The relationship between strategic management accounting techniques usage and financial performance of comercial banks in Kenya.
Abstract
Strategic Management Accounting can be defined as management-oriented accounting or
accounting in relation to management function. The rapid changing of business
environment lately is significantly changing the management accounting practices and
the role of management accountant in an organization. The main focus of management
accounting has always been to improve the organization performance and profitability by
providing relevant information for planning, controlling and decision making.
The research Population was 43 Commercial Banks throughout Kenya. This study aimed
at investigating the link between the practice of strategic management accounting as
strategic initiatives and the improvement in Banks financial performance in Kenya.
Multiple Regression analysis is used to test the association between strategic
management accounting techniques usage and the improvement in ROA as a mean of
financial performance which is associated with the initiatives. Analysis shows that
95.26% of the Commercial Banks in Kenya under consideration use at least one of the
strategic initiatives. In addition, strong evidence emerges that the use of strategic
initiatives leads to improvement in financial performance of the Commercial Banks in
Kenya under consideration.
Publisher
University of Nairobi