e-journal

Determinants of different accounting methods choice in Tanzania

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Purpose – The purpose of this paper is to examine the factors that determine the choice of multiple
accounting methods in Tanzania. The study investigates managers’ decisions to choose accounting
methods in a positive accounting theory perspective using panel data covering 60 years from 15
companies listed on the Dar es Salaam Stock Exchange.
Design/methodology/approach – Data were extracted from the companies’ annual reports.
Possible determinants of the choice of accounting methods are identified based on the positive
accounting theory, including firm size, leverage, internal financing, proportion of non-executive
directors, ownership dilution, and labour force intensity. The study then utilises multiple regression
analysis to determine the significant factors influencing the manager’s choice of accounting methods.
Findings – The results show that the significant factors are company size, internal financing,
proportion of non-executive directors, and labour force. Contrary to the outcome of prior studies, the
authors found that company size and internal financing are positively related with income strategy.
The study proves statistically that there is a strong association between choice of accounting methods
and income strategy.
Originality/value – The paper makes several contributions to the body of knowledge. First, in the
Tanzanian context, it determines the factors which affect choice of accounting methods. Second,
the study identifies the proportion of non-executive directors as a new factor impinging on the
choice of accounting policies. Finally, this study shows for the first time that the use of ratio of
income-increasing accounting policies to total number of accounting policies can be used as a
dependent variable.

Keywords Tanzania, Accounting theory, International finance, Accounting, Income,Motivation (psychology)

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Ketersediaan

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Informasi Detail

Judul Seri

Journal of Accounting in Emerging Economies

No. Panggil

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Penerbit

: Emeral Group., 2011

Deskripsi Fisik

Journal of Accounting in Emerging Economies Vol. 1 No. 2, 2011 pp. 144-159

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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