Outsourcing of financial and management accounting: Do familiness as a social capital and company size as an organizational capital affect the decision to make such a transfer?

Abstract

The paper examines the impact of family and size on accounting outsourcing decisions and interactions between those variables. Based on a survey from German and Polish companies, we employ Bayesian logistic regressions for testing hypotheses and interactions of independent variables. The results support the hypotheses and indicate the combined influence of family firms and, therefore, family-social perspective and size on accounting outsourcing decisions. Larger firms are less likely to outsource financial and managerial accounting regardless of family influence, but in smaller firms, more significant family influence results in a lower likelihood of accounting outsourcing. This paper addresses a topic missing from the literature on the combined effects of size and family on accounting outsourcing (including financial and management accounting outsourcing at the same time).