Use of Management Accounting Practices in Nepalese Life Insurance Companies

Abstract

One of the important factors which determine the performance of a business organization is effective use of financial and management accounting system. This study aimed at examining the use of management accounting practices on the organizational performance of Nepalese life insurance companies. The study was positioned within a quantitative research approach and data was collected from 60 staffs of five companies who were selected by using convenience sampling technique. The MS-Excel 2010 and Statistical Package for the Social Sciences (SPSS), version 20.0, were used to analyze data. Regression analysis was undertaken in order to check the association between management accounting practices and organizational performance. The hypothesized relationships in the research model were assessed using multiple regression analysis. Associations between each management accounting practice and organizational performance was tested and the results showed that Budgeting and planning, Controlling and reporting and decision making are positively influences the organizational performance of Nepalese life insurance companies. Costing is negatively associated with the organizational performance of Life insurance companies. The empirical study provided fruitful implications to academicians by making a significant contribution to the management accounting literature by systematically exploring the influence of management accounting practices (MAPs) on the organizational performance of Nepalese life insurance companies. This study therefore, stands to immensely contribute new knowledge to the existing body of management accounting literature in Nepal. A context that is often most neglected by some researchers in developing countries.