Firm size, business sector and quality of accounting information systems: Evidence from Vietnam

Abstract

This paper increases the understanding of the quality of accounting information systems in emerging economies, using data from Vietnam as an example. The quality of accounting information systems is a measure combining system quality and information quality. It is important to figure out what aspects of this measure are critical for business to enhance firm performance. This research investigates the level of accounting information system quality and examines the relationships between system quality and firm size, information quality and firm size, system quality and business sector as well as information quality and business sector, respectively. We employed descriptive statistics to illustrate the quality of accounting information systems and One-Way ANOVA to test four hypotheses. The descriptive statistics results demonstrate the level of system quality and information quality, in general, is not excellent. And there are differences in system quality and information quality in each business sector groups and firm size groups. The test result highlights a relationship between system quality and firm size but there are no links between information quality and firm size, system quality and business sector, and information quality and business sector. In conclusion, the paper extends the literature of the quality of accounting information systems and assists state agencies and executives to have a framework to improve the business performance as well.

The Effect of Organizational Culture on the Quality of Accounting Information Systems: Evidence From Vietnam

“…An innovative organizational culture is a crucial catalyst to help improve the quality of accounting information systems; thus, firm managers should cultivate an innovative culture so that every employee can contribute to helping the firm reach its goals. In the context of Vietnam, organizational culture with its own identity but not yet outstanding and clear (Do, 2015), which can be a reason for the phenomenon of not excellent quality accounting information systems (Binh, Tran, Thanh, & Pham, 2020). As a result, they can lead to insufficient accounting information for decision-making, as B. N. Nguyen (2018) has shown.…”

“…According to the authors, system quality represents the quality of the information system processing, which assesses whether the system operates efficiently and effectively. System quality measures attribute consisting of easy to learn, useful features and functions, flexible to make changes, applied modern technology, integrated, user-friendly, good documentation, response time, and time-lag between data input and output (Binh, Tran, Thanh, & Pham, 2020; Gorla et al, 2010).…”

“…Information quality : The next part of the questionnaire included questions about information quality. Information quality was measured using the previous study of Gorla et al (2010) and Binh, Tran, Thanh, and Pham (2020), consisting of items: accurate, complete, concise, useful, relevant for decision making, good appearance, and format, comparable to other outputs and easy to understand.…”

“…Traditional Vietnamese culture leads to the difference in organizational culture and quality of accounting information systems from developed countries. The accounting information in Vietnam is insufficient for making decisions (B. N. Nguyen, 2018) because the system quality and information quality are not excellent (Binh, Tran, Thanh, & Pham, 2020). Firm managers pay more attention to enhancing the quality of accounting information systems due to a firm's dependence on information systems (Gorla et al, 2010).…”

Data Mining for Bankruptcy Prediction: An Experiment in Vietnam

“…The models support how to measure the bankruptcy prediction from potential business risks. In Vietnam, the quality of accounting information is not too excellent [4] and companies listed or unlisted on the stock market report losses leading to a high risk of bankruptcy. To ensure the rights and benefit of enterprises and creditors, the Law of Vietnam in which the Law on Bankruptcy 2014 and the Law on Securities 2010 (the latest being the Law on Securities 2019 takes effect from January 1, 2021) have issued and concretized these regulations.…”