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
61 Pages
Project
Reference Code: C043
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
In recent years the advancement in information system
modules all over the world has made business organisations to exert resources
in this area if they are to compete favourably among their local and foreign
counterparts. Gone were the days when business organisations were simply
required to make profit, survive and provide a fair return to investors’ on
their interest. The modern business organisations find itself in the atmosphere
of global uncertainties, cut throat competition locally and internationally and
unprecedented change in the economy.
Hence, a great demand
is often placed on the managers of these organisations to make pragmatic and
informed decisions if the organisation is to move forward as the success or
otherwise of any organisation is often a function of the sum of the decisions
taken in the past. However, 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.
It is noteworthy to say
here that Accounting Information System derives its source from accounting
data. Accounting Information Systems produce results which enhances decision
making. Hence, it can safely be concluded that Accounting Information System is
not an end in itself but a means to an end i.e. decision making to improve
corporate performance. Accounting Information System produces detailed and
comprehensible accounting information which are invaluable basis for decision
making.
1.2 STATEMENT OF RESEARCH PROBLEM
Currently, the world and
human life has been transformed from information age to a knowledge age
(Curtis, 1995), and knowledge has been recognised as the most valuable asset.
In fact, knowledge is not impersonal like money and does not reside in a book,
a data bank or a software program (Choe, 1996). Choe believed that knowledge is
always embodied in a person, taught and learned by a person, used or misused by
a person. Accounting information is an unbiased tool for an effective
administration.
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.
Poor accounting information jeopardizes administrative
effectiveness, which makes managers malnourished administratively especially in
Nigerian construction industry. The consequence of this has been the current
distressed syndrome that Nigerian construction industries are facing. Huber
(1999) stressed that companies must learn to manage their intellectual assets
(i.e. knowledge) in order to survive and compete in the ‘knowledge society’.
Indeed, knowledge management is concerned with the exploitation and development
of the knowledge assets (Chang, 2001).
It is on these premises that the study wishes to examine the
effect of quality of accounting information on the organization performance
with special reference to selected manufacturing companies in Port Harcourt.
1.3
PURPOSE OF THE STUDY
1.4
STATEMENT OF RESEARCH QUESTION
1.5
RESEARCH HYPOTHESES
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE AND LIMITATION OF STUDY
1.8 ORGANIZATION OF STUDY
CHAPTER TWO
REVIEW OF RELEVANT LITERATURE
2.1 THEORETICAL
FRAMEWORK
2.1.1 Contingency Theory
Contingency theory suggests that an accounting information system
should be designed in a flexible manner so as to consider the environment and
organizational structure confronting an organization. Accounting information
systems also need to be adapting to the specific decisions being considered. In
other words, accounting information systems need to be designed within an
adaptive framework.
The first paper to specifically focus on the contingency
view of accounting information systems in the accounting literature was "A
Contingency Framework for the Design of Accounting Information
Systems,"(Gordon & Miller, 1976). This paper laid out the basic
framework for considering accounting information systems from a contingency
perspective.
Gordon & Narayanan (1984) concluded that environmental
uncertainty is a fundamental driver for designing management accounting systems
among successful organizations. A key finding in this study was that, as
decision makers perceive greater environmental uncertainty, they tend to seek
more external, nonfinancial and ex ante information in addition to internal,
financial and ex post information. This latter finding has been confirmed by
several studies that followed the Gordon and Narayanan paper.
Although extensively studied in the last two decades,
contingency theory has been given relatively little consideration in terms of
the factors that influence the accounting information systems. Few
organizations appear to have systematic processes in place for managing the
evolution of their measurement systems and few researchers appear to have
explored two of the main questions: What are the requirements of accounting information
in automobile companies? And, how efficient is the accounting systems in
automobile companies? The paper addresses these questions by providing
empirical evidence of management accounting information contingencies based on
a sample of selected automobile companies in Kenya.
