ABSTRACT
This
research project investigated the impact of accounting information system on
the performance of commercial banks in Nigeria. In order to achieve the
objectives of the study, two hypotheses were formulated and data collected
through the issue 91 structured questionnaires to accounting staff of 12
commercial banks. 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 commercial banks in Nigeria. The
study also showed that there is a positive and significant relationship between
the implementation of accounting information systems and the productivity of
commercial banks. Given our findings, we conclude that: The implementation of
adequate accounting information induces profitability in commercial banks. We
also conclude that the implementation of adequate accounting information
systems is a productivity driver in commercial banks. Given our findings and
conclusions, we make the following recommendations: Commercial banks should
continue to implement and upgrade their accounting information systems in order
to continue to drive profitability and continue to provide adequate training in
the proper implementation and use of accounting information systems.
65
Pages
Project
Reference Code: C077
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The ability of a manager to use
available resources efficiently and effectively depends on how well the
organization's accounting information system is planned and implemented. Hence,
the role of accounting information system in the success of any business cannot
be over emphasized. For an organisation to function properly, adequate and
timely accounting information system has to be in place, whose function is to
provide adequate, timely and reliable financial data necessary for the
management of the affairs of the organization. It is important to note that,
poor record keeping and communication has in the past led to the failure of
many businesses organisations.
Accounting
information system combines the study and practice of accounting with the
design, implementation and monitoring of information systems. Such systems use
modern information technology resources in conjunction with traditional
accounting controls and methods to provide users the information necessary to
manage the organization (Etim, 2011).
The effect of a good accounting information
system can be underscored by the effectiveness and efficiency of the system
when it automatically alerts the attention of management to issues that deviate
from the pre-determined standards.
In recent years, the advancement in
information systems all over the world has made business organisations to channel
resources in these areas if they are to compete favourably among their local and
foreign counterparts. Gone are the days when business organisations were simply
required to make profit and provide a fair return to investors. 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 practical 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 on the relevance and accuracy of
information provided by systems available to them.
An accounting system is among the most
effective decision making tools at the disposal of management as it provides an
orderly method of collecting and organising data and information about the
various business financial transactions so that it may be used as a tool for
management in running the business (Copeland and Dascher, 1978).
Accounting information also may help
managers understand their tasks more clearly and reduce the uncertainty that
surrounds business decision making (Chong, 1996). Accounting Information system
is therefore vital to all organisations and perhaps every organisation profit
or non profit oriented needs to maintain an Accounting Information System.
Predicated on the going concern concept,
accounting is the art of collecting, classifying, summarizing and communicating
data of financial nature required to make business decisions. Accounting
information is an ingredient in most, if not all, financial managerial
decisions. In developed countries, these decisions are worth billions of
dollars each year. In some cases, the decisions are lacking in quality.
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. Such users
include current and potential investors, lenders, suppliers, creditors,
customers, governments and the public in addition to the management, which has
the 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 important to state 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 asserted that
Accounting Information System is not an end in itself but a means to an end
i.e. decision making to improve corporate performance.
This
research thesis will conduct an in depth investigation into the effect of
accounting information system on the performance of the banking industry in
Nigeria with special emphasis on the deposit money banks resident in Port
Harcourt, Rivers State.
1.2 STATEMENT OF
RESEARCH PROBLEM
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 where knowledge based activities prevail,
these decisions are worth billions of dollars each year and are indispensible
for proper functioning of businesses. But 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 management effectiveness, which makes
managers in effective administratively especially in Nigerian Banking industry. The consequence of this has been the
recurrent distress syndrome that Nigerian banking industry is facing
intermittently. Huber (1999) stressed that organisations must learn to manage
their intellectual assets (i.e. knowledge) in order to survive and compete in a
‘knowledge based 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 accounting information on the organization performance
with special reference to selected deposit money banks 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
2.0 INTRODUCTION
An
efficient accounting information system is one that provides quality
information that should be appropriate, timely, current, and accessible. A
precondition for these to be achieved is the prompt recording and proper
classification of transactions and events, where necessary information is
generated on timely basis, the information so generated is made available to
the right person and the existence of proper and working controls. In this
chapter, we will review relevant literature on accounting information system
and how it functions to bring about efficiency and effectiveness in the
organisation starting with a review of relevant theoretical literature.
2.1 THEORETICAL
FRAMEWORK
2.1.1 Contingency Theory
Contingency theory suggests that an
accounting information system be designed in a flexible manner in order to
consider the environment and organizational structure confronting an
organization. In addition to the above, Accounting Information Systems also
need to be adapted to the specific decisions being considered. This means that
accounting information systems need to be designed within an adaptive framework
(Gordon & Narayanan 1984).
The seminal paper to specifically focus
on the contingency view of accounting information systems was "A
Contingency Framework for the Design of Accounting Information
Systems,"(Gordon & Miller, 1976). The 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 observation in the
study was that decision makers in face of greater environmental uncertainty,
tend to seek more external, non-financial and ex-ante information in addition
to internal, financial and ex post information.
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 in the banking industry
·
How
efficient is the accounting systems in the banking industry?
2.1.2 Agency Theory
2.1.3 Behavioural Theory
2.2 CONCEPT
OF ACCOUNTING INFORMATION SYSTEM
2.2.1 Usefulness
of Accounting Information System
2.2.2 Value
Relevance of Accounting Information system
2.2.3 Advantages/Implications of Accounting
Information System
2.3 Implementation
of an Accounting Information System
2.3.1 Detailed
Requirements Analysis
2.3.2. Systems
Design and Documentation
2.3.3 Testing,
Training and Data Conversion
2.3.4 Launch
and Support of the Accounting System
2.4 ACHIEVING
EFFICIENT ACCOUNTING INFORMATION SYSTEM
2.5 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
(1976) defined research design as a “model of proof that allows 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
AND SOURCES OF DATA
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 OPERATIONAL
DEFINITION OF VARIABLES
3.8 VALIDITY
AND RELIABILITY OF INSTRUMENT
BIBLIOGRAPHY
Alsharayri,
M. (2013). Evaluating the performance of Accounting Information Systems in
Jordanian Private Hospitals. Journal of Social Sciences 8 (1), 74-78.
American
Institute of certified public accountants, (2006). Statements of Basic Accounting
Theory. New York: AICPA publication, 1966.
.
.
.
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: C077
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