European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Decision Making

The Effect Of Quality Of Business Intelligence System On Quality Of Decision Making (Survey On Financial Institutions In Medan City – North Sumatera) (Published)

This study aims to examine the effect of quality of business intelligence systems on quality of decision making at financial institutions in Medan City, North Sumatra. Survey conducted on 54 operational managers to gather information and to test the hypothesis of a study. Data was collected using questionnaires. The data analyzed with simple regression analysis, while hypothesis testing used was ttest. Results of this study shown that quality of business intelligence system have significant effects on the quality of decision making.

Keywords: Business Intelligence System, Decision Making, Quality

THE EFFECT OF USING ACCOUNTING INFORMATION SYSTEMS TO IMPROVE THE VALUE CHAIN IN BUSINESS ORGANIZATIONS – EMPIRICAL STUDY (Published)

The study aims to introduce the conceptual framework of the value chain as an analytical method for business organizations, and the analysis of the role of accounting information systems and the effect of their use in improving the value chain of the business organizations. The two researchers developed a study tool (questionnaire) based on the theoretical framework and previous studies. 64 questionnaires have been distributed to a sample of the study population, which consists of employees in the finance department of public shareholding industrial companies in the Kingdom of Bahrain. 50 questionnaires have been adopted and 14 were excluded due to their incompatibility with the analysis. Using the appropriate statistical analysis tools for the study data (arithmetic mean, standard deviation, and testing of T-test One Sample) the researchers found a deficiency in the level of the availability of the basic components of accounting systems and the level of the quality of accounting information required to improve the value chain of business organizations in public shareholding industrial companies in the Kingdom of Bahrain in general. According to the results of the analysis the researchers recommended the need to work on improving the level of the basic components of accounting systems to improve the quality of accounting information, in order to improve the value chain of public shareholding industrial companies in the Kingdom of Bahrain; specifically in regards to the existence of clear and specific work procedures in the accounting system, the level of the effectiveness of internal control measures, clear definition of responsibilities and authority, and management’s attention in training and continuing education programs for employees.

Keywords: Accounting, Decision Making, Information, System, Value Chain

The role of Accounting Information Systems (A.I.S.) in rationalized Administrative Decision- making (field study) Jordanian banks (Review Completed - Accepted)

The study aims to demonstrate the role of  Accounting Information Systems in rationalized Administrative Decision- making (field study). For this purpose, a case study has been applied on Jordanian banks i.e., the study problem is the lack to capture high development of the technology and necessity responding to the Accounting Information Systems for them. Since the existence of good Information Systems will produce unique Information that helps the management on decision-making processes. This research aims at identifying the role of  Accounting Information Systems in rationalized Administrative Decision making   (field study) ,applied on Jordanian banks i.e., (Jordan Islamic Bank, Islamic International Arab Bank, the Housing Bank for Trade and Finance).The total number of the employees constitutes the three banks, the study population. The questionnaires were distributed among a random sample of (250) employees, (210) questionnaires were retrieved, i.e. (88 %)   of the total number of questionnaires distributed. (205) were subjected to the statistical analysis, i.e. 97 % of the questionnaires retrieved .The researcher used the descriptive and analytical methodology, questionnaire has been designed for this purpose, and SPSS (version 19) has been used in the analysis. The main results are; the availability of the required properties in the accounting information that is reliable in the rationalization of administrative decision-making process. Accounting information is used by employees in the rationalization of administrative decision-making.  Accounting information systems play a major role in the rationalization of administrative decision-making, there is no difference in the attitudes of the respondents towards rationalization of administrative decision-making due to sex, marital status, age and qualification .There is a difference in the attitude of the respondents towards rationalization of administrative decision-making due to the variable experience. As result, the study concluded the following recommendations: Effective use of accounting information systems in the administrative decision-making, highlighting the role of information systems in the activation of accounting control procedures and settings ,the development of tools, hardware and software that used in the operation of the accounting system, expand the use of accounting information in the planning of marketing operations and formation of future sales ‘polices, increase attention to the accounting information that can help to make analytical comparisons and predictions for the future.

Keywords: Accounting Information Systems, Decision Making, Systems

Reliance on Published Financial Statements and Investment Decision Making in the Nigeria Banking Sector (Published)

Financial Reporting Standards and Practices have in the recent past come under great criticisms, demanding that accountants take further steps in ensuring that the true and fair view of the actual worth of business are also incorporated in the financial statements published by them. This was triggered off by an unpresedented line up of corporate failures like that of Enron Corporation, World.com and others coupled with the emergence of the global economic crisis. In Nigeria also, corporate failures and distresses have been witnessed in the banking sector. Evidence was the huge collapse of the Cooperative and Commerce Bank (CCB), Orient Bank of Nigeria, African Continental Bank (ACB) all due to massive accounting related frauds. This problem resulted in the establishment of Asset Management Company of Nigeria (AMCON) to prevent corporate failures particularly in the Nigeria banking sector by acquiring and financially distress companies. This paper is a critical investigation on the degree of reliance of the published financial statements by corporate investors. The study employed survey research design by which data were generated by means of questionnaire administered on one hundred and fifty corporate investors and senior management officials of the selected banks. The descriptive statistics and percentage analysis were used for the data analysis and the hypotheses were tested using t-test statistic. The statistical package for social sciences (SPSS) software version 17.0 was employed in the analysis of data and test of hypotheses. The results reveal that one of the primary responsibility of management to the investors is to give a standardized financial statement evaluated and authenticated by a qualified auditor or financial experts (tcal (16.59) > tcritical (2.353). p < 0.05). It also showed investors do understand the financial statement well before investment decision (tcal (17.306) > tcritical (2.353). p < 0.05). The results of the analysis also indicated that investors depend heavily on the credibility of auditors/financial expert approval of financial statement in making investment decisions (tcal (4.592) > tcritical (2.353). p < 0.05) and as such published financial statement is very important in the investors’ decision making (tcal 74.500 > tcritical 6.314; p < 0.05). It hereby recommended that adequate care and due diligence should be maintained in preparing financial statements to avoid faulty investment decisions which could lead to loss of funds and possible litigations

Keywords: Banking Sector, Decision Making, Financial Statements, Investments, Nigeria

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