Application of Managerial Accounting Information to Land Reform Management for Sustainable Agriculture

This research aims to: (1) investigate causal factors and effects of financial ratios on land reform management for sustainable agriculture and (2) examine the financial situation and operational efficiency of Agricultural Land Reform Office (ALRO) during 2008-2016 based on annual reports from 2008 to 2016. The sample of this study includes 463 staff members from administration, accounting, and financial teams of ALRO in Thailand. Purposive sampling together with a questionnaire was used for data collection. The data was analyzed by descriptive statistics comprised of basic statistical data consisting of mean, standard deviation, frequency, and percentage. Also, path analysis for hypotheses testing and analysis of ALRO financial reports were performed. It was found that the application of managerial accounting data has direct influence on financial ratios. In addition, financial ratios in terms of liquidity, assets management, debt management, and profitability have direct influence on land reform management for sustainable agriculture. Moreover, the study found that the overall financial situation of Agricultural Land Reform Office (ALRO) is fine and the organization is able to pay off liabilities sufficiently. ALRO has good assets management for both fixed assets and total assets that generate income, and capabilities to invest in land to ensure operational efficiency. When comparing the financial situation during 2008-2016, the whole picture demonstrated that its entire finance was manageable and there were no faults. For operational efficiency in those years, 2010 and 2014 were in the red due to expenses from investment for profit in the following year. This study, thus, helps create knowledge as an important organizational resource that enables competitive advantages of the organization, leads to great performance based on its ultimate goals, and optimizes expenses for the benefits of population according to the government’s policy