Determinants of audit expectation gap: the case of Cameroon

2020 ◽  
Vol 33 (4/5) ◽  
pp. 561-576
Author(s):  
Michael Forzeh Fossung ◽  
Lazarus Elad Fotoh ◽  
Johan Lorentzon
Keyword(s):  
Cultural Values ◽  
Developing Country ◽  
Current Knowledge ◽  
Financial Statements ◽  
Financial Statement ◽  
Survey Method ◽  
Future Research ◽  
Content Type ◽  
Expectation Gap ◽  
Audit Regulation

Purpose This study aims to identify the determinants of the expectation gap between financial statement users (investors and bankers) and auditors from a developing country perspective with Cameroon as the case study. Design/methodology/approach This study makes use of the survey instrument to identify the determinants of the expectation gap in Cameroon. The research method and research design used for this study are similar to that adopted in Schelluch, Best et al., Fadzly and Ahmed, Desira and Baldacchino and Dixon et al. Findings The results indicate that audits and audited financial statements and auditors’ skills are good predictors of the audit expectation gap (AEG), whereas gender, years of experience and occupation (investors and accountants) do not have any significant influence on the AEG. It follows that the expectation gap is further widened by an increase in the regulation and duties of auditors concerning the reliability and usefulness of audits and audited financial statements and auditors’ skills. Research limitations/implications A limitation of this study is the sample size, which is limited in scope, with only 400 potential respondents. In addition, this study adopted a survey method used in countries with different economic views and cultural values from Cameroon. Practical implications This study contributes to current knowledge by identifying the determinants of the expectation gap in Cameroon, thus facilitating the adoption of measures aimed at mitigating this gap such as educating the Cameroonian public on the auditors’ duties, especially each time a new audit regulation is adopted. The paper is a critical reference point for future research on the subject in Cameroon. Originality/value This study contributes to the expectation gap discourse by uncovering the determinants of the expectation gap from a developing country perspective of Cameroon with a different economic and cultural outlook.

Analysts’ forecasts timeliness and accuracy post-XBRL

2019 ◽  
Vol 27 (1) ◽  
pp. 151-188
Author(s):  
Sherwood Lane Lambert ◽  
Kevin Krieger ◽  
Nathan Mauck
Keyword(s):  
Critical Role ◽  
Forecast Accuracy ◽  
Financial Statements ◽  
Analyst Forecasts ◽  
Financial Statement ◽  
Future Research ◽  
Content Type ◽  
Cent Error ◽  
The Impact ◽  
The Relationship

Purpose To the authors’ knowledge, this paper is the first to use Detail I/B/E/S to study directly the timeliness of security analysts’ next-year earnings-per-share (EPS) estimates relative to the SEC filings of annual (10-K) and quarterly (10-Q) financial statements. Although the authors do not prove a causal relationship, they provide evidence that the average time from firms’ filings of 10-Ks and 10-Qs to the release of analysts’ annual EPS forecasts during short timeframes (for example, 15-day timeframe from a 10-K’s SEC file date) subsequent to the 10-K and 10-Q filing dates significantly shortened with XBRL implementation and then remained relatively constant following implementation. Design/methodology/approach Using filing dates hand-collected from the SEC website for 10-Ks during 2009-2011 and filing dates for 10-Ks and 10-Qs during 2003-2014 input from Compustat along with analysts’ estimated values for next year EPS, actual estimated next year EPS realized and estimate announcement dates in Detail I/B/E/S, the authors study the days from 10-K and 10-Q file dates to announcement dates and the per cent errors for individual estimates during per- and post-XBRL eras. Findings The authors find that analysts are announcing next-year EPS forecasts significantly more frequently and in significantly shorter time in zero to 15 days immediately following 10-K and 10-Q file dates post-XBRL as compared to pre-XBRL. However, the authors do not find a significant change in forecast accuracy post-XBRL as compared to pre-XBRL. Research limitations/implications Because this study uses short timeframes immediately following the events (filings of 10-Ks and 10-Qs), the relationship between 10-Ks and 10-Qs with and without XBRL and improved forecast timeliness is strengthened. However, even this strengthened difference-in-difference methodology does not establish causality. Future research may determine whether XBRL or other factors cause the improved forecast timeliness the authors’ evidence. Practical implications This improved efficiency may become critical if financial statement reporting expands as a result of new innovations such as Big Data and continuous reporting. In the future, users may be able to electronically connect to financial statement data that firms are maintaining on a perpetual basis on the SEC website and continuously monitor and analyze the financial statement data dynamically in real time. If so, then unquestionably, XBRL will have played a critical role in bringing about this future innovation. Originality/value Whereas previous studies have utilized Summary IBES data to assess the impact of XBRL on analyst forecasts, the authors use Detail IBES to study the effects of XBRL adoption directly by measuring days from 10-K and 10-Q file dates in Compustat to each estimate’s announcement date recorded in IBES and by computing the per cent error using each estimate’s VALUE and ACTUAL recorded in Detail IBES. The authors are the first to evidence a significant shortening in average days and an increase in per cent of 30-day counts in the zero- to 15-day timeframe immediately following the fillings of 10-K s and 10-Qs.

