This study examines the extent and effectiveness of management accounting practices in
Citizens Bank International Limited and its relationship with financial performance at the
branch level. Primary data were collected from 56 managers and officers using a structured
questionnaire covering budgeting, costing, performance measurement, decision support, and
management reporting, complemented by three semi-structured interviews and three years of
published financial statements.
Reliability analysis shows acceptable internal consistency for
all constructs. Descriptive statistics indicate that all management accounting practice indices
lie above the neutral midpoint, with performance measurement and reporting relatively
stronger and advanced costing weaker. Correlation analysis reveals strong positive
associations among management accounting dimensions and between each dimension and
perceived performance.
Simple regression results show that the overall management
accounting practices index explains about forty-five percent of the variance in perceived
performance, while multiple regression indicates that the five dimensions jointly explain
about 59 percent, with performance measurement emerging as the only significant individual
predictor.
Financial statement analysis shows that assets, deposits, and loans have grown, but
profitability indicators such as return on assets, return on equity and earnings per share have
declined, and non-performing loans have increased, highlighting a challenging operating
environment.
Interview evidence confirms the presence of structured budgeting, regular
variance analysis, and branch profitability reporting, but also identifies gaps in participative
budgeting, granular costing, decision support tools, system integration, and staff capabilities.
Overall, the findings suggest that stronger management accounting systems are associated
with better perceived branch performance, and that further strengthening of performance
Measurement, costing, decision support, and capacity building could support more sustainable
financial outcomes. The study contributes Nepal-specific evidence to the wider literature on
banking management accounting practices.
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