Accounting Information System and Firm Performance: A Study of Selected Manufacturing Companies Nigeria

Reference code: C078

ABSTRACT

This research project investigated the impact of accounting information system on the performance of manufacturing companies in Port Harcourt, Nigeria. In order to achieve the objectives of the stdy, two hypotheses were formulated and data collected through the issue 91 structured questionnaires to accounting staff of 22 manufacturing companies. data collected was analysed using Pearson Coefficient of Correlation. our findings showed that: The study showed that there is a positive and significant relationship between the implementation of accounting information systems and the profitability of manufacturing companies. The study also showed that there is a positive and significant relationship between the implementation of accounting information systems and the productivity of manufacturing companies. Given our findings, we conclude that: The implementation of adequate accounting information induces profitability in manufacturing companies. We also conclude that the implementation of adequate accounting information systems is a productivity driver in manufacturing companies. Given our findings and conclusions, we make the following recommendations: Manufacturing companies should continue to implement and upgrade their accounting information systems in order to continue to drive profitability of manufacturing companies should provide adequate training in the proper implementation and use of accounting information systems

BACKGROUND TO THE STUDY

............  the quality of decisions taken by managers rests upon the substance and accuracy of information provided by systems available to them. 

An accounting system is one of the most effective decision making tools of management as it provides an orderly method of gathering and organising information about the various business transactions so that it may be used as an aid to management in operating the business (Copeland and Dascher, 1978). Accounting information also may help managers understand their tasks more clearly and reduce uncertainty before making their decisions (Chong, 1996). Thus, Accounting Information system is vital to all organisations and perhaps, every organisation either profit or non profit oriented need to maintain an Accounting Information System as no organisation is exempted from decision making in their operations.

As we all know, accounting speaks the language of business as it records all transactions of an individual firm or other bodies that can be expressed in monetary terms. Predicated on the going concept, accounting is the scheme and art of collecting, classifying, summarizing and communicating data of financial nature required to make economic decisions. Accounting information is an ingredient in most, if not all, financial managerial decisions. In developed economies, these decisions are worth billions of dollars each year. In some cases, the decisions are lacking in quality. Consequently, if researches can improve decision making through improved information, society will benefit. 

Accounting system, in recent times, has tended to be a system of information that does not stop at limits of data and financial information, but also it includes data and descriptive and quantitative information which is useful in decision making for users distinct with plurality and diversity. Such users include current and potential investors, lenders, suppliers, creditors, customers, governments and the public in addition to the administration, which is its responsibility to prepare the accounting programs and displaying it, that information must be capable of achieving the goal that it has been prepared for. Hence the role of Accounting Information System for effective decision making cannot be over emphasized ..........

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TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION
1.2 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF RESEARCH PROBLEM 4
1.4 PURPOSE OF THE STUDY 5
1.4 STATEMENT OF RESEARCH QUESTION 6
1.5 RESEARCH HYPOTHESES 6
1.6 SIGNIFICANCE OF THE STUDY 6
1.7 SCOPE AND LIMITATION OF STUDY 7
1.8 ORGANIZATION OF STUDY 8

CHAPTER TWO: REVIEW OF RELEVANT LITERATURE
2.1 THEORETICAL FRAMEWORK 10
2.1.1 Contingency Theory 10
2.1.2 Agency Theory 11
2.1.3 Behavioural Theory 13
2.2 CONCEPTUAL FRAMEWORK 14
2.3 REVIEW OF RELEVANT EMPIRICAL LITERATURE 30

CHAPTER THREE:  RESEARCH METHODOLOGY
3.0 INTRODUCTION 35
3.1 RESEARCH DESIGN 35
3.2 POPULATION FOR THE STUDY 36
3.3 SAMPLE AND SAMPLING TECHNIQUE 36
3.4. NATURE/SCOPE OF DATA 37
3.4.1 Primary Source 37
3.4.2 Secondary Source 37
3.4.3 Questionnaire design 36
3.5 METHOD OF DATA COLLECTION 36
3.6 METHODS OF DATA ANALYSIS 38
3.7 VALIDITY AND RELIABILITY OF INSTRUMENT 39

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. INTRODUCTION 41
4.2. DATA ANALYSIS AND INTERPRETATION 42
4.3. TESTING OF HYPOTHESES 48

CHAPTER FIVE
SUMMARY CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS 52
5.2 CONCLUSIONS 53
5.3 RECOMMENDATIONS 53
BIBLIOGRAPHY 54


Reference code: C078
Reference code: C078

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