Contemporary Issues in Management Accounting

The following reports are based on academic research into innovative and topical areas of management accounting practice commissioned by CIMA. They cover topics ranging from corporate sustainability and digital transformation to the changing role of finance professionals. Each report highlights the key research findings and their relevance to the accounting and finance community.

Our latest published reports

Exploring the role of management accounting in building sustainability and resilience

This research led by Professor Leonardo Rinaldi from Royal Holloway University and based on two in depth case studies of global companies in the garment sector, explores the evolving role of management accountants in ensuring that organisations are equipped to withstand and adapt to various disruptions while maintaining long-term, sustainable practices.

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Algorithm Aversion in Internal Investment Decision-Making

As AI becomes more embedded in finance, understanding when people trust algorithmic advice is key. This report, led by Ruhr University Bochum, explores why employees often resist AI, even when it outperforms human judgment. It offers practical insights to help finance professionals overcome algorithm aversion and unlock AI’s strategic potential.

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How Management Accountants use Business Intelligence & Analytics: The road to improved decision-making.

Business Intelligence & Analytics are revolutionising the role of management accountants, with the potential to transform them into pivotal decision-making partners within organisations. This report, based on research conducted by Elize Kirsten from the University of Pretoria, explores the use of BI&A by management accountants in fifteen countries and 15 industry sectors. It identifies barriers to optimal adoption and highlights actionable recommendations to enhance their effectiveness in creating business value.
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Biodiversity accounting, management and reporting

Research led by Professor Warren Maroun from the University of the Witwatersrand in South Africa investigated the application of integrated thinking to biodiversity management and reporting by (1) drawing on insights from a panel of experts and (2) reviewing how a sample of South African and UK companies are currently addressing biodiversity as part of their external reporting to key stakeholders.

This report demonstrates how integrated thinking can be used to synthesise different sources of biodiversity information to construct a coherent account of environmental risks and performances and proposes a schematic with a range of biodiversity indicators and considerations. It also highlights how integrated thinking is taking hold but finds there is still a need for urgent improvements to existing management and governance practices.
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Leveraging Generative AI: AI-human Co-creation for Tasks Requiring Social Intelligence

A study led by Professor Jasmijn Bol from Tulane University in the USA investigated how generative AI performs in more complex situations, where factors such as tone, nuance, and emotional intelligence are crucial. The team conducted a series of experiments comparing human performance with AI support to human performance without AI support and explored different ways of integrating AI into complex tasks.

The findings indicate that feedback-based AI-human co-creation is particularly well-suited for ongoing, high-stakes tasks critical to organizational success but that for tasks not central to the organisation’s core operations, such as drafting a one-off email or preparing routine internal communication, it is advisable to let AI serve as the initiator.
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Bridging the Gap: The Role of Management Accountants in Cybersecurity Risk Management

In today's digital landscape, management accountants are pivotal in cybersecurity risk management.

This report examines their role in protecting sensitive financial data and implementing robust security measures. Key findings highlight their involvement in data protection, software investment decisions, and incident response. Emerging areas like cybersecurity insurance and industry benchmarking are also discussed, emphasising collaboration with IT and cybersecurity teams. This research undertaken by a consortium of universities in Australia and New Zealand provides practical guidance on essential skills and areas for upskilling to enhance cybersecurity competence.
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The Circularity Radar: A framework for the Circular Economy in retailing and manufacturing

This report, based on research undertaken by a team led by Professor Regina Frei from the University of Surrey, examines how Circular business models (CBMs) can provide a means to tackle the environmental problem of product returns and help make retail more sustainable. It proposes a tool, the Circularity Radar, for clothing retailers and manufacturers to conduct a self-assessment of their CBM’s and to identify opportunities for increasing their sustainability.
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Navigating Net Zero Transition Planning: Recommendations for Management Accountants

This report, developed by researchers from the University of Dundee, RSK, and METIS Institute for Climate Strategy, delves into the complexities of net zero transition planning through comprehensive analysis and real-world case studies in the UK and Singapore. It highlights the critical need for cross-functional collaboration, early involvement of finance teams, and enhanced climate literacy among management accountants, offering practical recommendations to bolster corporate climate resilience.
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The Chief Financial Officer (CFO): A study of role expectations, conflicts and ambiguity

This research, conducted by Professor Paul Thambar of Monash University in Australia, explored the evolving role of CFO through in -depth interviews with 12 CFOs from Australia and Sri Lanka across a range of industry settings.

