The Role of Top Management and Its Impact on the Use of Management Accounting Systems and Accounting Profitability
DOI:
https://doi.org/10.21928/juhd.v12n4y2026.pp1-13Keywords:
Activity-Based Costing, Net Profit Margin, Chief Financial Officer, Chief Marketing Officer, Chief Human Resources OfficerAbstract
The objective of this study is to investigate the role of senior managerial positions and their impact on management accounting systems and profitability within companies. It is a quantitative study where multiple regression analysis used, which resulted in the development of two models. To evaluate the impact of the independent variable consisting of key executive roles, Chief Operating Officer, Chief Financial Officer, Chief Marketing Officer, and Chief Human Resources Officer. on the dependent variable measured by activity-based costing and net profit margin. 115 questionnaires were distributed to companies and organizations, and was answered correctly in 92.17% of the questionnaires. The questionnaire was analyzed quantitatively using statistical software (SPSS 26). The results show that in the first model, the chief operating officer has a non-significant positive effect on activity-based costing. At the same time, the chief financial officer has a non-significant negative impact on activity-based costing. However, both the Chief Marketing Officer and the Chief Human Resources Officer have a significant positive impact on activity-based costing. However, the results of Model 2 show that only the chief human resource officer has a significant positive effect on the net profit margin. The other variables have no effect.
References
Ahmed, A. M. (2022). The Relationship Between Firm Size and Profitability “Evidence from the Commercial Banks in Iraq. The Scientific Journal of Cihan University – Sulaimaniya, 6(1), 145–156. https://doi.org/doi.org/10.25098/6.1.34
Ahmed Mohamed Ghandour, D. (2021). Analytical Review of the Current and Future Directions of Management Accounting and Control Systems. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3819654
Al-dhubaibi, A. A. S. (2021a). Management Science LettersOptimizing the value of activity based costing system: The role of successful implementation. Management Science Letters, 11, 1–8. https://doi.org/10.5267/j.msl.2020.8.017
Al-dhubaibi, A. A. S. (2021b). Modeling Managerial Accounting Information Systems Acceptance and Intention of Retention : Activity based Costing System as an Example Modeling Managerial Accounting Information Systems Acceptance and Intention of Retention : Activity based Costing System. WSEAS TRANSACTIONS on BUSINESS and ECONOMICS, 18(December), 1461–1473. https://doi.org/10.37394/23207.2021.18.134
AL-NASSER, A. H. H., BARRAK, J. I., & SAHIB, A. A. (2025). ENHANCING PROFITABILITY AND TRANSPARENCY IN IRAQ’S MANUFACTURING INDUSTRY: INTEGRATING ACTIVITY-BASED COSTING WITH FINANCIAL REPORTING QUALITY. Journal of Sustainability Science and Management, 20(10), 2101–2114.
Alabdullah, T. T. Y. (2019). Management Accounting and Service Companies’ Performance: Research in Emerging Economies. Australasian Accounting, Business and Finance Journal Volume, 13(4), 1–21. https://doi.org/doi:10.14453/aabfj.v13i4.8
Almeida, A., & Cunha, J. (2017). The implementation of an Activity-Based Costing (ABC) system in Manufacturing company. Manufacturing Engineering Society International Conference, 932–939.
Alvarez, P., Sensini, L., Bello, C., & Vazquez, M. (2021a). Management Accounting Practices and Performance of SMEs in the Hotel Industry: Evidence from an emerging economy. International Journal of Business and Social Science, 12(2), 24–35. https://doi.org/doi:10.30845/ijbss.v12n2p3
Alvarez, P., Sensini, L., Bello, C., & Vazquez, M. (2021b). Management Accounting Practices and Performance of SMEs in the Hotel Industry: Evidence from an emerging economy. International Journal OfBusiness and Social Science, 12(2), 24–35. https://doi.org/doi:10.30845/ijbss.v12n2p3 Management
Astuti, W., & RWulandari, A. (2020). Analysis of Top Management Support on the Quality of Accounting Information System and the Impact on the Quality of Accounting Information. International Conference on Business, Economics, Social Sciences, and Humanities 2020 ISBN:, 1, 1–28.
Azudin, A., & Mansor, N. (2018). Management accounting practices of SMEs: The impact of organizational DNA, business potential and operational technology. Asia Pacific Management Review, 23, 222–226.
