Enterprise Governance and Management Accounting from the Viewpoint of Feed-Forward Control

  • Akira Nishimura


In a growing market world economy, in which the scope for financial mismanagement increases, enterprises need to strengthen their strategic risk management. Enterprise governance is not only a publicly regulated issue but also a matter of self-control, since it is closely related to conformance and performance (value creation). Therefore, enterprise governance should be studied from the viewpoint of proactive and preventive (feed-forward) control rather than a reactive and reflective (feedback) viewpoint. The integrated aspects of financial and management accounting should be examined with relation to internal control and enterprise governance, although generally only corporate governance (conformance) has been discussed from the viewpoints of auditing and financial accounting and feedback control. Management accountants in Japan should pay more attention to the establishment of feed-forward management accounting and good enterprise governance.


Internal control Enterprise governance Value creation Risk management 


  1. Abe, T., Yoshikawa, K., & Hasegawa, H. (2000). Risk Management in IT Business Age. Nikkei Information Strategy, December (monthly), 37, Tokyo: Nikkei Business Publication.Google Scholar
  2. Appleyard, T., & Pallet, S. (2004). Successful Foreign Acquisitions (pp. 16–17). Burlington: CIMA publishing.Google Scholar
  3. Banks, E. (2004). Corporate Governance: Financial Responsibility, Controls and Ethics (pp. 26–27). Basingstoke: Palgrave Macmillan.Google Scholar
  4. Collier, P. M., & Berry, A. J. (2002). Risk in the Process of Budgeting. Management Accounting Research, 13, 273–297.CrossRefGoogle Scholar
  5. Connell, B. (2004, April). Perspective on Enterprise Governance, Presented to the CMAC Management Accounting Conference, Kuala Lumpur.Google Scholar
  6. Dietl, H. M. (1998). Capital Markets and Corporate Governance in Japan, Germany, and the United States (pp. 23–44). London: Routledge.Google Scholar
  7. Dressler, S. (2002). Management Accounting Master: Closing the Gap Between Managerial Accounting and External Reporting. Journal of Cost Management, 16(January/February), 18–29.Google Scholar
  8. Imoto, S. (1999, June). What Distinguishes Nakauchi (Chairman of Daiei) from Ito (Honor Chairman of Ito Yokado Co. Ltd.)? Nikkei Venture, 82–86.Google Scholar
  9. Itami, H. (2000). Japanese Corporate Governance. Tokyo: Nihon Kezai Sinbun.Google Scholar
  10. Japan Times. (2004). Scandal-wracked Mitsubishi Motors Struggling to Survive, Japan Times, August 22.Google Scholar
  11. Kaplan, R. S. (1984). The Evolution of Management Accounting. The Accounting Review, 59(3), 390–418.Google Scholar
  12. Kim, K. S. (1995). Chaebol and Corporate Governance in Korea (pp. 47–49). Arbor: UMI Dissertation Services, a Bell & Howell Company.Google Scholar
  13. Marple, R. P. (1936). Capital Surplus and Corporate Net Worth (p. 7). New York: The Ronald Press.Google Scholar
  14. Mochizuki, K. (1995). Preface: Project Objective, In David H. Kaufman (Ed.), Japanese Corporate Governance: A Comparative Study of Systems in Japan and the United States (pp. ix, 15). New York: The Asian Institute.Google Scholar
  15. Nikkei Venture. (2001). Study on Bankruptcy. Tokyo: Nikkei BP.Google Scholar
  16. Nishimura, A. (2003). Management Accounting in Asia: feed forward and Asian perspectives. Hampshire: Palgrave Macmillan.CrossRefGoogle Scholar
  17. Niyama, Y. (2001). Dispute on Corporate Governance. Study Meeting of Business and Law Affairs. Japan: Tokyo.Google Scholar
  18. PAIB. (2004). Enterprise Governance: Getting the Balance Rights. New York/London: IFAC/CIMA.Google Scholar
  19. Prickett, R. (2004, March). Up the Right Tree. Financial Management, 33(1), 12.Google Scholar
  20. Society for Study of Risk Management and Internal Control. (2003). Internal Control in the New Age of Risks. Tokyo: The Japanese Ministry of Economy and Industry.Google Scholar
  21. Solomon, J., & Solomon, A. (2004). Corporate Governance and Accountability (pp. 169, 177, 179 and 181). West Sussex: John Wileys and Sons.Google Scholar
  22. Special Article. (2000, December). Risk Management in the New Day of Information Technology. Nikkei Strategy, 26–46.Google Scholar
  23. Special Report. (2003). The Leadership: Challenge 2003, Strategys+Business, pp. 49–50.Google Scholar
  24. Stuart, I., & Stuart, B. (2004). Ethics in the Post-Enron Age. Cincinnati: Thomson South-Western College Pub.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Akira Nishimura
    • 1
  1. 1.Beppu UniversityBeppu-cityJapan

Personalised recommendations