The study reveals a range of conflicting and ambiguous expectations and explains how these expectations shape the CFO role and how role holders navigate the challenges related to these expectations.
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Challenges in reporting on the United Nations Sustainable Development Goals: a management accounting focus

This research, led by Matteo Molinari, senior lecturer in accounting and finance at the University of Roehampton in the UK, explored how management accountants within a large Italian multi-utility company contributed to the reporting and managing of two UN Sustainable Development Goals (Goal 7, Affordable and Clean Energy; and Goal 13, Climate Action), both of which are particularly relevant to companies operating in environmentally sensitive industries.

It presents a 7 steps-cycle of management accountants’ work to implement and purposely address the challenges embedded in SDGs reporting and also provides examples of Key Performance Indicators for the two SDG’s
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United or Divided? Governance mechanisms for integrating ESG into business practice

This study by a researcher from the Competence Centre for Economic, Ecological, and Social Sustainability at the Free University of Bolzano delves into the integration of Environmental, Social, and Governance (ESG) considerations within business practices and corporate reporting. The subject of this in-depth case study is a EU-based state-owned sustainable green tech company. The company exemplifies best practices by incorporating ESG factors into its business operations, including the establishment of compensation funds specifically earmarked for environmental expenses.
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ESG Reporting as a Driver of Value Creation: A case study of ABN AMRO

This report, by a group of researchers from the University of Roehampton, UCL School of Management, Luiss Business School and Kingston Business School, outlines the experience and commitment of ABN AMRO in the area of sustainability and ESG and explores channels through which the bank’s ESG proposition fosters value creation. While all organisations influence society, banks have a greater impact and play a vital role in driving the transition to a sustainable economy. This case-study focused on the banking sector is a deeper-dive into the banks role in achieving a sustainable economy and provides valuable recommendations on best practices.
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Supply Chain Performance Measurement: Practices for an alignment with SDGs

This collaborative study by the Università Politecnica delle Marche and Sant’Anna School of Advanced Studies delves into the integration of Sustainable Development Goals (SDGs) and associated targets within supply chains. Employing a multiple case study approach, the research explores methods for measuring and assessing the impact of these initiatives on SDGs. The report offers valuable insights to companies, practitioners, and management accountants, shedding light on the opportunities and challenges related to SDG integration within supply chains.
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Advancing the Circular Economy in Sri Lanka’s Manufacturing Sector: The role of management accounting

This study, led by a scholar from the University of Sri Jayewardenepura, Sri Lanka investigates the implementation of circular economy practices and circular economy business models (CEBM) in five local manufacturing firms within the tea, newspaper and food and beverage sectors.

The research found that for CEBM’s, management accounting serves as an important tool for management control and support, stewardship, performance measurement and decision-making but there is also a need to develop additional accounting tools to support CEBM implementation.

The report also sets out the implications for various stakeholder groups, including practitioners, policymakers and regulators, and recommendations for each group to consider and implement.
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Corporate sustainability performance management in the context of the United Nations’ Sustainable Development Goals.

This study, conducted by a research team from two German Universities Investigates corporate sustainability performance management practices at five multinational German corporations - BASF, Deutsche Post DHL, Evonik Industries, Merck, and Vaude. It also proposes a maturity model of corporate sustainability performance management and management accounting’s involvement comprising four levels (1) external reporting, (2) strategic thinking, (3) company-wide integration and (4) business partnering.
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Integrating the SDGs into capital investment decisions.

The research conducted by a group of scholars from the Institute of Management, Sant’Anna School of Advanced Studies and Dipartimento di Management, Università Politecnica delle Marche found that there is a requirement to encourage thinking about the influence of capital investments on the Sustainable Development Goals (SDGs). This can be achieved by utilizing a framework that accounts for direct, indirect, and uncertain effects, as well as the 5 dimensions of impact management.
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Predictive Analytics: Should there be a “human in the loop”?