Berisha, V., & Miftari, I. (2022). CFO and CEO Characteristics and Managerial Accounting Techniques ( MAT ’ s ) Usage : An Upper-Echelons Perspective. JEEMS, 27(2), 345–372. https://doi.org/10.5771/0949-6181-2022-2-345
Borges, P., Alves, M. do C., & Silva, R. (2024). The Activity-Based Costing System Applied in Higher Education Institutions: A Systematic Review and Mapping of the Literature. Businesses, 4, 18–38. https://doi.org/10.3390/businesses4010002
Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2022). Does remote work flexibility enhance organization performance? Moderating role of organization policy and top management support. Journal of Business Research, 139(February), 1501–1512. https://doi.org/doi.org/10.1016/j.jbusres.2021.10.069
Dikolli, S. S., Heater, J. C., Mayew, W. J., & Sethuraman, M. (2020). Chief Financial Officer Co-option and Chief Executive Officer Compensation. MANAGEMENT SCIENCE, 4(February), 1–17.
Fareed, M. Z., & Su, Q. (2022). Project Governance and Project Performance: The Moderating Role of Top Management Support. Sustainability Article, 14(December), 1–13. https://doi.org/doi.org/10.3390/su14052516
Ghanbari, M., & Vaseli, S. (2015). The Role of Management Accounting in the Organization. International Research Journal of Applied and Basic Sciences, 9(11), 1912–1915.
Ghazalat, A., Mansour, A. Z., Alkhasawneh, S., & Alhmood, M. A. (2025a). Investigating the effect of contingent factors on performance ofSMEs: The mediating role of management accounting system. Human Systems Management, 0(0), 1–20. https://doi.org/DOI: 10.1177/01672533251317072
Ghazalat, A., Mansour, A. Z., Alkhasawneh, S., & Alhmood, M. A. (2025b). Investigating the effect of contingent factors on performance ofSMEs: Themediating role of management accounting system. Human Systems Management 0(0), 0(0), 1–20. https://doi.org/DOI: 10.1177/01672533251317072
GIRMAY, M. (2017). Consequences of Financial Management Practices on Profitability on Selected Private Manufacturing Companies in Mekelle City. Research Journal of Finance and Accounting, 8(11), 1–23.
Gol, S. K., & Gol, M. K. (2025). Review Article: Review of Management Accounting Systems in Hospitals and Their Impact on Optimizing Pharmaceutical Costs. Eurasian Journal of Chemical, Medicinal and Petroleum Reseearch, 3(5), 263–273.
Gonçalves, T., & Gaio, C. (2020). The role of management accounting systems in global value strategies. Journal of Business Research, June, 0–2.
Gupta, M., & Galloway, K. (2003). Activity-based costing / management and its implications for operations management. Technovation 23, 23, 131–138. https://doi.org/10.1016/S0166-4972(01)00093-1
Haldorai, K., Kim, W. G., & Garcia, R. L. F. (2022). Top management green commitment and green intellectual capital as enablers of hotel environmental performance: The mediating role of green human resource management. Tourism Management, 88(2), 1–11. https://doi.org/doi.org/10.1016/j.tourman.2021.104431
Herliansyah, Y. (2018). Change of Management Accounting Practices. International Journal of Economics and Business Administration, VI(4), 3–13.
Ibrahim, S. A., Hassan, B. K., Mohammed, H., Mohammed, N., & Sangawi, S. S. (2025). Determinants of Banks Profitability in Kurdistan Region from 2009- 2020 : EISSN : 3006-9149 PISSN : 1813-1719 Determinants of Banks Profitability in Kurdistan Region from 2009- 2020 : Case Study of CIHAN Investment and Finance Bank. Tikrit Journal of Administrative and Economic Sciences, 20(68 part1), 494–510. https://doi.org/10.25130/tjaes.20.68.1.28
Jauhar, J., & Lau, V. (2018). The ‘Glass Ceiling’ and Women’s Career Advancement to Top Management: The Moderating Effect of Social Support. Global Business and Management Research: An International Journa, 10(1), 163–178.
Kamal Ahmad, K., Hasan Salih, K., & Saeed Sangawi, S. (2024). The Impact of Operating Cash Flow on Corporate Profitability: Amman Stock Exchange case study. Journal of Economics and Administrative Sciences, 30(140), 532–543. https://doi.org/10.33095/2gvf4697
Kesumawati, N. K. A., Putri, I. G. A. M. A. D., & Dwirandra, A. A. N. B. (2019). The Role of Business Strategies, Environmental Uncertainty and Decentralization as Moderating the Effect of Management Accounting Systems on Managerial Performance. International Research Journal of Management, IT & Social Sciences, 6(3), 37–45. https://doi.org/doi.org/10.21744/irjmis.v6n3.627 The
Ma, Y., Liu, Y., Appolloni, A., & Liu, J. (2021). Does green public procurement encourage firm’s environmental certification practice? The mediation role of top management support. Corporate Social Responsibility and Environmental Managment, 28(3), 1002–1017. https://doi.org/DOI: 10.1002/csr.2101
Macchia, S. (2019). A review on Management Accounting Change. What’s next? Economia Aziendale Online – Business and Management Sciences International Quarterly Review, 10(1), 107–134. https://doi.org/DOI: 10.13132/2038-5498/10.1.1955
Mahal, I. (2016). Activity-Based Costing ( ABC ) – An Effective Tool for Better Management Activity-Based Costing ( ABC ) – An Effective Tool for Better Management. In Journal of management (Vol. 15, Issue 1997, pp. 16–27).
