The development of an integrated financial decision-making model using making model using lean accounting
The importance of accounting information in the decision-making of stakeholders has been studied extensively since the early 1900s. Significant change in the business and accounting landscape over the past 30 years happened because of globalisation and reporting of various accounting standards. This led to the expansion of research efforts on financial accounting disclosure, integrated reporting, financial decision-making models, and lean accounting. However, despite these vigorous research efforts this study identified a gap in the literature that little to none of these research are being integrated or supply proposal to practical applications on possible integration. It was noted from the literature review that the development and applications of accounting standards are being influenced by various internal and external factors. These influences are also evident in the use of financial decision-making models available to stakeholders. Further the study revealed that traditional accounting has many shortcomings and that lean accounting has the ability to improve decision-making. Based on these findings the study attempt to provide a framework for the development of an integrated financial decision-making model and developing an integrated financial decision-making model using lean accounting principles. The newly developed integrated financial decision-making model using lean accounting principles make use of a hybrid of grounded theory and multiple case study. The thesis employed the Struassian grounded theory, whereby historical evidence, experience and existing theories were used to generate novel theory. While the use of a multiple case study enhance this developed novel theory. The fusion of grounded theory and multiple case study methods proved to be an ideal methodology as there were no previous studies identified which integrate financial decision-making models and lean accounting principles. The data that were necessary for the thesis were obtained using document analysis. The document analysis relied on the annual reports of three selected energy companies on three different stock exchanges. Using the document analysis enhances the authenticity, reliability and credibility of the data. The newly developed integrated financial decision-making model using lean accounting principles require the adoption of the following concepts: • Value stream performance measurements • Value stream box reports • Value stream performance reports The findings indicated that financial decision-making models are being influenced by the adoption of lean accounting principles. Finally, by evaluating the newly developed model, it was confirmed that the integrated financial decision-making model using lean accounting principles influences the decision-making abilities of stakeholders. This thesis provides accounting professions and academics around the world with a newly developed and empirical tested financial decision-making model using lean accounting that can be applied by all stakeholders using any accounting standard to influence decision-making.