Relationship between Accounting Information and Decision Making in the Sri Lankan Manufacturing Sector

Abstract

AttachedAccounting information is used extensively by organizations in strategic decision making. This study analyses the relationship between accounting information and strategic decision making in the Sri Lankan manufacturing sector, specifically the relationship between accounting information and manufacturing and marketing related strategic decision making o f companies operating in Sri Lanka’s manufacturing sector. Sample for the study consisted o f 70 public quoted manufacturing companies operating in the country. The unit o f analysis for this research was at company level. Primary data for the study were collected via a questionnaire survey which was conducted with the Chief Executives Officers o f the selected manufacturing organizations. The relationship between accounting information and marketing and manufacturing related strategic decision making was analysed using Pearson's Correlation. Findings from the study indicated that accounting information has a statistically significant strong positive correlation with both marketing related strategic decision making and manufacturing related strategic decision making o f companies operating in Sri Lanka’s manufacturing sector