The importance to financial information in the decision-making process in company’s family structure

Abstract

<p class="Pa10"> In Portugal most enterprises have a family pattern and an important role. Its importance is recognized and justifies the option to develop this research, which aims to determine whether these enterprises assign importance to financial information in the decision-making process. The work allowed gathering enough evidence to conclude on the importance of financial statements for the decision-making process, in par­ticular as regards the use of the balance sheet and income statement. It was also concluded that financial information is primarily used to assess the financial impact, support the current management, investment decisions and comply with tax obligations.</p>

The Impact of Sustainable Financial Data Governance, Political Connections, and Creative Accounting Practices on Organizational Outcomes

“…The present finding is in line with existing assertions. For example, it was reported by an earlier study that accrual accounting reforms on financial reporting has great tendency to support and materialize accurate and reliable decisions [28,[55][56][57]. This study extended and provided contribution from an Arabian cultural setting.…”

“…Research shows that these data are useful to a wide range of users (i.e., private and public entities) in making economic decisions [25]. For example, financial statements have been shown to affect SME owner's decision effectiveness [4], and it is also used to assess the overall health of family firms and guides decision makers [55,56]. Fuchs, Bergmann, and Brusca [57] added that accrual accounting reforms on financial reporting is a prerequisite instrument for sound decisions.…”

The influence of accounting information system on management control effectiveness: The perspective of SMEs in Yemen

“…Adopting a computer-based accounting system has become critical, and it may be a crucial factor in the survival and success of SMEs (Ismail et al, 2003). There is a reasonable consensus on the importance of AIS for the continuity and survival of firms (Mohammad, 2018; Nyathi et al, 2018; dos Santos et al, 2018). This is because AIS is a critical regulatory mechanism crucial for effective decision management and business control (Nicolaou, 2000; Shuhidan et al, 2015; dos Santos et al, 2018; Ghasemi et al, 2019).…”

“…There is a reasonable consensus on the importance of AIS for the continuity and survival of firms (Mohammad, 2018; Nyathi et al, 2018; dos Santos et al, 2018). This is because AIS is a critical regulatory mechanism crucial for effective decision management and business control (Nicolaou, 2000; Shuhidan et al, 2015; dos Santos et al, 2018; Ghasemi et al, 2019). Using AIS, it is possible to carry out the management control process effectively as AIS is a control system in nature.…”

Specificity of the decision‐making mechanism in public corporations

“…The existence of such an order is not a problem; on the contrary, this is a significant advantage that must be used correctly. Algorithms and structuring of the decision‐making process allow avoiding the influence of the political factor in public corporations, especially in matters relating to investment (Drobetz et al, 2019) and the distribution of financial resources (Pickering, 2017; Santos et al, 2018).…”