ABSTACT
An
organization comprises of a combination of various information systems. These
various information systems aid the collection of data that is necessary for
management to prepare their financial reports that will aid decision making in
order to achieve organizational goals and objectives. These systems are
sometimes referred to as accounting systems. The type of accounting systems put
in place will determine the quality of accounting information generated by such
system. In this present day where users of financial statements require quality
information to aid their investment decisions, there is the need to determine
the effect of such systems on their performances. This study was embarked on to
determine the effect of accounting information system on the performance of the
banking sector in Nigeria with a particular focus on First Bank Nigeria Plc.
Our major objectives were to find out the relationship between accounting
information generated from the system with profitability represented by Return
on Capital Employed (ROCE) and Earnings per Share (EPS). In order to achieve
the objectives, we obtained secondary data from 2001 to 2010 from First Bank
Plc. and used regression analysis with e-view to analyze the data.
TABLE
OF CONTENT
CONTENT PAGES
Cover
page.......................................................................................................................... i
Title Page………………………………………………………………………………… ii
Declaration……………………………………….……………………………………… iii
Certification ……………………………………………………………………………… iv
Approval Page
…………………………………………………………………………… v
Dedication ……………………………………………………………………………….. vi
Acknowledgement
……………………………………………………………………… vii
Abstract ………………………………………………………………………………….. viii
Table of Content………………..…………………………………………………….… ix
CHAPTER
ONE: INTRODUCTION
3.7
Background to the
Study…………………………………………………………. 1
3.8
Statement of the
Problem………………………………………………………… 1
3.9
Objectives of the Study………………………………………………………….. 1
3.10
Research
Questions……………………………………………………................ 2
3.11
Significance of the
Study………………………………………………………… 2
3.12
Scope and Limitation
of the Study……………………… ……………………… 2
3.13
Definition of
Terms………………………………………………………………. 2
CHAPTER
TWO: LITERATURE REVIEW
2.1 Introduction………………………………….......……………………………….. 5
2.2 Background
overview………………....………………........……………………. 5
2.3 Accounting information
System………………………….……....………………. 5
2.4 Types of Accounting information
System……………...............………………… 7
2.5 Importance of Accounting Information
System …………………………………. 8
2.6 Information Quality
…………..........................…………..……………………… 9
2.7 Usefulness of Accounting information
System………………………………….. 10
2.8 Value Relevance of Accounting Information
System…….................................... 10
2.9 Achieving Efficient Accounting
Information System……………………………. 11
2.10
Empirical
Review........................................................................................................ 12
2.11 Characteristics
of Accounting information……………………….......................... 13
CHAPTER THREE:
3.1 Research Design………………………………………………………................ 14
3.2 Source of Data
Collection………………………………………………………… 14
3.3 Population of the
Study………………………………………………………….. 14
3.4 Sample and sampling
procedure…………………………………........................ 15
3.5 Instrument for Data
Collection………………………………………................. 15
3.6 Validation of the research
instrument……………………………….………….. 15
3.7 Method
of data analysis………………………………………………………… 16
CHAPTER
FOUR:
TESTING, RESULT AND DISCUSSION
4.1 Introduction…………………………………………………………………….. 17
4.2 Data Presentation and analysis…………………………………..……………… 24
CHAPTER FIVE: CONCLUSION AND
RECOMMEDATION
5.1 Introduction…………………………………………………………………….. 25
5.2 Summary……………………………………………………………….............. 25
5.3 Summary of
Findings………………………………………………………….. 27
5.4 Conclusion…………………………………………………......……………… 27
5.5 Recommendation……………………………………………………………… 27
Reference……………………………………………………………………………… 28
Appendix……………………………………………………………………………… 30
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
Banking has over the years
transformed from the time of ledger cards and other manual filling systems into
a system based such as computer based technology. Banking System has moved away
from a situation where all activities are manual based such as all transactions
are carried out manually; in modern day banking transactions are carried out
automatically with the support of ATM (Automated Teller Machine) and other
modern technology equipment and this has also help reduce the numbers of crowds
in the bank, and enhance and support the operation of banking.
(Adekange1986:23-25).
With modern day computer
technology, Banks now have the ability to delights its customers with superior
services and empower a knowledgeable workforce to create and make decisions.
