This study aims to investigate the accounting role’s deficiencies in managers’ decision-making processes.
The current research applies a critical review method, which along with a deductive approach – based on a library review of existing sources – examines the underlying causes for the deficiencies of accounting role in the decision-making process of managers; moreover, based on the results obtained, the current study proposes a structural model to explain the issue.
The results exhibit the inadequacies of the accounting role in the decision-making process of managers into three sections: “dilution of financial reporting information content,” “malpractice of accounting information providers” and “managers’ unwillingness to use accounting information.”
This research provides a new perspective on critical accounting studies for the accounting profession, policymakers and managers and invites them to examine the roles of accounting information in more depth and breadth.
This article is the first study that critically expounds upon the literature on the deficiencies of accounting role in the decision-making process of managers and presents these deficiencies in the form of a structural model from three different perspectives.
