Effect of Accounting Information System on Firms Performance. Using the Banking Sector as a Case Study
Chapter One
OBJECTIVE OF THE STUDY
- Examine the relationship between accounting information system and profitability in the banking sector in Nigeria.
- Determine the relationship between accounting information system and Earning per share.
- To examine the impact of accounting information system application on improving employee’s satisfaction in banks according to banks
- To examine the impact of accounting information system application on improving what customer saying about banks services according to banks managers’ perspective.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Many researchers such as (Abdallah, 2013: Adrian-Cosmin, 2015) test the impact of the accounting information systems on the quality of financial statements. They found there is a strong effect of using the accounting information systems on the quality of financial statements. Zakaria et al. (2017) assess the impact of accounting information system (AIS) on the users’ tasks efficiency. The findings ascertain a significant impact of (AIS) on their tasks efficiency related to budgeting, financial reporting, auditing and financial controlling in the companies. While Shuhidan et al. (2015) detect a significant impact of (AIS) on the organizational performance; they also discovered a strong relationship between AIS success and organizational performance. whereas Onaolapo and Odetayo (2012) found that Accounting Information System (AIS) enhance organizational effectiveness especially in global technology advancement, agree with Patel (2015), who detect the importance of accounting information systems, that helps in facilitating decision making and amend organization’s environment, structure and requirements of task, furthermore, emphasizes accounting information plays an necessary role in decision making process related to the financial and economic issues such as cost accounting system, management accounting system, price and profitability which provide the useful information to the manager to make the financial and economic decisions, also they a certain that (AIS) played a significant role in survival of organization. In addition Rapina (2014) discovered a strong relation between the organizational factors (management commitment, organizational culture and organizational structure) on the quality of accounting information system and how (AIS) effect on the quality of accounting information. Furthermore he detects a significant influence of AIS application on the quality of financial reports. While Srivastava and Lognathan (2016) detected any firms try to increase its profitability so, the Accounting information system will be important elements to reaching this goal. Also they define the role of good accounting information system in increasing the company profitability target. From other hand, they found a significant role of AIS on in decision making. But Nwinee et al. (2016), examined how applying AIS enhances the management efficiency and decreased the cost of control to achieving firms goals. Although Tan (2016), test the impact of AIS on internal auditors in Turkey, he revealed the importance role of accounting information systems in companies through enable all levels of management to access comprehensive information that goes into the planning and controlling of activities within business organizations. In addition, AIS provide high quality of information to internal and external users and typically cover six main aspects: people, procedures, data, software, information technology infrastructure, and internal controls. Alnajjar (2016), investigate the impact of accounting information systems on the management performance and organizational performance.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought the impact of accounting information system on the performance of banking sector in Nigeria
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information the impact of accounting information system on the performance of banking sector in Nigeria. 200 staff of first bank, Rivers state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of accounting information system on the performance of banking sector in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the impact of accounting information system on the performance of banking sector in Nigeria
Summary
This study was on the impact of accounting information system on the performance of banking sector in Nigeria. Four objectives were raised which included: Examine the relationship between accounting information system and profitability in the banking sector in Nigeria, determine the relationship between accounting information system and Earning per share, to examine the impact of accounting information system application on improving employee’s satisfaction in banks according to banks, to examine the impact of accounting information system application on improving what customer saying about banks services according to banks managers’ perspective. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of first bank Rivers state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made human resource managers, accountants, customer care officers and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The major conclusion of this study is that quality accounting information in terms of relevance to users contributes significantly to the performance of bank both financially and in terms of service delivery. This we conclude is as a result of the fact that the use of such information for decision making is bound to yield the desired results.
Recommendation
On the basis of the above conclusions, we make the following recommendations:
- More effort should be directed towards the production of good quality accountingvinformation in all the commercial banks in Nigeria in order to improve financial performance. Such information should be free from systematic or deliberate bias, material or significant error, complete and not fraudulent with high levels of predictive and confirmatory value. Accounting practices that tend to over or understate, or even delay the reporting process should also be avoided.
- Commercial banks in Nigeria are advised to employ highly skilled competent professional accountants to generate the financial information.
- Training workshops and seminars aimed at sensitizing commercial bank‟s accounting and record keeping staff and other key decision makers should be organized. This would enhance awareness of stakeholders of the need for good, quality, reliable and timely information to enhance proper financial management practices.
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