A Contingency Model of performance evaluation: emphasizing on the role of modern management accounting tools

With the introduction of contingency theory into the management accounting literature, this theory was used to explain the factors that are expected to affect the adoption and use of modern accounting management tools. The contingency theory Literature of management accounting is based upon the idea that there is no universally management accounting system that equally applies to all enterprises in all circumstances. The purpose of this study is to present a contingency model of performance evaluation of firms emphasizing the role of modern management accounting tools. The research data have been gathered from the financial statements and other reports of 85 firms listed at Tehran Stock Exchange during 1394 to 1396, as well as a questionnaire distributed among the financial managers of these firms at the end of 1396. The structural equation modeling approach and SmartPLS software have been used for modelling. The results showed that the use of modern management accounting tools has a positively significant effect on the firm's performance. Also, the study findings indicate that the relationship between the use of modern management accounting tools and firm performance are significantly and positively moderated by three contingency factors namely; market competition, environmental uncertainty and company size.