Analyzing the Relationship Between the Accounting System and Quality Management and Its Impact on the Market Value of Companies
Keywords:
integration, financial accounting, quality, market value, financial and operational performance, customer and investor satisfaction.Abstract
The integration between financial accounting and quality in companies is one of the most important tools and strategies to enhance the financial performance of companies, increase their market value, and ensure continuity and competitiveness in the markets, as continuity and competitiveness in the markets are the most important main goals that companies seek. This study analyses the relationship between financial accounting and quality in enhancing companies' financial performance and market value by analysing previous studies and some successful companies. Which improved operational performance, reduced costs, and increased customer and investor satisfaction? Through integration between financial accounting and quality. The results indicated that companies that adopt strong quality systems achieve better financial performance than others. The relationship between improving financial performance through integration between financial accounting departments and quality departments in institutions is a positive, direct relationship. The greater the integration, the greater the improvement in financial performance. The results indicate that improving quality leads to increased customer and investor satisfaction, even indirectly expanding the company’s value in the market.
References
1. Zhou, G., Liu, L., & Luo, S. (2022). Sustainable development, ESG performance and company market value: Mediating effect of financial performance. Business Strategy and the Environment, 31(7), 3371-3387.
2. Wijayanto, A., Dzulkirom, M., & Nuzula, N. F. (2019). The effect of competitive advantage on financial performance and firm value: evidence from Indonesian manufacturing companies. Russian Journal of Agricultural and Socio-Economic Sciences, 85(1), 35-44.
3. Handayani, S. R., & Rahayu, S. M. (2019). Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value. Asian Journal of Accounting Research, 4(1), 18-34.
4. Abu Afifa, M. M., & Saleh, I. (2022). Management accounting systems effectiveness, perceived environmental uncertainty and companies’ performance: the case of Jordanian companies. International Journal of Organizational Analysis, 30(2), 259-288.
5. Sedevich-Fons, L. (2018). Linking strategic management accounting and quality management systems. Business Process Management Journal, 24(6), 1302-1320.
6. Vlčková, M. (2018). Dependency of accounting data quality on selected financial indicators.
7. Crispim, G., Alberton, L., & Ferreira, C. D. (2019). Opportunity of robust research in Accounting: a literary analysis on performance indicators in the management of municipal governments. Contabilidad y Negocios, 14(28), 126-142.
8. Salmanzadeh, H., Kordestani, G., & Kazemi, H. (2022). The role of management accounting in improving management control system in public sector. Iranian Journal of Finance, 6(1), 54-82.
9. Dahal, R. K. (2019). Changing role of management accounting in 21st Century. Review of Public Administration and Management, 7(3), 1-8.
10. Lan, N. T. N., Yen, L. L., Ha, N. T. T., Van, P. T. N., & Huy, D. T. N. (2020). ENHANCING ROLES OF MANAGEMENT ACCOUNTING AND ISSUES OF APPLYING IFRS FOR SUSTAINABLE BUSINESS GROWTH: A CASE STUDY. Journal of Security & Sustainability Issues, 10(2).
11. Rashid, C. A., & Sabir Jaf, R. A. (2023). The role of accounting measurement and disclosure of social capital in improving quality of accounting information. Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies), 16(4), 927-945.
12. Jaf, R. A. S., & Rashid, C. A. (2023). The role of accounting measurement and disclosure of social capital in improving financial performance. Academic Journal of Nawroz University, 12(4), 469-477.
13. Phomlaphatrachakom, K. (2020). Accounting control system, accounting information quality, value creation, and firm success: An empirical investigation of auto parts businesses in thailand. International Journal of Business, 25(2), 159-177.
14. Dahlgaard-Park, S. M., Reyes, L., & Chen, C. K. (2018). The evolution and convergence of total quality management and management theories. Total Quality Management & Business Excellence, 29(9-10), 1108-1128.
15. Mahmoud, F. A., Hasan, K. J., & Hanoon, M. F. (2024). Integration Between JIT and ABC 11 Systems and Their Role in Cost Reduction. International Journal of Instructional Cases, 8(1), 1-15.
16. Cholakkal, M. J., & Chettiyam Thodi, N. A. (2024). ENHANCING AUTOMOTIVE MANUFACTURING QUALITY AND REDUCING VARIABILITY: THROUGH SIX SIGMA PRINCIPLES.
17. Ghassan, G., Maelah, R., Amir, A. M., & Farhan, M. F. (2019). Total quality management and the role of management accountants on organisational performance: the service sector in Malaysia. Asian Journal of Business and Accounting, 12(2), 147-178.
18. Sadkowski, W., & Jedynak, P. (2022). Quality management and accounting in service industries: a new model of quality cost calculation (p. 208). Taylor & Francis.
19. Hutahayan, B. (2020). The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance. Benchmarking: An International Journal, 27(4), 1289-1318.
20. Shafiq, M., Lasrado, F., & Hafeez, K. (2019). The effect of TQM on organisational performance: empirical evidence from the textile sector of a developing country using SEM. Total Quality Management & Business Excellence, 30(1-2), 31-52.
21. Alzoubi, H. M., In'airat, M., & Ahmed, G. (2022). Investigating the impact of total quality management practices and Six Sigma processes to enhance the quality and reduce the cost of quality: the case of Dubai. International journal of business excellence, 27(1).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Abadelrhem A.B. Alfageeh

This work is licensed under a Creative Commons Attribution 4.0 International License.