Mahal, I., & Md. Akram Hossain. (2015). Activity-Based Costing ( ABC ) – An Effective Tool for Better Management. Research Journal of Finance and Accounting, 6(4), 66–74.
Mohammed, S. H., Salih, K. H., & Sangawi, S. S. (2024). The Impact of Accounting Information System Quality on Administrative Decision- Making in the Banking Sector in the Kurdistan Region/ Iraq. Iraqi Journal for Administrative Sciences, 20(82), 22–41.
Nath, P., & Bharadwaj, N. (2020). Chief marketing officer presence and firm performance : assessing conditions under which the presence of other C-level functional executives matters. Journal of the Academy of Marketing Science, 11(January), 1–25.
Pavlatos, O., & Kostakis, X. (2018). The impact of topmanagement team characteristics and historical financial performance on Strategic Management Accounting. Journal of Accounting & Organizational Change, 6(November), 1–20. https://doi.org/:doi.org/10.1108/JAOC-11-2017-0112
Pedroso, E., & Gomes, C. F. (2024). Disentangling the effects of top management on management accounting systems utilization. International Journal of Accounting Information Systems, 53. https://doi.org/doi.org/10.1016/j.accinf.2024.100678
Prokop, V., & Hajek, P. (2023). The role of top management meetings in enhancing product innovation and performance. R&D Management, 53(5), 745–763.
Qiao, L., Adegbite, E., & Nguyen, T. H. (2024). CFO overconfidence and conditional accounting conservatism. In Review of Quantitative Finance and Accounting (Vol. 62, Issue 1). Springer US. https://doi.org/10.1007/s11156-023-01188-7
Quesado, P., & Silva, R. (2021). Activity-Based Costing (ABC) and Its Implication for Open Innovation. Journal of Open Innovation, 41(7), 1–20. https://doi.org/doi.org/10.3390/joitmc7010041
Saedon, R., Ariffin, N. I., & Amir, A. M. (2023). Effect of Top Management Support on the Adoption of Activity-Based Costing in Malaysia Public University : Moderating Role of Technology. Asian Journal of Accounting and Governance, 20, 109–124.
Salmanzadeh, H., Kordestani, G., Kazemi, H., & Assistant. (2022). The Role of Management Accounting in Improving Management Control System in Public Sector. Iran Finance Association, 6(1), 54–82. https://doi.org/doi.org/10.30699/IJF.2021.279013.1211
Sangawi, S. S., Ahmed, hadi M., Mohammed, H. M. N., & Salih, K. H. (2023). An Investigation into the Impact of Profitability on Annual Growth Rate among the Listed Manufacturing Companies on the Iraqi Stock Exchange. Tikrit Journal of Administrative and Economic Sciences, 19(64), 720–739.
Shi, W. (2021). Analyzing enterprise asset structure and profitability using cloud computing and strategic management accounting. In PLoS ONE (Vol. 16, Issue 9 S, pp. 1–21). https://doi.org/10.1371/journal.pone.0257826
Vásquez, A. F. U., & David Naranjo-Gil 2. (2020). Management Accounting Systems, Top Management Teams, and Sustainable Knowledge Acquisition: E?ects on Performance. Sustainability, 12(5), 1–14. https://doi.org/doi:10.3390/su12052132
Vásquez, A. F. U., & Naranjo-Gil, D. (2020). Management accounting systems, top management teams, and sustainable knowledge acquisition: Effects on performance. Sustainability (Switzerland), 12(5), 1–14. https://doi.org/10.3390/su12052132
Whitler, K. A., Rego, L. L., Morgan, N. A., & Morgan, N. A. (2025). Chief marketing officer role design. Journal of the Academy of Marketing Science, 14(May), 1–22. https://doi.org/10.1007/s11747-025-01104-6
Zamrud, N. F., & Abu, M. Y. (2020). COMPARATIVE STUDY : ACTIVITY BASED COSTING AND TIME DRIVEN ACTIVITY BASED COSTING IN ELECTRONIC. JOURNAL OF MODERN MANUFACTURING SYSTEMS AND TECHNOLOGY, 4(1), 68–81.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Salar Hussein Mohammed, Rzgar Hama Rashid Ahmed, Kamaran Hussain Ahmad, Shakhawan Saeed Sangawi, Kaiwan Hasan Salih
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
