Succeeding in Managerial Accounting, Part 2: A Structural Equations Analysis
Accounting, Organizations, and Society
Posted: 16 Feb 2000
Abstract
In this paper, we explore the relationship among rank, knowledge, ability, experience, and success in managerial accounting practice. More specifically, we investigate the predictive validity of the Libby & Luft (L&L) model (1993) of the determinants of judgment performance. We implement and test the L & L model using structural equations applied to the performance evaluations of 2,941 practicing managerial accountants. Our results indicate rank-based differences in the determinants of success of staff-level versus senior and manager-level accountants. Specifically, technical managerial accounting knowledge, ability, and experience predict success for junior managerial accountants; industry knowledge, tacit managerial knowledge (TMK) and experience predict success for seniors; while, industry and TMK predict success for managers. The results generally support the validity of the L& L model in predicting the success of practicing managerial accountants.
Note: This is a description of the paper and not the actual abstract.
JEL Classification: J31, J44, L84, M12, M40, M46
Suggested Citation: Suggested Citation