AGENT-BASED MODEL AND MANAGEMENT ACCOUNTING: CULTURE-CONTINGENT MANAGERIAL BEHAVIOR IN LIGHT OF BUDGETARY CONSTRAINTS

• Published in: Advances in Scientific and Applied Accounting
• Main Authors: Cornacchione, Edgard, Reginato, Luciane
• Format: Journal Article
• Language: English
• Published: 08.06.2022
• ISSN: 1983-8611; 1983-8611
• DOI: 10.14392/asaa.2021140306

Objective: The paper aims at creating a model to simulate managerial behavior within a budgetary process affording analysis of evolving overall performance and specific behavioral attributes, at both firm- and manager-level.Method:  This study focuses on computer science, decision systems and management, by exploring agent-based modeling (ABM) in management accounting, with Python and Mesa. The model adopts a Consumer Service Provider firm and its quarterly sales budgeting process for a network of 400 branches over a 5-year term, contingent to firm culture (authoritarian or participative).Results and discussions: Data analytics yielded results based on intense model simulation, with more than 19 million data points. Findings show culture-contingent firm performance and managerial behavior evolution linked to the budgetary process. Authoritarian firms generated fair more sales with similar managerial human capital  and market, under increasing strong demand; authoritarian firms paid more bonuses as part pf their reward system. In general, an authoritarian culture may benefit in a strong demand scenario thad participative firms, potentially due to budgetary slack form negotiation. On the other hand, authoritarian forms showed lower levels of happiness and engagement among their managers. Contributions: Contributions are threefold, pointing to (a) management accounting practice and research, (b) science and research strategy, and (c) accounting education.