Management accounting development in the healthcare sector : the case of hospitals in Abu Dhabi

Abstract

This study aims to examine the relationship between the management accounting development and three variables, namely, corporate governance, size, and ownership. A total list of (36) hospitals registered with HAAD and SEEHA of Abu Dhabi in the year 2010 was used as a sample for this study. Out of this list, 31 questionnaires were returned, which is equal to 86.1% of the total targeted hospitals. A survey was conducted using questionnaires to gather data from the respondents. The respondents were financial managers and the accounting managers. The study proposed that there is a direct relation between management accounting development and corporate governance, size and ownership; and a direct relation between management accounting development and the performance of the hospital. The result from this study indicates that there is no relation between management accounting development and corporate governance, However, the result shows negative significant relationship between size, ownership and MAD, plus negative significant relationship between MAD and hospital financial performance. This reflects the possibility of MAD was developed for more than for its impact on economic performance. As it is recognised in the literature that advanced MA adoption can be linked to managerial exercise of gaining stakeholder’ legitimacy, the findings of the study demand further investigations by examining this pertinent issue via other theorietical perspectives.