An Evaluation Model for Financial Reporting Supply Chain Using DEMATEL-ANP
دوشنبه, ۱۸ بهمن ۱۳۹۵، ۱۲:۴۳ ب.ظ
An Evaluation Model for Financial Reporting Supply Chain Using
DEMATEL-ANP
Abstract
The quality of corporate financial reporting is not only related to the internal accounting process of the company, but also with a variety of external factors. Therefore, it is necessary for scholars to alter the methods to research problems from the internal to the external, and to propose the concept of “financial reporting supply chain” which will gradually become an important subject in the accounting research and accounting practice. The evaluation results show that: the auditing process plays the biggest role in the optimization process of financial reporting supply chain, which is the base for the effectiveness of the system of financial reporting supply chain.
Keywords : Financial Reporting; Supply Chain; Optimization Model; DEMATEL-ANP
. Introduction
At present, researches related with financial reporting
supply chain have attracted wide attention from scholars [1,
2]. But the researches of the existing articles on financial
reporting supply chain is still in the primary stage that because
they mainly focus on the definition, function and aim and
formation of implementation [3, 4]. Thus, it lacks of
researches on the optimization of financial reporting supply
chain.
While as early as in 2003, hosted by Norman Lyle,
International Accountant Federation (IFAC) had designed a
set of global questionnaire strengthening the process of
financial reporting and in August 2005 [5]. It launched a
global study on "how to improve the quality of financial
reporting supply chain". Therefore, optimizing financial
reporting supply chain has become an important issue in
financial reporting supply chain research [6]. Based on the
establishment of the index system of financial reporting
supply chain optimization, this research identifies the key factors which influence the optimization of financial reporting
supply chain by adopting the method of Decision Making
Trial and Evaluation Laboratory and Analytic Network
Process (DEMATEL-ANP). It therefore provides scientific
basis for making the financial reporting supply chain
optimization strategy, strengthening the management and
control over the financial reporting process, and improving the
quality of financial reporting.
DEMATEL-ANP is a model integrates the advantages of
analytic network and trial & evaluation to solve the issues of
complexity and dependency among different criteria [7]. It has
been widely used in finance and banking strategies making,
R&D projects, E-learning evaluations, management systems,
IT systems and control systems, production scheduling, supply
chain management, and so on [8].
Such serious economic cases as Enron Event (Scandal)
which are related to accounting issues show that the quality a
company’s financial report (the accounting information
quality) is not only related to the process of the company’s
internal accounting, but also to many external factors [9]. For instance, accounting standards, external audit, etc. all exert a
direct or indirect influence on the quality of financial reports.
In line with this situation, many scholars change their research
perspective from the inside of the corporation to the outside
impacts to evaluate the quality of financial reporting from a
wider scope [9, 10]. And they recommend corporations to take
practical measures to implement integrated management over
financial accounting reports whose information is false or of
low quality. Against this backdrop, financial reporting supply
chain emerges as the time requires and gradually become an
important topic of accounting research and practice [11].
Evaluation Model based on DEMATEL-ANP
In the process to establish the model of financial reporting
supply chain optimization, the logic relations among each
index should be given full consideration [12]. Using
DEMATEL method to determine the relationship and
intensity among the first class indexes, ANP Method is used
to calculate the relative weight of second class indexes,
thereby to increase the objectiveness and preciseness of the
results.
