The study examined factors influencing adoption of activity-based costing (ABC) systems in Greek hotels. A survey of 85 hotels found a 23.5% adoption rate of ABC. Logistic regression found ABC adoption was positively associated with higher percentages of indirect costs and greater use of strategic management accounting techniques. However, other factors like size, competition, services variety, and importance of cost data did not significantly affect ABC adoption. Limitations included the cross-sectional design and small sample size. The study provided initial empirical evidence on ABC adoption factors within the hotel industry.

1. The impact of firm characteristics on ABC systems: an empirical study of Greek hotels Dr Odysseas Pavlatos Athens University of Economics an Business Department of Accounting and Finance

12. Research Methodology Variables measurement Importance of cost data (IMPO) 0.87 Cronbach alpha 64.16 5.133 0.790 Capital expenditures are based on “strategic reasons” instead of cost issues 0.683 The firm performs many special cost studies 0.813 Cost data are an important factor in pricing decisions 0.768 Cost data are important because of your cost reduction efforts 0.872 Product cost must be accurate to compete in your market Percent of variance Ε igenvalue Factor loadings Items

14. Research Methodology Variables measurement Extent of the use of strategic management accounting techniques (SMA) 0.698 Strategic pricing 0.627 Competitive position motoring 0.741 Competitor cost assessment 0.85 53.4 3.738 0.632 Strategic costing (strategic cost management) 0.718 Life cycle costing 0.854 Benchmarking Cronbach alpha Percent of variance Ε igenvalue Factor loadings Items

16. Data analysis Descriptive statistics for independent variables 26 8 5.03 16.10 85 Extent of use of strategic management accounting techniques 99.5 3.3 12.25 9.85 85 Sales revenue for the year 2005 (€ mil) 7 3 0.87 5.21 85 Level of competition 63 30 7.66 46.93 85 Cost structure (% of indirect costs) 32 15 4.15 22.95 85 Importance of cost data Actual Maximum Actual Minimum Std. Dev. Mean N Variable

17. Data analysis Spearman correlation matrix for the independent variables Note: * indicates Correlations is significant at the .05level (2 tailed) **indicates Correlations is significant at the .01 level (2 tailed) 1 0.451** 0.249|* 0.185 0.203 0.361** SMA 1 -0.007 0.184 0.107 0.172 IMPO 1 -0.015 -0.190 0.188 COMP 1 0.421** 0.241* SIZE 1 0.029 SERV 1 STRUC SMA IMPO COMP SIZE SERV STRUC Variable

18. Research Findings ABC adoption rates Note: N= 85 100 85 Total 13.9 9 ABC supporters 86.1 56 ABC deniers 74.5 65 ABC non- adopters 23.5 20 ABC adopters % N

20. Research Findings Hypothesis testing (2) 0.588 Nagelkerke R square 0.441 Cox & Snell R square 0.735 Hosmer – Lemeshow goodness of fit 0.000 Chi-square 0.001 0.070 3.673 -6.656 Constant 2.022 0.495 0.639 0.016 0.787 1.893 Extent of the use of innovative management accounting techniques 1.201 0.833 0.958 0.662 0.099 -0.143 Number of services variants 1.151 0.869 1.000 0.720 0.000 0.000 Size (log annual sales in euro millions) 1.129 0.886 0.518 0.209 0.524 -0.658 Level of competition 0.211 0.826 1.185 0.004 0.058 0.170 Cost structure (% indirect costs) 0.718 0.582 0.482 0.444 0.514 0.393 Importance of cost data VIF Tolerence Exp. B P Value St . Er . B 87% Per cent correctly classified Collinearity statistics