Title: Cross-country differences in the use of management accounting tools

Authors: Chunyan Li, Roberta J. Cable, Patricia Healy

Addresses: Accounting Department, Lubin School of Business, Pace University, 861 Bedford Road, Pleasantville, NY, 10570, USA. ' Accounting Department, Lubin School of Business, Pace University, 861 Bedford Road, Pleasantville, NY, 10570, USA. ' Accounting Department, Lubin School of Business, Pace University, 861 Bedford Road, Pleasantville, NY, 10570, USA

Abstract: This paper examines the impact of local cultural influences as well as global market forces on the use of management accounting tools (MATs). We surveyed the use of MATs by Indian firms that listed ADRs on the US capital markets. We chose Indian firms because India is an important developing nation that has an important global presence. Overall, we found a high use of MATs by Indian firms. These firms are larger companies and are influenced by several factors, such as local culture and economic development, as well as mitigating global market forces. Contrary to prior findings that the use of contemporary tools is lacking in developing countries compared with the US, we found that our sample of Indian firms had a high use of some contemporary MATs. Our results also indicate that size, but not industry classification, influenced the choice of certain MATs.

Keywords: global markets; management accounting; cultural differences; cross-country analysis; India; local culture; economic development; developing countries.

DOI: 10.1504/JGBA.2009.023097

Journal for Global Business Advancement, 2009 Vol.2 No.1/2, pp.112 - 124

Published online: 09 Feb 2009 *

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