Corporate Governance and Mindfulness: The Impact of Management Accounting Systems Change

• Main Authors: WILLIAMS, John Joseph, SEAMAN, Alfred E.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Accounting; Business Law, Public Responsibility, and Ethics; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/776; https://ink.library.smu.edu.sg/context/soa_research/article/1775/viewcontent/314_Article_Text_1223_1_10_20101116.pdf
• Institution: Singapore Management University

The International Federation of Accountants (2009) argues that a governance structure should go beyond conformance with regulations and equally support a performance dimension that can lead to better outcomes. This paper explores the relationship between these two governance dimensions and the capacity for mindfulness, utilizing organizational theory that describes high reliability organizations. Survey data was obtained from top-level accounting professionals in a sample of 124 Canadian firms. Regression results support the hypothesis that both the conformance and performance dimensions of governance are significant determinants of the capacity for mindfulness. Additional analysis shows that the explanatory power of this relationship persists when management accounting systems change is low but it is significantly greater under conditions of high management accounting systems change. The latter finding is notable in that the most important determinants of the capacity for mindfulness emerge from the performance dimension and not the conformance dimension, which has implications for achieving a balanced governance structure.