The Accountant's Perception of the Usefulness of Financial Information in Decision Making – A Case Study in Portugal

Abstract

Purpose – This paper aims to analyse the factors that make Financial Information (FI) useful for decision making processes, from the perspective of Certified Accountants (CAs).

Design/methodology/approach –Following a quantitative methodological approach, a survey was applied to a sample of 157 CAs to empirically test the conceptual model.

Findings – The study finds that managers of larger and older firms, with better performance and with more complete Financial Statements (FSs) attribute greater usefulness to FI in decision making. The results also show that managers who are not the owner, who have academic qualifications at the higher education level, and have management skills attribute greater usefulness to FI in decision making.Originality/value – The results of the study will guide accounting professionals in relation to the FI to be prepared within the scope of their duties, taking into account the characteristics of the company and the manager. 

Purpose – This paper aims to analyse the factors that make Financial Information (FI) useful for decision making processes, from the perspective of Certified Accountants (CAs).

Design/methodology/approach –Following a quantitative methodological approach, a survey was applied to a sample of 157 CAs to empirically test the conceptual model.

Findings – The study finds that managers of larger and older firms, with better performance and with more complete Financial Statements (FSs) attribute greater usefulness to FI in decision making. The results also show that managers who are not the owner, who have academic qualifications at the higher education level, and have management skills attribute greater usefulness to FI in decision making.Originality/value – The results of the study will guide accounting professionals in relation to the FI to be prepared within the scope of their duties, taking into account the characteristics of the company and the manager.