Social capital in the theory and research of LIS professionals in the light of the literature on the subject. Review of current knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maja Dorota Wojciechowska
Keyword(s):  
Social Capital ◽  
Current Knowledge ◽  
Future Research ◽  
Content Type ◽  
Individual Social Capital ◽  
Rural Libraries ◽  
The Subject ◽  
The Moment ◽  
The Impact

Purpose The purpose of the paper is to present the latest scholarly trends in the field of social capital in libraries, to review research concepts published by LIS professionals and to suggest further research possibilities in this area. Design/methodology/approach This paper presents a review and critical analysis of literature associated with research on social capital in libraries to highlight its importance for the development of LIS and its impact on the functioning of environments linked with various types of libraries. The goal of literature analysis was to determine the current condition of research on social capital in libraries. The main trends were identified and the need for further qualitative analyses, which are missing at the moment, was confirmed. Findings It was determined that, so far, LIS professionals have focussed mainly on the role of municipal libraries in developing social capital, the problem of building trust, especially in immigrant circles and the impact of libraries on promoting a civil society. Academic libraries, rural libraries, organisational capital in libraries and individual social capital of librarians were a much less frequent subject of research. The role of libraries in developing social capital in educational (primary and secondary education) and professional (non-university professionals) circles is practically non-existent in research, and it will require in-depth studies and analyses in the coming years. Originality/value This paper constitutes a synthetic review of the latest research concepts concerning social capital in libraries. It identifies the most important research trends and areas that so far have not been explored and suggests research methods to help LIS professionals design future research in this area more effectively.

Impact of perceived organizational support and green transformational leadership on sustainable organizational performance: a SEM approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manita Kusi ◽  
Fuqiang Zhao ◽  
Dinesh Sukamani
Keyword(s):  
Transformational Leadership ◽  
Organizational Performance ◽  
Organizational Support ◽  
Perceived Organizational Support ◽  
Current Knowledge ◽  
Future Research ◽  
Content Type ◽  
The Relationship ◽  
Staff Level

PurposeThe study aims to scrutinize the concomitant associations between corporate social responsibility (CSR), perceived organizational support (POS), green transformational leadership (GTL) and organizational performance (OP). This paper aims to explore the role of intervening variable to measure the strength on the relationship between CSR and OP.Design/methodology/approachThis research administered a survey through self-administered questionnaire among the staff-level employees of construction companies of Nepal. Fully filled 305 responses from the participants were analyzed using a structural equation model. The study used self-structured questionnaire as research tool and face-to-face meetings as data collection technique.FindingsThe research indicates that POS showed competitive partial mediation relation between CSR and OP. Besides, a novel exploration of the moderation effect of GTL displays a supportive role in harmonizing the CSR with organizational support to achieve better OP. This study enriches empirical evidence to understand the linkage between CSR and POS in staff-level employees in the construction area. Moreover, the research shed a light on GTL 's moderating influence on the mediated model of CSR, POS and OP.Research limitations/implicationsAlthough the results of the study add to the current knowledge base, several limitations highlight avenues for future research. Future studies can explore the relationship in other study areas with added evidence on a similar result with different analysis patterns and study sample. The research model studied in the context of Nepal creating evidence as a representation for the developing countries.Originality/valueThe intervening role of POS and GTL gives new insight for the research-based organization based social behavior and performance