2.1.2 Agency Theory
2.1.3 Behavioural Theory
2.2 CONCEPTUAL
FRAMEWORK
2.4 REVIEW OF
RELEVANT EMPIRICAL LITERATURE
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
This chapter show how the study was carried out, the procedure and
methods employed in the conduct of this discussed under the following headings:
·
Research design
·
Population for study
·
Sample and sampling technique
·
Natural/scope of data (primary
and secondary)
·
Method of data collections
·
Method of data analysis
·
Validity/reliability of
instrument
3.1 RESEARCH DESIGN
Nachmias
and Wachmias (1976) defined research design as a “model of proof that allow the
researcher to draw inference concerning casual relations among the variable
under investigation”. Basically, they are two (2) types of research design, the
experimental and quasi-experimental research design.
3.2 POPULATION FOR THE STUDY
3.3 SAMPLE AND SAMPLING TECHNIQUE
3.4. NATURE/SCOPE OF DATA
3.4.1 Primary Source
3.4.2 Secondary Source
3.4.3 Questionnaire design
3.5 METHOD OF DATA COLLECTION
3.6 METHODS OF DATA ANALYSIS
The data were presented in tables and values expressed in percentage.
Percentage is the data analytical tool. The technique is used because the
research design demands the counting of the number of responses for and against
the research questions formulated for the study. Pearson’s Product Moment
Correlation of Co-efficient is the statistical technique used for hypothesis
testing. The formula for Pearson product moment co-efficient of correlation is
given as:
r =
Where
N = numbers
of data variables
y = the
dependent variable(s)
X = the
independent variable(s)
Given that:
Y = firm
performance
X = accounting
information system
All data for the purpose of this study
will be analysed using Statistical Package for Social Sciences (SPSS) version
21
3.7 VALIDITY RELIABILITY OF
INSTRUMENT
3.7.1 RELIABILITY OF INSTRUMENT
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. INTRODUCTION
This
segment of the research focuses on the presentation, analyses and
interpretation of the various responses to the questionnaires distributed.
Pearson Correlation Coefficient will be used in the test of hypothesis as
stated in chapter three while tables and simple percentages will be used to
explore the characteristics of the responses to the questionnaires issued.
4.2. DATA ANALYSIS AND INTERPRETATION
RESEARCH QUESTIONS
4.3. TESTING OF HYPOTHESIS.
Hypothesis One
Hypothesis Two
CHAPTER FIVE
SUMMARY CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
This research project
investigated the effect accounting information system on the profitability and
productivity of manufacturing companies in Port Harcourt, Nigeria. In the
course of the research, follwong findings were made:
·
The study showed that there
is a positive and significant relationship between the implementation of accounting
information systems and the profitability of manufacturing companies in Port
Harcourt. This result implies that the implementation and use of accounting
information systems induces increased profitability in manufacturing companies.
It also implies that accounting information system can be relied on to explain
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.
The implication of this finding is that as manufacturing companies implement
and use accounting information systems, their productivity is bound to
increase.
5.2 CONCLUSIONS
5.3 RECOMMENDATIONS
BIBLIOGRAPHY
Alsharayri, M. (2013). Evaluating the performance of
Accounting Information Systems in Jordanian Private Hospitals. Journal of
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American Institute of certified public accountants, (2006).
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Barth, M. E., W.H. Beaver and W. R. Landsman (2001). The
Relevance of Value Relevance Literature for Financial Accounting Standard
Setter: Another View. Journal of Accounting and Economics, 31(1-3), 77 – 104
Beaver, W. H., and J. Demski, (1974). The nature of
financial accounting objectives: a summary and synthesis. Journal of Accounting
Research, 170–182.
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Quinn, R. and Rohrbaugh, J. (2006). A Spatial Model of
Effectiveness Criteria: Towards a competing Values Approach to Organisational
Analysis. Management Science, 29, 77-91.
Romney et al., (2003). Accounting Information Systems (9th
ed.). New Jersey: Pearson Prentice Hall.
Wilkinson, J. W. (1993). Accounting Information Systems:
Essential Concepts and Applications. (2nd ed.). New York: John Wiley
& Sons Inc.
Zimmerman, J. (1997). Accounting for Decision making and
control. Boston: Irwin/McGraw Hill.
Project
Reference Code: C043
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