Copied Risk Profile Contingent Analysis of Management Control Systems
Risk Profile Contingent Analysis of Management Control Systems
This study contributes to an existing and growing body of literature in the field of management accounting and control concerned with implications from increased uncertainty on MCS design and use. It is found that the choice of MCS reflects the firms risk profile, and that firms that choose MCS design and use better suited to their risk profile perform better than others. Using data from a survey of 362 Chief Executive Officers, this study yields a model of fit that enables the stimulation of selective improvements and helps to achieve a competitive advantage.
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