An analysis on the effect of accounting practices and accounting controls on the business performance among micro-, small-, and medium-scale enterprises (MSMEs) in Quezon City, Philippines

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ID: 284526
2023
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Abstract
Micro-, Small-, and Medium-Scale Enterprises in the Filipino community play a pivotal role in economic development. These enterprises do not only serve as a breeding ground for the business owners’ and entrepreneurs’ wealth but they greatly contribute to the generation of job employment and technological development. With adequate resources at hand, micro-, small- and medium enterprises’ ability to make well-informed business decisions translate to good organizational performance. The study assessed the effect of accounting practices and accounting controls on business performance using a Structural Equation Modeling (SEM) framework on Micro-, Small-, and Medium-Scale Enterprises (MSMEs) in Quezon City, Philippines. With the application of the Partial Least Squares - Structural Equation Modeling (PLS- SEM) statistical tool, the researchers gathered 161 respondents which were determined using the Inverse Square Root Method. The findings revealed that the accounting practices of a firm have a significant effect on its financial and non-financial measures of business performance. Moreover, the study also revealed that the accounting controls of a firm have a significant effect on its financial and non-financial measures of business performance.
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Authors Maglanque, Patrick Joseph Villegas
Journal Malay Journal
Year 2023
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