Impact of Management Accounting and the Circular Economy Model on Business Performance: A Study of Enterprises in Hanoi

The information management accounting provides to improve productivity and resource allocation leads to direct financial benefits for businesses as well as value for society. Effective management accounting will help improve business performance and bring competitive advantages to businesses. Meanwhile, a circular economy is an economic model in which design, production, consumption, and service activities aim to reduce the exploitation of raw materials, increase the product life cycle, limit waste generation, and minimize adverse impacts on the environment. The author collects data on 115 enterprises in Hanoi and uses PLS-SEM, a research model that is evaluated through two steps: evaluation of measurement models and structural models, to explore the impact of management accounting systems and circular economy model implementation on the performance of enterprises in Hanoi. The results show that both the management accounting system and the circular economy have a positive impact on the performance of the business.