Determinants of accounting methods choice in Tanzania: a positive accounting theory approach

WAWERU, N., NTUI, P. and MANGENA, M., 2011. Determinants of accounting methods choice in Tanzania: a positive accounting theory approach. Journal of Accounting in Emerging Economies, 1 (2), pp. 144-159. ISSN 2042-1168


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The purpose of this study is to investigate the factors which influence the choices of accounting policies by managers of companies in Tanzania. Previous studies show that managers may choose income increasing or income decreasing accounting policies in reporting financial results (Beattie et al., 1994; Astami & Tower, 2006; Bowen & Shores, 1995).These studies also examine a number of factors that influence the managers' incentives for accounting choice. However, there are reasons to suggest that more research is required. First, most of these studies have tended to focus on firms in the developed countries (see Inoue & Thomas, 1996; Cullinan, 1999; Lin & Peasnell, 2000) and in countries in the Asia- Pacific region (Rahman & Scapens, 1988; Tawfik &, 2006; Astami & Tower, 2009). Consequently, there are no studies that have examined managerial accounting methods choices in the context of Africa. The findings from developed countries and the Asia-Pacific region may not be relevant to Africa because the environment is different, for example, the stage of economic development is very low, financial markets are inefficient and underdeveloped, and regulatory framework for accounting is weak and compliance with accounting rules is low (see Okeahalam, 2004). This study is the first attempt to examine what motivates managers to choose one accounting method over another in an African country- Tanzania.

Item Type: Journal article
Publication Title: Journal of Accounting in Emerging Economies
Creators: Waweru, N., Ntui, P. and Mangena, M.
Publisher: Emerald
Place of Publication: Bingley
Date: 2011
Volume: 1
Number: 2
ISSN: 2042-1168
Divisions: Schools > Nottingham Business School
Depositing User: EPrints Services
Date Added: 09 Oct 2015 09:58
Last Modified: 09 Jun 2017 13:15

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