Effect of accounting information systems on qualitative characteristics of accounting information and financial reporting quality in Jordan

• Main Author: Jamil Al-Barghuthi, Sonia Baker
• Format: Thesis
• Language: English
• Published: 2021
• Subjects: HF Commerce
• Online Access: http://eprints.utm.my/108366/1/SoniaBakerJamilAl-BarghuthiPAHIBS2021.pdf.pdf; http://eprints.utm.my/108366/; http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:154540
• Institution: Universiti Teknologi Malaysia

Due to the technological and industrial developments that took place worldwide, accounting has gone through rapid development and has transformed into one of the top essential sciences, which form the basis of world economic, industrial growth and prosperity. Even though modern accounting is one of the most reputable social sciences in Europe, Jordan is still lagging in keeping abreast of the developments in accounting field. However, emphasizing the emergence of financial statements to satisfy users' needs has become a popular topic of discussion lately. This study primarily focus on the potential effects of qualitative characteristics of accounting information on financial statements through accounting information system (AIS) in Jordanian industrial firms. Industrial firms listed on the Amman Stock Market faced various challenges, especially on financial reporting and its characteristics. Thus, it raise the main question to this study on how the characteristics of accounting information can better support financial reports through the use of modern accounting systems. The study mainly aims to measure the role of accounting information and AIS characteristics to enhance the quality of the financial reports among the firms. Based on the review of previous studies, this study adopted several factors affecting industrial firms' financial reports in Jordan such as, predictive value, timeliness, feedback value, honesty in representation, verifiability, and neutrality. The study population consists of companies listed on the Amman Stock Exchange, while the sample consists of 310 respondents from 47 industrial firms. Data analysis was conducted in three phases: the preliminary data analysis, followed by the experimental study, statistical analysis of the model development, and testing the hypotheses. This research found that honesty in representation, feedback value, and verifiability significantly impacts AIS. Meanwhile, AIS, honesty in representation, and verifiability positively impact financial reporting. Furthermore, AIS mediate the relationship between qualitative characteristics of accounting information (timelines, feedback value, honesty in representation, and verifiability) and financial reporting. However, the research could not find enough evidence to support that AIS mediate the relationship between qualitative characteristics of accounting information (predictive value and neutrality) and financial reporting. Based on the nineteen (19) hypotheses that were tested in the research, eleven (11) hypotheses were supported, while another nine (8) were not supported. Similarly, the research recommended improving and developing AIS in line with the latest global developments. Additionally, the research suggested that industrial firms and policymakers in Jordan enhance the quality of AIS by focusing on accounting information characteristics that can help potential investment decisions. Finally, the research made some recommendations for future studies.