Trust, commitment, logistics outsourcing relationship quality, relationship satisfaction, strategy alignment and logistics performance – a case of selected manufacturing firms in Uganda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matthew Kalubanga ◽  
Sheila Namagembe
Keyword(s):  
Relationship Satisfaction ◽  
Relationship Quality ◽  
Developing Country ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Future Research ◽  
Logistics Outsourcing ◽  
Content Type ◽  
Positive Effects ◽  
Strategy Alignment

PurposeThis study examines the relationships among trust, commitment, logistics outsourcing relationship quality (LORQ), relationship satisfaction, strategy alignment and logistics performance considering selected manufacturing firms in a developing country, Uganda.Design/methodology/approachDrawing on insights from the commitment-trust theory and strategy alignment literature, and using a cross-sectional survey design with a self-administered questionnaire, and applying the partial least squares structural equation modeling (PLS-SEM) approach to analyze quantifiable data obtained from managers of 103 manufacturing firms in Uganda outsourcing logistics operations, the study examined the logistics performance effects of trust, through commitment, LORQ and relationship satisfaction.FindingsThe study findings reveal that trust influences logistics performance, indirectly through its effects on commitment, LORQ and relationship satisfaction, sequentially, and that the positive effects of relationship satisfaction on logistics performance strengthen with improvements in LORQ. Strategy alignment exerted a strong positive influence on LORQ.Research limitations/implicationsThe study findings have important implications for theory development and literature. The study applies the commitment-trust view to both theoretically and empirically examine logistics outsourcing as a competitive strategy to enhance logistics performance, and thereby providing a theoretical base for future research. However, this research is confined to manufacturing firms in Uganda, and the results are not necessarily generalizable to other contexts.Practical implicationsThe study findings provide insights for logistics managers regarding the role of trust, commitment, LORQ, relationship satisfaction and strategy alignment in enabling successful logistics outsourcing relationships, and how drawing on these, managers can improve firm logistics performance.Originality/valueThis study contributes to logistics management literature by empirically examining the relationship of trust, commitment, LORQ, relationship satisfaction and strategy alignment with logistics performance, considering manufacturing firms in a developing country, where these aspects have not been largely explored before. It highlights the need to build trust, promote greater commitment of logistics user firms in logistics outsourcing relationships as well as aligning logistics outsourcing strategies to improve LORQ and enhance logistics performance. Additionally, the study provides for the first-time new evidence for the moderation effect of LORQ on the influence of relationship satisfaction on logistics performance. The study findings suggest advancing further scholarly discussions on logistics outsourcing as a critical strategy to enhance firm logistics performance within a developing country context. Due to limitations in logistics infrastructure, and existing low-level technologies, logistics in developing countries still revolves around conventional materials handling, packaging, inventory and transportation operations, and logistics outsourcing is new, thereby presenting an interesting research context for empirical investigations on logistics in general, and logistics outsourcing in particular.

scholarly journals Gender differences in motivations to attend festivals in Saudi Arabia

2019 ◽  
Vol 33 (2) ◽  
pp. 126-141
Author(s):  
Faten Alshammari ◽  
Jeremy Whaley ◽  
Songyee Hur ◽  
Youn-Kyung Kim
Keyword(s):  
Gender Differences ◽  
Saudi Arabia ◽  
Network Analysis ◽  
Cultural Values ◽  
Quantitative Methods ◽  
Future Research ◽  
Gender Analysis ◽  
Content Type ◽  
Qualitative And Quantitative Methods ◽  
Saudi Arabians

