2015 Volume 23 Issue 1 Pages 73-87
The purpose of this study is to investigate the relationship between an internal control (IC) with a strategic performance measurement system (SPMS). It has been explained that a rigid IC supports effective management accounting systems. However, there is little empirical evidence on it Then, this study examines a mediation effect, in which a rigor of IC leads to performance through a development of SPMS, and a moderation effect, in which the effect of the development on performance depends on the degree of the rigor. Using survey data from 314 business units of Japanese listed companies, it appears that the rigid IC is indirectly related to performance through the development of SPMS, whereas the rigor weakens the positive effect of the development of SPMS on performance. These findings imply that IC has a great influence upon the effectiveness of management accounting systems. Implications and insights are discussed, along with ideas for future research.
