The Contribution Effect of Management Accountant’s Competence and Management Accounting Practices on Financial Performance of Manufacturing Firms

Abstract

This study sought to establish the contribution effect of management accountant’s competence and management accounting practices on the financial performance of manufacturing firms, using Mbarara district in Uganda as the study setting. Field data were collected through a questionnaire survey from forty-six manufacturing firms operating in Mbarara district. A hierarchical regression analysis was performed to establish the contribution effect of the study variables. The results revealed that management accountant’s competence has a greater contribution effect (R2 change =43%) compared to management accounting practices (R2 change =5%). The results imply that management accountant’s competence matter a lot in explaining variations in the financial performance of manufacturing firms. The novelty of this study lies in the fact that past studies investigating the relationship between management accounting practices and financial performance have often missed the reality of the management accountant’s competence.

Keywords: Management accountant’s competence, management accounting practices, financial performance, manufacturing firms