PurposeThe purpose of this paper is to conduct a within-gender analysis and between-gender differences in seeking (personal and interpersonal) and escaping (personal and interpersonal) motivations to attend a non-traditional festival in Saudi Arabia. Specific objectives were: to conduct a within-gender analysis in motivations to attend a non-traditional festival in Saudi Arabia; and to examine between-gender differences in motivations to attend a non-traditional festival in Saudi Arabia.Design/methodology/approachBased on the data collected from 458 attendees at a non-traditional festival in Saudi Arabia, the authors employed network analysis for within-gender analysis and MANOVA and ANOVA for between-gender comparison. The network analysis served two purposes, in that it examined each item’s predictability for each gender, and analyzed the correlations among motivation items within each gender. In addition, the General Linear Model served to compare the male and female groups’ motivations to attend the non-traditional festival. The authors first performed MANOVA for each dimension and then ANOVA for each dimension’s individual items.FindingsWithin-gender analysis reveals that several sets of motivations were associated strongly for both genders. This suggests that Saudi Arabians seem to enjoy entertainment because it projects the festival mood; they want to escape both from home and work and attend the festival to relieve stress by changing their routine pace. However, gender differences were apparent in several other items, especially for the group of women. Between-group comparison analysis shows significant gender differences in several elements of motivation. Overall, personal seeking and escaping were greater for males than females. In contrast, interpersonal seeking was greater for females than males.Research limitations/implicationsEntertainment seems to be a key contributor to the festival mood because entertainment and the festival mood were related closely for both genders. In fact, personal and interpersonal escaping means were greater than personal interpersonal seeking means for both genders. Indeed, opportunities exist to develop non-traditional festivals in the country further. Gender differences were identified in several items of personal seeking and escaping, and interpersonal seeking. With respect to personal seeking, men tend to seek the entertainment, festival mood and the event’s uniqueness more than do women, a finding that their higher means in personal escaping supported. It is clear that men view the festival as a way to enjoy themselves to escape from their jobs and daily stress to a greater degree than do their female counterparts. Women are more likely to seek interpersonal experiences in that they are more likely to enjoy the festival because it offers the opportunity to meet new people and spend quality time with family and friends. This study has several limitations, leading to suggestions for future research. Because seeking and escaping motivations have been used relatively little in the festival setting, future researchers should develop a valid scale of personal and interpersonal seeking and escaping motivations specifically for festivals employing both qualitative and quantitative methods. Second, while the data were collected at a single non-traditional festival, future research can use multiple sites to increase the ability to generalize the findings. Third, although this study was limited to Saudi Arabia, further research can apply seeking and escaping motivations, both at the personal and interpersonal levels, to other cultures to extend the applicability of the framework used in this study.Practical implicationsNon-traditional festival managers need to focus on an atmosphere that provides festivities, as many people in the Saudi Arabian culture appear to be escaping from their everyday lives to enjoy themselves and with family and friends. To appeal to male workers, festival organizers and managers need to advertise and market the events’ mood and liveliness overall with photos of workers leaving the office free of stress and looking forward to attending an event. To appeal to women who desire unique experiences that a variety of forms of entertainment provide, event managers must ensure that the entertainment is innovative and creative, and differs from what other festivals provide to attract more female attendees. Also, festival planners must focus on events that incorporate the family unit and promote the opportunity to meet new people to appeal to women in Saudi Arabia.Originality/valueThis is the first study to examine gender differences in festival motivations in Saudi Arabia. The relaxation of the historically strict and conservative cultural values, coupled with the country’s desire to develop its tourism and event sector, provides an ideal opportunity for future research. The authors hope that this research will stimulate further interest in the country with the goal to develop and market its tourism sector and products on the world’s stage.

The expectation differences among stakeholders in the financial valuation fitness of auditors

2016 ◽  
Vol 17 (1) ◽  
pp. 43-60 ◽  
Author(s):  
James Anthony DiGabriele
Keyword(s):  
Response Bias ◽  
Financial Statements ◽  
Fair Value ◽  
Content Type ◽  
Financial Valuation ◽  
University Curriculum ◽  
Expectation Gap ◽  
Significant Difference ◽  
Accounting Practitioners ◽  
Market Expectations

