In the following, hypotheses H1–H4 developed in Section
3 are tested using SEM. The statistics regarding the
global criteria of model fit provided in Table 11 exceed the
minimum requisites indicated in Table 6 by far and without
exception. Thus, we can conclude that the hypothesized
model fits the empirical data very well.
Fig. 2 indicates the coefficient values of the causal paths
connecting the four variables as well as the explained variance
(R2) derived from the empirical data.
As the SEM parameter estimates depicted in Fig. 2
reveal, there is no significant direct effect of the integration
level of accounting systems on controllership output quality.
Hence, hypothesis H1 cannot be corroborated. On the
other hand, as stated in hypothesis H2, consistency of financial
language is positively influenced by the integration level
of accounting systems. This impact accounts for 18% of the
variance of the former variable. Consistency of financial language
has a positive impact on controllership output quality,
as stated in hypothesis H3, explaining 45% of the latter variable.
Furthermore, as stated in hypothesis H4, controllership
impact on management decisions is positively influenced
by controllership output quality. This influence accounts for
30% of the variance of the former variable.
The statistical inference of the empirical data implies
that the technical features underlying controllers’ services
are not directly relevant for management’s judgments
regarding controllership effectiveness. Instead, the findings
indicate that the dominant impact on controllership
effectiveness results from controllers being able to report
a business model that is consistent with the financial
accounting model.