This research set within a large US-based automotive parts retailer provides important insights on the usage of predictive analytics in the business world. It shows that as businesses strive to navigate an increasingly complex landscape, the integration of human expertise and predictive analytics emerges as a key strategy for achieving superior outcomes.
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Calculating Sustainability: Can accounting save the world?

The research, conducted by a group of scholars from Alliance Manchester Business School, Manchester University and SDA Bocconi School of Management, Bocconi University, proposes a new Sustainable Value Table (SVT) to reconcile the financial and non-financial dimensions (specifically the Sustainable Development Goals) of business performance and corporate reporting.
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Making the circular economy a reality for SME’s.

As the Circular Economy (CE) gains momentum worldwide, Small and Medium Enterprises (SMEs) are still grappling with achieving sustainable value creation and competitiveness. This research by a group of scholars at the Pontificia Universidad Javeriana, Universidad de Alcala, Universidad de Sabana and Universidad de Navarra introduces a Circular MooD Model, a novel virtual tool that enables Management Accountants and more generally the finance function to assess the implementation level of CE in Latin American SMEs.
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Pricing trends for management accountants

This report summarizes changes in pricing theory and the impact of those changes on the role of the management accountant and is based on research undertaken by Professor David Dugdale from Bristol University in the writing of his textbook Strategic Pricing and Management Accounting. It particularly focusses on value-based pricing and highlights a number of opportunities for management accountants to work as business partners with marketing managers.
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Purpose to Impact: How accounting and reporting practices pave the path to Sustainable Value Creation

This study led by Professor Cristiano Busco from LUISS University outlines a holistic Purpose to Impact framework to successfully pursue Sustainable Value Creation in the current uncertain times. It explores how finance professionals, utilizing the principles and practices of integrated thinking, can support enlightened leaders in steering their organisations to sustainable success.
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Building and enhancing organisational resilience: Before and after COVID-19

This project, led by a University of Roehampton scholar, seeks to investigate the effect of the pandemic on businesses awareness of organisational resilience. The study is highly relevant at a time businesses are faced with emerging, novel risks and disruptions, such as climate change and associated events. It aims to help management accountants to prepare for forthcoming threats, whether anticipated or unforeseen.
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Management Accounting for Climate-related Financial Disclosures

In 2017, the Task Force for Climate Related Financial Disclosures (TCFD) released recommendations to address the need for reliable corporate disclosure of climate-related information. This research, from RMIT and University of Tasmania, explores how management accountants can contribute to the development of appropriate climate-related scenarios and to better integrate their management accounting expertise into organisational climate change strategy.
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The effect of dynamic capabilities on performance and digital business strategy

This research, conducted by a team from Maastricht University, investigated the effect of dynamic capabilities (the ability to adapt internal and external competencies in response to rapidly changing environments) on the implementation of an organisation's digital business strategy and on business unit performance within a large German automotive manufacturing company.
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Seven steps to technological innovation: The case of the Australian and Italian wine industry.

This research, conducted by scholars from the university of South Australia, investigates the drivers, barriers and benefits of technological innovation (including block-chain, Internet of Things (IoT), robotics and Industry 4.0 applications) and the role of management accountants in managing innovation projects within the Australian and Italian wine industry
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From digitisation to digital transformation

This research undertaken by a team from Essec Business School investigates the work, challenges and roles of French and German management accountants in the digital age. It found that management accountants are strongly engaged in the digitisation of their companies and play an important role in the digital transformation through their involvement in data quality and IT system harmonization.
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Employee Trust: determinants and consequences of employee perceptions of organisational trustworthiness.

Inspiring trust has been long acknowledged as the key to successful management but relatively little is known about how employees form trust perceptions. A study, by researchers at Maastricht and Tulane Universities and conducted within privately owned North American pharmacy by reveals that perceptions of the organisation’s benevolence, integrity and ability influence trust perceptions.
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The impact of predictive forecasting on corporate control.

Forecasting is essential for managers to steer businesses in dynamic environments and to manage relations with external stakeholders. A study of two large multi-national companies conducted by a team from Monash University explored to how predictive analytics-based forecasts were used at a corporate level and how they contribute to managing organisations.
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