Computer technology base Banks now have the
ability to seize opportunities and respond to market changes. They
(computerized banks) now also know how to utilize the best of both people and
technology and bringing together the best of teams of talent. They
(computerized banks), can also provide faster and better services to its
customers which can be done in an instant through the use of computer
technology. The advent of accounting information system (AIS) in the Nigerian
Banking industry marked the beginning of a new dispensation in banking and has
revolutionized traditional banking practices and redefined the entire frontiers
of banking as well as the entire work place (Adekange, 1986: 23-25).
Without computers, issues like
linkage, universal banking concepts, automated teller machine (ATM) and other
innovations would have been unthinkable. The application of computers has
improved banking performance; and computers and other information technology
have generally been identified as an important tool in attaining corporate
goals of delivery services effectively to customers which is crucial to the
sustainable growth and profitability of the bank (Brien, 1983:46).
1.2. Statement of the Problem
The banking
industry in Nigeria faces numerous challenges in maintaining accurate,
reliable, and timely financial information, which hampers decision-making and
overall performance. The adoption of Accounting Information Systems (AIS) has
been touted as a solution to improve financial management, reduce errors, and
enhance decision-making. However, there is a dearth of empirical evidence on
the impact of AIS on the performance of banks in Nigeria.
1.3 Objective of the Study
The general
objective of the Study is to ascertain the an assessment of the effect of
accounting information system (AIS) on
the performance of banking industry in Nigeria using United Bank of Africa ( UBA ) Dutse branch as
a case study.
1.
To examine the impact of AIS on the financial performance of banks in Nigeria.
2.
To assess the relationship between AIS and decision-making efficiency.
3.
To identify the challenges faced by Nigerian banks in implementing and
utilizing AIS
1.4 Research Questions
For the
successful completion of the study, the following research questions were
formulated by the research.
1. To what extent does the
implementation of AIS improve the financial performance of banks in Nigeria?
2. What is the relationship between
AIS and decision-making efficiency in Nigerian banks?
3. What are the challenges faced by
Nigerian banks in implementing and utilizing AIS?
1.5 Significance of the Study
This study will provide valuable
insights into the effects of AIS on the banking industry in Nigeria, informing
policy decisions, and contributing to the development of more effective
accounting systems.
The study will show how modern technology
has improved banking performance in retail commercial banking. It also
investigates how frontline banking personnel has been affected by (Accounting
Information System) AIS such as that performance are now with greater speed and
efficiency. The project intends
to bring awareness about accounting information and the positive effects on
customer’s service delivery in other to improve the flow of transaction.
1.6 Scope and Limitation of the Study
The scope of the study covers the effect of accounting system on the
performance of banking sector in Nigeria. The researcher encounters some
constrain which limited the scope of the study;
a)
Availability of Research Material: The research material available to the researcher is insufficient,
thereby limiting the study
b) Time: The time frame allocated to the study does not enhance wider coverage
as the researcher has to combine other academic activities and examinations
with the study.
c)
Organizational privacy: Limited Access to the selected
auditing firm makes it difficult to get all the necessary and required
information concerning the activities.
1.7 Definition of Terms
Automated Teller Machine (ATM): It is an automatic machine that recognizes a card linked
with an account number to dispense cash.
Bank: Financial
institution where money and other valuable goods are kept by concerned owners
for safe custody.
Cheque: The conditional
order in writing by which you instruct your bank to pay on demand a sum from
your current account to a named person or bearer.
Customers: It refers to
individuals who have the capacity to deal with banks.
Computer: Is a data
processing device that can perform substantial computation, including numerous
arithmetic or logic operations without intervention by a human operator during
the processing.
Electronic Fund Transfer (EFT): It is the development of banking and payment systems which
transfer funds electronically instead of using cash or paper documents such as
cheque.
E-Banking: It
can be defined as automated delivery of new and traditional banking practices
and services directly to customers through electronic, integrative
communications channel.
E-Commerce:
which means “Electronic Commerce?” is the buying and selling of goods and
services on the internet, especially the World Wide Web. This term is also used
as interchangeably with E-business.
Global System for Mobile Communication (GSM): This is a digital cellular phone technology and it is the
most popular standard for mobile phones in the world.
Information and Communication Technology (ICT): This is defined as an umbrella term that includes any
communication device or application, encompassing: cellular phones, computer, network
hardware and software, satellite systems and so on as well as the various
services and applications associated with them, such as distance learning and
video conferencing.
Information Technology (IT): This is that which comprises of computers, satellite
communications, videotext, network, cable television, software and automated
office equipments, electronic mail (e-mail).
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