Logo image
The Multiple Roles of the Finance Organization: Determinants, Effectiveness, and the Moderating Influence of Information System Integration
Journal article   Open access   Peer reviewed

The Multiple Roles of the Finance Organization: Determinants, Effectiveness, and the Moderating Influence of Information System Integration

Hsihui Chang, Christopher D. Ittner and Michael T. Paz
Journal of management accounting research, v 26(2)
01 Sep 2014
url
https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2420801_code1808853.pdf?abstractid=2420801&mirid=4View
Open

Abstract

Business & Economics Business, Finance Social Sciences
This study focuses on three broad Finance organization roles: reporting, compliance, and internal control/risk management (RCCR); performance management; and strategic partner. Using data from a global survey of 832 firms, we examine the determinants of the various roles' importance and their relation with Finance effectiveness. While the effects of organizational change, market growth, international operations, firm size, decentralization, and industry on Finance responsibilities vary depending upon the role, we find little evidence of tradeoffs between the various roles. Instead, we find evidence of complementarities between roles, whereby greater emphasis on one role is associated with greater Finance effectiveness in the other roles. Additionally, we find that information system integration (ISI) not only has a positive direct impact on effectiveness in all three roles, but also interacts with the importance placed on RCCR and performance management roles to improve the Finance organization's effectiveness at carrying out these responsibilities.

Metrics

13 Record Views
28 citations in Scopus

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#9 Industry, Innovation and Infrastructure

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Collaboration types
Domestic collaboration
Web of Science research areas
Business, Finance
Logo image