Purpose – The purpose of this paper is to investigate if there is an expectation gap among accounting academics, accounting practitioners, and users of financial statements in the financial valuation fitness of auditors. Complex reporting standards and current market expectations have the potential to create differences between what third-party users consider to be the responsibilities of the auditor and what auditors believe to be their responsibilities in auditing fair value estimates. Design/methodology/approach – This study surveys the perceptions of accounting academics, accounting practitioners, and users of financial statements and the degree to which an expectation gap exists in the financial valuation fitness of auditors. Survey respondents chose from a five-point Likert scale ranging from “strongly agree” to “strongly disagree.” Findings – This paper proposes two hypotheses. The results for all nine survey items have provided significant evidence that there is a difference in the expectation of the financial valuation fitness of auditors between users of financial statements and accounting practitioners (H1). Additionally, the findings for all survey items present support there is a significant difference in the expectation of the financial valuation fitness of auditors between accounting academics and users of financial statements (H2). Research limitations/implications – A limitation of the current study, as an inherent attribute with survey research, is non-response bias. The only way to evaluate this was to test late responses to earlier results. There were no significant results in these analyses. According to Fink (2003), if there are no significant differences in this indicator the likelihood of non-response bias is extremely low. Hence, this limitation did not have serious implications on the current study. Practical implications – The implications of this study affect the accounting academic community as they prepare students in response to the evolving market expectations (Pan and Perera, 2012). Previous research has pointed toward the sluggish reaction for change in the accounting curriculum relative to external demands (Harvey, 2004; Pan and Perera, 2012). The results of this study also have resonating effects for accounting practitioners. The marketplace expects accountants to be “knowledge professionals” (Carnegie and Napier, 2010). Regulators continue to ask auditors to find more fraud and understand financial valuation (Pan and Perera, 2012). Social implications – Contemporary accounting practice is moving beyond the scope of quantitative recording of historical financial information. Ignoring integral market transformations could result in lower quality audits with corresponding increased litigation against auditors for negligence (Pearson, 2011). Originality/value – This study is important for several reasons. First, users of financial statements have expressed the necessity for auditors to acquire financial valuation skills (Christensen et al. (2012). Therefore, the evidence obtained from users of financial statements in this research will be critical guidance to reconcile expectations. Second, accounting educators have not provided a significant response to teaching fair value concepts in the university curriculum (Carlino, 2012; Hanson, 2013). This research presents a clarion call to accounting educators to align university curriculum toward market expectations (Christensen et al., 2012). Third, the practitioner community has also been criticized for audit deficiencies in fair value. It is critical to understand if additional training in financial valuation is necessary to improve the fair value judgments of practitioners and meet stakeholder’s expectations. Accordingly, the study provides a contribution to practice. Finally, this paper answers the call by Christensen et al. (2012) for future research on the topic of fair value: to “mirror the categories of recommendations of regulators and standard setters.”

scholarly journals Engineering project networks: providing “sustainable work systems” for construction knowledge workers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
M. Reza Hosseini ◽  
David John Edwards ◽  
Tandeep Singh ◽  
Igor Martek ◽  
Amos Darko
Keyword(s):  
Construction Industry ◽  
Current Knowledge ◽  
Work Life ◽  
Quality Of Work Life ◽  
Work Place ◽  
Future Research ◽  
Engineering Project ◽  
Content Type ◽  
Project Networks ◽  
Life Issues

Purpose The construction industry faces three emergent developments that in all likelihood will transform the industry into the future. First, engineering project networks (EPNs), in which teams collaborate on projects remotely in time and space, are transforming global construction practices. Second, as a major consumer of resources and significant producer of green-house gases, construction is under pressure to reduce its carbon footprint. Third, the construction industry presents as one of the least socially sustainable work environments, with high job dissatisfaction, skewed work–life balance and over representation of depressive and mental disorders. It is incumbent on the industry to reconcile these issues. Specifically, what scope is there to shape the evolution of EPNs towards a configuration that both promotes sustainability generally, and enhances quality of work-life issues, while at the same time continuing to apprehend the economic dividends for which it is adopted? As salient as this question is, it has not been broached in the literature. Therefore, this study aims to survey the extent to which EPNs align with the sustainability agenda, more broadly, and that of employee work-place satisfaction, more specifically. Design/methodology/approach A literature review of current knowledge of these concerns is explored and a summative assessment presented. Findings To the best of the authors’ knowledge, as the first in its kind, the study brings to light that EPNs go a long way towards facilitating economic objectives, part way towards realising ecological and sociological objectives but make hardly any impact on improving employee work satisfaction. Originality/value This paper examines an entirely novel area that has not been studied yet. Future research should take up this finding to determine how EPNs may be further adapted to accommodate these wider necessary objectives.

scholarly journals Perceptions of Educators, Accounting Students and Accountants Public Accountant against Ethics of Financial Statement Preparation (Studies at University and KAP in Semarang)

2021 ◽  
Vol 4 (1) ◽  
pp. 89-101
Author(s):  
Imam Prayogo ◽  
Teuku Afrizal
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Accounting Students ◽  
Survey Method ◽  
Analysis Tool ◽  
Validity And Reliability ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Public Accountant

