Faithful Representation of Accounting Information and Financial Performance of Quoted Banks in Nigeria (Published)
The study examined faithful representation of accounting information and financial performance of quoted banks in Nigeria using secondary data obtained from Nigeria stock exchange spanning from 2007 to 2016. Price to earnings ratio- PER and Earnings yield-ENY were selected as financial performance proxies while absolute discretionary accruals (ABSDA) was used as a measure of faithful representation of accounting information. ABSDA was subjected to Hausman test and also regressed against performance variable. Findings indicate that ABSDA is negatively correlated with PER but positively correlated with ENY. The study also confirmed a significant negative effect of ABSDA on PER and ENY implying that the more intense the practice of accounting information manipulation through the use of absolute discretionary accruals is, the greater the adverse effects on price earnings ratio and earnings yield. This is because it introduces bias which hurts the neutrality of accounting information (SFAC 8, 2010). We recommend that regulators should increase scrutiny or constraints over accounting discretion and flexibilities allowed by accounting standard to curtail distortions by financial statement preparers in order to eliminate earnings manipulation and achieve high level of faithful representation.
Keywords: Accounting Information Quality, Earnings yield, Faithful representation, Financial Performance, Nigerian Banks, Price/ earnings ratio
The Effect of Using Accounting Information Systems on the Quality of Accounting Information According to Users Perspective in Jordan (Published)
The main reason of this study is to examine the impact of Accounting information system on the on the quality of accounting information Design/methodology/approach – The study applies the quantitative method to collect the data by using structure questionnaire to extract the users opinions about how accounting information system effect the quality of accounting information, The researcher identified some criteria to understand the concept of “Accounting information system” and used qualitative characteristic (relevance, reliability, more comparability, understandability, consistency and neutrality) as a proxy to measure accounting information quality. Findings – The paper specify that all accounting information users believe the important role of accounting information system on the quality of accounting information and there is a strong effect between the two variables, which in turn have influence on users’ decisions, such as creditors, financial analysts and investors. Also the analysis result indicate the accounting information system have a significant influence on companies’ profitability, there is a strong relationship between the use of accounting information that resulted from accounting system and managerial efficiency, also the findings shows struggle of using accounting information, such as ownership cost, training cost and fighting renewal such as accounting systems.Practical implications – The results of the study have significant implications regarding users of financial statements. In particular, mangers and investors, the research validates that the importance of AIS in rationalizing the decision making. Originality/value – It is believed that there is no Jordanian study to date examining the impact of accounting information system on the quality of accounting information. Therefore, this study significantly contributes to the limited literature on the perceived the effect of accounting information system on quality of accounting information. Research limitations: The difficulty of using such studies depending on questionnaire in developing countries, such as Jordan, because they do not care about the results of the study.
Keywords: Accounting Information Quality, Accounting Information Systems, Decision- Making Process, Jordan, Profitability, Qualitative Characteristics