International Journal of Finance and Accounting 2014, 3(5): 310-315
DOI: 10.5923/j.ijfa.20140305.05
The Major Role Accountants Play in the Decision
Making Process
Samer Tout
1
, Khalil Ghazzawi
2,*
, Sam El Nemar
3
, Radwan Choughari
4
1
Chairman of Finance, School of Business, Lebanese International University, Lebanon
2
Assistant Professor, School of Business, Lebanese University, Lebanon
3
School of Business, Lebanese International University, Lebanon
4
Lebanon Assistant Professor of Management, Jinan University of Lebanon JUL
Abstract From a broad perspective, reporting is one of the significant objectives for an accountant, due to its major effect
in highlighting and examining the financial information of a company. The quality of reporting financial information is an
international issue and the decision making skills of the accountant plays a major role in reaching the overall company
objectives. Our aim for this study is examining the role Lebanese Accountants play in the decision making process. This
paper will contribute to the understanding of an accountants’ role in the formulation of company decisions. This research will
reveal the most important factors that lead to increasing accountant’s involvement in the managerial process of Lebanese
companies. A survey was administered in order to associate what managerial contribution do Lebanese accountants make. A
statistical analysis was applied in order to identify and examine key factors that influence their participation in the decision
making process.
Keywords Accountants, Decision making process, Lebanese accounting system, Quantifiable information
1. Introduction
Accountants have a very important role in decision
making, especially when related to investments. Reason
being, accountants are involved in the explanation of
financial statements, preparation of budgets, identification of
measurable outcomes, and any other quantifiable
information and statements (Rawlinson, D. and B. Tanner,
1989). By providing the necessary quantitative information
about the business, including financial statements and other
forms of quantitative evidences, accountants show an
important role in taking relevant decisions (Gray, 1990,
Owen and Bebbington, 1993).
Although many agree about the important role of
accountants in decision making, certain studies show a
certain lack of involvement by accountants. Even though
quantifiable information is important for decision making,
accountants are not engaged in it because of the absence of
the appropriate techniques. “They are not perceived as
having a positive contribution to decision-making, unless the
contribution is to legitimize decisions arrived at through a
political process” (Bowerman and Hutchinson, 1998).
* Corresponding author:
khalilghazzawi@gmail.com (Khalil Ghazzawi)
Published online at http://journal.sapub.org/ijfa
Copyright © 2014 Scientific & Academic Publishing. All Rights Reserved
2. Research Objective
This paper presents a unique Lebanese prospective “the
Role of Accountants in Decision Making”. This study gives
an opportunistic advantage, as well as insights about the
implementation of accounting decision making and character
of accountants. It’s the first time such a research was
conducted on diverse types of businesses in Lebanon and the
Arab world. It’s known internationally that accountants, are
responsible for financial information in most companies,
have a certain role in the decision making process. That role
differs from company to another, depending on the skills and
qualities a person has and earned over the years.
3. Literature Review
Kaplan (1984) claims that “the development of
management accounting was to isolated from the other
disciplines and was thus losing its importance in the
organizational structure, yet today this description no longer
seems appropriate” (Chenhall, 2008; Rowe et al. 2008). In
fact, according to Cravens and Guilding (2001) the last two
decades have shown a renaissance in managerial accounting.
A large number of critics and practitioners state that modern
accountants are playing a major and important role in the
decision-making process (Fern, Tipgos 1988; Oliver 1991;