This study aims to examine differences in perceptions between teaching accountants, accounting students, and accountants on the ethics of preparing financial statements. Ethical indicators for the preparation of financial statements are represented in earnings management, misstatements, disclosures, cost-benefits, and responsibilities. This research was conducted at universities and public accounting firms in Semarang. This research was conducted with a survey method of 70 respondents from teaching accountants, 75 accounting students, and 40 accountants respondents at universities and public accounting firms in Semarang. As an analysis tool, ANOVA is used for hypotheses H1, H2, H3, and H4. Before testing the hypothesis, first the validity and reliability tests are carried out for all the questionnaires that have been collected. Validity and reliability tests show that all data are valid and reliable. Then the questionnaire was tested by ANOVA and strengthened by the Independent Sample T Test. Anova results show that there are differences in perceptions between teaching accountants, accounting students and accountants. However, there was no difference in perceptions between teaching accountants and accountants. Therefore it can be concluded that there are differences in perceptions between teaching accountants, accounting students, and accountants on the ethics of preparing financial statements.

Business model innovation: past research, current debates, and future directions

2017 ◽  
Vol 10 (3) ◽  
pp. 342-359 ◽  
Author(s):  
Mokter Hossain
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Systematic Literature Review ◽  
Current Knowledge ◽  
Past Research ◽  
Business Model Innovation ◽  
The Body ◽  
Future Research ◽  
Content Type ◽  
Body Of Knowledge

Purpose The purpose of this paper is to provide state-of-the-art knowledge about business model innovation (BMI) and suggest avenues for future research. Design/methodology/approach A systematic literature review approach was adopted with thematic analysis being conducted on 92 articles. Findings The body of knowledge for this concept is in its infancy and is highly fragmented. This study therefore attempts to consolidate this fragmented knowledge. It reveals dominant themes, establishes coherence, and identifies conflicting arguments in the current literature. It also points out gaps in the research and highlights new directions for research. Research limitations/implications This study analyzed articles that were found based on a systematic literature review approach. Practical implications This study identifies some fundamental issues that managers need to understand regarding BMI. Originality/value The main value of this study lies in its synthesis of the current knowledge of BMI.

Performance measurement and management for manufacturing SMEs: a financial statement-based system

2017 ◽  
Vol 21 (1) ◽  
pp. 17-36 ◽  
Author(s):  
Moujib Bahri ◽  
Josée St-Pierre ◽  
Ouafa Sakka
Keyword(s):  
Performance Measurement ◽  
Low Cost ◽  
Secondary Data ◽  
Specific Area ◽  
Financial Statements ◽  
Financial Statement ◽  
Business Practices ◽  
Content Type ◽  
Overall Performance ◽  
Probabilistic Sample

Purpose The purpose of this paper is to propose a performance measurement and management system (PMMS) for small- and medium-sized enterprises (SMEs) based on an analysis of the connections between the firm’s business practices and financial results as reported in the financial statements. Design/methodology/approach Secondary data on the business practices and financial statements of 108 Canadian manufacturing SMEs were taken from a private database. Items from financial statements were used to measure the firm’s performance in specific areas such as sales and current assets management, while net profit was used to measure the overall performance. Information about the level of adoption of more than 120 business practices by the sampled firms was also used. Step-wise regression was then performed for two consecutive years to identify the business practices that had significantly influenced the items in the financial statements. Findings The findings show that an understanding of the business practice/financial statement connection can be useful in managing SME performance. The regression analyses provide rich and interesting results. They indicate that some practices influence performance quickly, while others have a deferred effect. In addition, some practices have impacts that are significant in specific areas of the organization but insignificant in terms of overall performance, while others affect the firm’s overall performance but not the specific area they are intended to improve. Research limitations/implications The main limitation of the study is the non-probabilistic sample. However, the sampled SMEs vary widely in their characteristics, which should partially mitigate the negative impacts of a non-probabilistic sample. Practical implications The paper offers a useful and low-cost PMMS for SMEs, using information that is easily available to owner-managers. It shows that SME performance can be managed using a simple system built around the firm’s financial statements. Originality/value The study is one of the first to empirically test the connection between an extensive list of SME business practices and the financial results presented in the firms’ financial statements.

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