Codifying and Validating Management Accounting Practices Measurement Using Content Analysis and Word Embedding Model Using Word2Vec Method

Document Type : Research Paper

Authors

1 Ph.D. Candidate, Department of Accounting, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran.

2 Assistant Prof., Department of Accounting, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran.

10.22051/jera.2024.47623.3267

Abstract

Management accounting practices play an important role in business management and help companies survive in a competitive and ever-changing world. Appropriate measures of management accounting practices allow academics and practitioners to effectively evaluate the adoption of management accounting practices by companies. In this study, based on the qualitative information disclosed in the annual reports from 1392 to 1401, new and comprehensive measures for management accounting practices at the company level are designed using content analysis and word embedding model using word2vec method. In measuring textual metrics, using this method is very useful because it can capture the nuances of language and identify patterns in textual data. After developing textual measurement criteria, a series of validations including content validity, convergent validity, discriminant validity and reliability have been performed to confirm that the measurement criteria of management accounting practices really reflect the actual choices of companies. The results show that the fit and approval of the developed measures with the representative indicators of each management accounting practices’ dimensions in the industry indicate the effectiveness of the proposed measures. The new measurement of management accounting practices not only provides a solid foundation for empirical analysis in management accounting research, but also paves a new way to examine the status of companies regarding the extent of using management accounting practices.

Keywords

Main Subjects

Empirical Research in Accounting

Articles in Press, Accepted Manuscript
Available Online from 13 August 2024

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History

  • Receive Date: 01 July 2024
  • Revise Date: 09 August 2024
  • Accept Date: 13 August 2024

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