Computerised Accounting Information Systems and Firm Performance: The Mediating Role of Transparency
Accounting information system (AIS) is central to an organisation, providing valuable data for decision-makers. While many studies look into the impact of technology fit and corporate governance (CG) on firm performance, this study investigates how a comp
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Computerised Accounting Information Systems and Firm Performance: The Mediating Role of Transparency Mohamad Azmi Nias Ahmad, Malcolm Smith, Zubaidah Ismail, Hadrian Djajadikerta and Mohd Saiyidi Mokhtar Mat Roni Abstract Accounting information system (AIS) is central to an organisation, providing valuable data for decision-makers. While many studies look into the impact of technology fit and corporate governance (CG) on firm performance, this study investigates how a component of CG (transparency), capability of AIS, executive visions (EV) and information technology (IT) skill impact on firm performance. Using a resource-based view (RBV) framework, hypothesised relationships among variables of interest were examined based on data collected from 336 small and medium-sized enterprises (SMEs) in Malaysia. Results from partial least square (PLS) analysis suggest that effects of AIS on firm performance were partially moderated by information transparency, a component of CG, while a full moderation effect was found for EV and IT skill on firm performance. The results thus demonstrate the importance of transparency and AIS to a greater height, prompting SMEs to revisit their policies on AIS, staff training and largely transparency to better improve firm performance.
M.A. Nias Ahmad (&) Faculty of Accountancy, Universiti Teknologi MARA (UiTM) Pahang, Bandar Pusat Jengka, Malaysia e-mail: [email protected] M. Smith School of Commerce, University of South Australia, Adelaide, Australia e-mail: [email protected] Z. Ismail H. Djajadikerta Faculty of Business and Law, Edith Cowan University, Joondalup, Western Australia, Australia e-mail: [email protected] H. Djajadikerta e-mail: [email protected] M.S.M.M. Roni Faculty of Accountancy, Universiti Teknologi MARA (UiTM) Melaka, lor Gajah, Malaysia e-mail: [email protected] © Springer Science+Business Media Singapore 2016 M.A. Abdullah et al. (eds.), Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014), DOI 10.1007/978-981-10-1458-1_5
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Keywords Accounting information system (AIS) Partial least square (PLS) Resource-based view (RBV) Small and medium enterprises (SMEs)
1 Introduction Small and medium-sized enterprises (SMEs) have to deal with hundreds or even thousands of daily transactions and towards end of the month, financial statements need to be prepared. The information provided by the accounts is vital for decision-making and mandatory for tax purposes. The process of transforming data into meaningful financial reports could be cumbersome. A company that is proficient in managing this task can have an advantage over competitors in the same industry. Computerised accounting information system (CAIS) simplify day-to-day accounting tasks and provide timely financial information to the user (Barney 1991). Nowadays, many businesses use CAIS to assist accounts preparer in preparing monthly reports. CAIS range from smaller applications to larger applications. CAIS provide supports towards organisation
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