The relationship between strategic management accounting techniques usage and financial performance of comercial banks in Kenya.
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.