Accounting Policy and Performance of Limited Companies in Cameroon

Abstract

The issue of company performance relates to the sustainability of companies based on accounting policy. This article examines the role of accounting policy on performance by going beyond the simple perspective of financial performance. Thus, a review of the literature on the factors influencing the performance of the company, in particular its sustainability, makes it possible to highlight; agency theory and governance to explain the multidimensionality of accounting policy which can facilitate the understanding of its links with business performance. By comparing the samples of active public limited companies (PLC) and those that have disappeared, we will question the differences between the two groups in terms of characteristics specific to accounting policies and business performance. The empirical assessment concerned two categories of Limited companies with a sample of 44 between 2018 and 2021. The results highlight the accounting policy is linked to the size of Limited companies as factors favoring company performance.