DECENTRALIZATION AND MANAGERIAL PERFORMANCE: A NOTE ON THE INTERVENING ROLE OF MANAGEMENT ACCOUNTING SYSTEM

Abstract

This study aims to examine whether management accounting systems (MAS) mediate the relationship between decentralization and managerial performance.  Responses of 52 managers of banking company in Kota Pekanbaru using questionnaire. The data were analyzed by using regression path analysis.  Based on the response analyses of those 52 operational, marketing and human resources managers, the research result show that there are significant direct and indirect effect between decentralization and managerial performance through the use of management accounting system.  The result indicated that higher decentralization and availability of management accounting system were associated with higher managerial performance. This study, therefore conclude that management accounting system mediate relationship between decentralization and managerial performance significantly.