TITLE:
The Role of Computerized Financial Information Systems in Increasing Quality of Financial Reports and Performance
AUTHORS:
Hamad Kasasbeh, Adel Qatawneh
KEYWORDS:
Financial Reporting, Information System, Actual Representation, Understandability, Reliability, Decision-Making, Conformity Value
JOURNAL NAME:
Theoretical Economics Letters,
Vol.14 No.3,
June
28,
2024
ABSTRACT: This research aimed at investigating the influence of a computerized financial information system in generating high-quality financial reports based on a well-built IT infrastructure. A quantitative approach was adopted by distributing a self-administered questionnaire to 135 individuals from 98 industrial stockholding organizations in Jordan. The questionnaire was based on questions related to variables of study including financial reports characteristics (Relevance, Reliability, Comparability, Understandability, Timeliness, and Faithfull Representation) as independent variables, computerized financial information systems as dependent variables and IT infrastructure, which was hypothesized to mediate the relationship between the two variables. Results of study indicated a positive influence of employing computerized system application in generating financial reports. This influence was attributed to the automated nature of IT applications in increasing understandability, reliability and timeliness of financial reports. Study recommended that organizations should increase the level of their cyber security in case they decide to adopt system in their financial activities, in addition, to deepen the managerial and operational relationship between IT department and financial department as their operations will be intersected in case of adopting system applications.