ACCOUNTING INFORMATION SYSTEM AND PERFORMANCE: A CASE STUDY OF NIGERIA MANUFACTURING INDUSTRIES

T Akanbi, Oladejo, M Aruwaji
2017 International Journal of Management and Social Science Research Review   unpublished
This study evaluate the effectiveness of accounting information system in enhancing manufacturing firms and thus, the research emphasized to establish the level of significant of AIS on the effectiveness of manufacturing industries. Basically, contingency theory was adopted to explain the line of relationship between the variables. A questionnaire survey was used to collect the data and a total of 80 manufacturing firms were randomly selected from the study area. Regression and correlation
more » ... nd correlation model were used to analyse this research work. The results were estimated on the level of AIS significant to the performance of manufacturing firms. The Adj. R-squared: 0.123 (profitability), 0.215 (effectiveness), 0.321 (Decision making), 0.4321 (growth), 0.511(accessibility to loan), 0.623 (capital expansion) at level of 95% confidence interval.AIS have strong influence on capital expansion, accessibility to loan, growth of the organisation and decision making than profitability and effectiveness of the manufacturing firms. Sequel to the findings and conclusion of this research, the following recommendations were made to manufacturing companies: Starting from the commencement of business, AIS should be incorporated to Finance and Account Department (FAD). Invest more on AIS in order to increase the level of operations and have more effect on their performance and subsequent training on AIS should be made available to concern staff. Introduction Before the advent of information technology, information was been processed traditionally which was full of human error, fraudulent activities, longer processing period, costlier and time consuming but with the invention of AIS all the problems associated with manual or traditional method of processing information had been resolved. Thus, an Accounting Information System (AIS) has become one of the used technologies that have empowered the accounting department immeasurably in gathering of accounting information, timely processing of the information which is void of human error and preparation of financial statement to its users, this aids firm capabilities in terms of decision making and performance improvement. AIS is generally defined as a computer-based method for tracking accounting activity in conjunction with information technology resources (Wikipedia, 2015). According to Daw and Susan (2015) AIS is the whole of the related components that are put together to collect information, raw data or ordinary data and transform them into financial data for the purpose of reporting them to decision makers. Thus, for better understand of the term 'Accounting Information System', the three words constitute AIS was elaborated by Wilkinson, 1993 and Watts, 1999, firstly, literature documented that accounting could be identified into three components, namely information system, "language of business" and source of financial information. Secondly, information is a valuable data processing that provides a basis for making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity, where the framework is focused on a set of objectives.
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