An analysis on the effect of accounting practices and accounting controls on the business performance among micro-, small-, and medium-scale enterprises (MSMEs) in Quezon City, Philippines

• Main Authors: Baldovino, Cara Julia Ching, Husmillo, Caira Andrea Peran, Lim, Jose Dominick Favis, Maglanque, Patrick Joseph Villegas
• Format: text
• Language: English
• Published: Animo Repository 2023
• Subjects: Small business—Philippines—Quezon City—Accounting; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etdb_acc/54; https://animorepository.dlsu.edu.ph/context/etdb_acc/article/1091/viewcontent/An_Analysis_on_the_Effect_of_Accounting_Practices5.pdf
• Institution: De La Salle University

Micro-, Small-, and Medium-Scale Enterprises in the Filipino community play a pivotal role in economic development. These enterprises do not only serve as a breeding ground for the business owners’ and entrepreneurs’ wealth but they greatly contribute to the generation of job employment and technological development. With adequate resources at hand, micro-, small- and medium enterprises’ ability to make well-informed business decisions translate to good organizational performance. The study assessed the effect of accounting practices and accounting controls on business performance using a Structural Equation Modeling (SEM) framework on Micro-, Small-, and Medium-Scale Enterprises (MSMEs) in Quezon City, Philippines. With the application of the Partial Least Squares - Structural Equation Modeling (PLS- SEM) statistical tool, the researchers gathered 161 respondents which were determined using the Inverse Square Root Method. The findings revealed that the accounting practices of a firm have a significant effect on its financial and non-financial measures of business performance. Moreover, the study also revealed that the accounting controls of a firm have a significant effect on its financial and non-financial measures of business performance.