Lasse Mertins

Psychological Type and Academic Performance in the Managerial Accounting Course

The authors examined the relationship between personality preferences as measured by the Keirsey Temperament Sorter (KTS-II) and academic performance for students in an undergraduate managerial accounting course. They developed a correlation model linking the strength of personality preferences in the KTS-II to academic performance by students who were enrolled in the managerial accounting course at a large public university in Maryland. There were 109 undergraduate business students who participated. The authors found that individuals with certain personality traits (nonguardian and intuitive types) performed better in managerial accounting tasks than guardian and sensing types. They anticipated these results because nonguardian and intuitive types have personality traits that are considered necessary for a successful career in management accounting.

Presentation Formats, Performance Outcomes, and Implications for Performance Evaluations

Abstract Purpose This study examines the impact of different Balanced Scorecard (BSC) formats (table, graph without summary measure, graph with a summary measure) on various decision outcomes: performance ratings, perceived informativeness, and decision efficiency. Methodology/approach Using an original case developed by the researchers, a total of 135 individuals participated in the experiment and rated the performance of carwash managers in two different scenarios: one manager excelled financially but failed to meet targets for all other three BSC perspectives and the other manager had the opposite results. Findings The evaluators rated managerial performance significantly lower in the graph format compared to a table presentation of the BSC. Performance ratings were significantly higher for the scenario where the manager failed to meet only financial perspective targets but exceeded targets for all other nonfinancial BSC perspectives, contrary to the usual predictions based on the financial measure bias. The evaluators reported that informativeness of the BSC was highest in the table or graph without summary measure formats, and, surprisingly, adding a summary measure to the graph format significantly reduced perceived informativeness compared to the table format. Decision efficiency was better for the graph formats (with or without summary measure) than for the table format. Originality/value Ours is the first study to compare tables, graphs with and without a summary measure in the context of managerial performance evaluations and to examine their impact on ratings, informativeness, and efficiency. We developed an original case to test the boundaries of the financial measure bias.

The Impact of Production Variance Presentation Format on Employees’ Decision Making

Abstract Purpose This paper proposes and tests a model to explain the outcomes of three different information presentation formats. Based on cognitive fit theory, information visualization formats that best fit task characteristics are expected to lead to improved decision-making outcomes. We apply the Judgment and Decision-Making framework (Bonner, 2008) to investigate how certain factors can impact decision quality. Design/methodology/approach This study tests whether certain production variance presentation formats (percentages, dollar amounts, and schematic faces), task complexity, understanding of the presentation format, motivation, and effort increase the accuracy of a supervisor’s bonus calculation. A total of 281 students and professionals participated in this experiment. Their responses were examined using regression analysis. Findings Our results indicate that individuals mostly prefer the percentages presentation format and that the use of the percentages presentation format, a lower level of task complexity, and a better understanding of the variance presentation format lead to more accurate calculations in the experimental task. Research implications Our study provides a call for further research on factors that influence the choice of presentation format as a potentially fruitful area for management accounting researchers. Practical implications We exhort practicing management accountants to exert direct influence on employees’ decision making through the use of variance presentation formats that fit their tasks and promote understanding. Originality/value Our experiment introduced two major innovations: it uses an interactive data visualization approach allowing subjects to select their preferred presentation format; and it focuses on production variances, a topic that has received less attention in the academic managerial accounting literature, but is still very relevant to practitioners.

Risk Management and Internal Control: A Study of Management Accounting Practice

Originality/Value – We develop a framework and offer empirical evidence about the ERM contributions of management accountants. We propose and use two original scales: one to classify ERM activities, and the other to assess ERM culture.