2019.00406
  25. Malmi, T., & Granlund, M. (2009). In Search of Management Accounting Theory. European Accounting Review, 18(3), 597–620. https://doi.org/10.1080/09638180902863779
  26. Manaf, H. A., Armstrong, S. J., Lawton, A., & Harvey, W. S. (2018). Managerial Tacit Knowledge, Individual Performance, and the Moderating Role of Employee Personality. International Journal of Public Administration, 41(15), 1258–1270. https://doi.org/10.1080/01900692.2017.1386676
  27. Mathieu, J. E., Heffner, T. S., Goodwin, G. F., Salas, E., & Cannon-Bowers, J. A. (2000). The influence of shared mental models on team process and performance. Journal of Applied Psychology, 85(2), 273–283. https://doi.org/10.1037/0021-9010.85.2.273
  28. Mistry, V., Sharma, U., & Low, M. (2014). Management accountants’ perception of their role in accounting for sustainable development: An exploratory study. Pacific Accounting Review, 26(1/2), 112–133. https://doi.org/10.1108/PAR-06-2013-0052
  29. Mitchell, R., & Nicholas, S. (2006). Knowledge Creation in Groups: The Value of Cognitive Diversity, Transactive Memory and Open‑mindedness Norms. The Electronic Journal of Knowledge Management, 4(1), 67–74. https://academic-publishing.org/index.php/ejkm/article/view/737
  30. Paterson, A., Yonekura, A., Jackson, W., & Jubb, D. (Eds.). (2018). Contemporary Issues in Social Accounting. Goodfellow Publishers Ltd.
  31. Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151, 451–471. https://doi.org/10.1007/s10551-016-3229-0
  32. Potocki, T., & Cierpiał-Wolan, M. (2019). Factors shaping the financial capability of low-income consumers from rural regions of Poland. International Journal of Consumer Studies, 43(2), 187–198. https://doi.org/10.1111/ijcs.12498
  33. Reagans, R., & Zuckerman, E. W. (2001). Networks, Diversity, and Productivity: The Social Capital of Corporate R&D Teams. Organization Science, 12(4), 393–521. https://doi.org/10.1287/orsc.12.4.502.10637
  34. Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The Influence of Intellectual Capital towards Financial Performance with Brand Value as an Intervening Variable. Quality - Access to Success, 20(168), 79–85. https://www.researchgate.net/profile/Iskandar-Muda/publication/330883138_The_influence_of_intellectual_capital_towards_financial_performance_with_brand_value_as_an_intervening_variable/links/5ca0c45992851cf0aea431d4/The-influence-of-intellectual-capital-towards-financial-performance-with-brand-value-as-an-intervening-variable.pdf
  35. Sherraden, M. S. (2010). Financial Capability: What is It, and How Can It Be Created? (10–17; CSD Working Papers No. 10-17). https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1643&context=csd_research
  36. Taber, K. S. (2018). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education, 48, 1273–1296. https://doi.org/10.1007/s11165-016-9602-2
  37. West, S., & Friedline, T. (2016). Coming of Age on a Shoestring Budget: Financial Capability and Financial Behaviors of Lower-Income Millennials. Social Work, 61(4), 305–312. https://doi.org/10.1093/sw/sww057
  38. Xiao, J. J., & O’Neill, B. (2018). Mental accounting and behavioural hierarchy: Understanding consumer budgeting behaviour. International Journal of Consumer Studies, 42(4), 448–459. https://doi.org/10.1111/ijcs.12445