Vo Tan Liem

University of Economics Ho Chi Minh City,

Viet Nam

liemncs@gmail.com

The impact of manager’s demographic characteristics on prospector strategy, use of management accounting systems and financial performance

Nguyen Ngoc Hien

Industrial University of Ho Chi Minh City

Viet Nam

nguyenngochien.qn@iuh.edu.vn

*Corresponding author

Abstract. Managers need the support of management accounting system (MAS) in making decisions and controlling activities. This article investigates the factors of CEO's personal characteristics that influence the choice of an appropriate prospector strategy and the intent of using MAS information. Besides, the moderating role of internal locus of control (ILOC) in such relationships was also examined in this research. The sample in this study includes CEOs of large and mid-sized companies in Vietnam. To test the hypotheses, we used the PLS-SEM method. The results indicate that all the effects are significant, except for the direct impact of age on financial performance and the moderating role of ILOC between education and the choices of prospector strategy. This study contributes to the accounting research field by confirming the role of managers’ characteristics, recognizing the important role of MAS and helping managers in designing MAS suitable with the specific characteristics of CEO. As a result, managers can operate firms more effectively.

Received: April, 2020

1st Revision: October, 2020

Accepted: December, 2020

DOI: 10.14254/2071-8330.2020/13-4/4

JEL Classification: C1, M4, M1

Keywords: education background, financial performance, internal locus of control, management accounting system