eISSN: 3087-4041 editor@aimjournals.com
All Journals
Submit your article

The Pinnacle Research Journal of Scientific and Management Sciences

Open Access Peer Review International
Open Access

Impact of Digital Accounting Systems on Financial Performance in Banking: A Contemporary Analysis

DOI https://doi.org/10.55640/tprjsms-v02i07-01A
PDF
Dr. Godfrey Otieno 1 , Dr. Nasrin Jafari 1 ,
4 School of Business, University of Nairobi, Kenya
4 Faculty of Management and Accounting, Allameh Tabataba’i University, Iran

Abstract

The integration of digital accounting systems in the banking sector has transformed financial operations, offering enhanced accuracy, transparency, and efficiency. This study provides a contemporary analysis of the impact of digital accounting systems on the financial performance of banks. Utilizing empirical data from selected banking institutions, the research evaluates key performance indicators such as return on assets, operational cost efficiency, and financial reporting quality. Results indicate a significant positive correlation between the adoption of digital accounting technologies and improved financial outcomes. The study also identifies challenges related to system integration, cybersecurity, and employee adaptation. These findings underscore the strategic importance of digital transformation in sustaining competitiveness and financial stability in the banking industry.

Keywords

Digital accounting systems, financial performance, banking sector

References

Abdullah, A. A. H., Al-Hattami, H. M., Al-Hakimi, M. A., & Al Koliby, I. S. (2024). Blockchain adoption and its impact on sustainability of accounting education. Environment, Development and Sustainability, 1–21. DOI: 10.1007/s10668-024-05466-9
Afthanorhan, W. M. A. B. W. (2013). A comparison of partial least square structural equation modeling (PLS-SEM) and covariance based structural equation modeling (CB-SEM) for confirmatory factor analysis. International Journal of Engineering Science and Innovative Technology, 2(5), 198–205.
Agbodjo, S., Toumi, K., & Hussainey, K. (2021). Accounting standards and value relevance of accounting information: A comparative analysis between Islamic, conventional and hybrid banks. Journal of Applied Accounting Research, 22(1), 168–193. DOI: 10.1108/JAAR-05-2020-0090
Ahmad, S., Ghidan, E., & Yousef, S. (2022). The adoption of cloud accounting information system in Jordanian financial firms: Influencing factor. Uncertain Supply Chain Management, 10(4), 1315–1322. DOI: 10.5267/j.uscm.2022.7.008
Airout, R. M., Alawaqleh, Q. A., Almasria, N. A., Alduais, F., & Alawaqleh, S. Q. (2023). The moderating role of liquidity in the relationship between the expenditures and financial performance of SMEs: Evidence from Jordan. Economies, 11(4), 121. DOI: 10.3390/economies11040121
Al-Hattami, H. M. (2021). Validation of the D&M IS success model in the context of accounting information system of the banking sector in the least developed countries. Journal of Management Control, 32(1), 127–153. DOI: 10.1007/s00187-020-00310-3
Al-Hattami, H. M., Abdullah, A. A. H., & Khamis, A. A. A. (2021a). Determinants of intention to continue using internet banking: Indian context. Innovative Marketing, 17(1), 40–52. DOI: 10.21511/im.17(1).2021.04
Al-Hattami, H. M., & Almaqtari, F. A. (2023). What determines digital accounting systems’ continuance intention? An empirical investigation in SMEs. Humanities & Social Sciences Communications, 10(1), 1–13. DOI: 10.1057/s41599-023-02332-3
Al‐Hattami, H. M., Almaqtari, F. A., Abdullah, A. A. H., & Al‐Adwan, A. S. (2024). Digital accounting system and its effect on corporate governance: An empirical investigation. Strategic Change, 33(3), 151–167. DOI: 10.1002/jsc.2571
Al-Hattami, H. M., Hashed, A. A., & Kabra, J. D. (2021b). Effect of AIS success on performance measures of SMEs: Evidence from Yemen. International Journal of Business Information Systems, 36(1), 144–164. DOI: 10.1504/IJBIS.2021.112399
Al-Hattami, H. M., & Kabra, J. D. (2019). The role of Accounting Information System (AIS) in rationalizing human resource related decisions: A case study of selected commercial banks in Yemen. International Journal of Management Studies, 4(2), 84–91. DOI: 10.18843/ijms/v6si2/12
Al-Hattami, H. M., Senan, N. A. M., Al-Hakimi, M. A., & Azharuddin, S. (2024). An empirical examination of AIS success at the organizational level in the era of COVID-19 pandemic. Global Knowledge, Memory and Communication, 73(3), 312–330. DOI: 10.1108/GKMC-04-2022-0094
Al-Sartawi, A., Sanad, Z., Momany, M. T., & Al-Okaily, M. (2022, May). Accounting information system and Islamic banks’ performance: an empirical study in the Kingdom of Bahrain. In European, Asian, Middle Eastern, North African Conference on Management & Information Systems (pp. 703-715). Cham: Springer International Publishing
Ali, B. J., & AlSondos, I. A. A. (2020). Operational efficiency and the adoption of accounting information system (AIS): A comprehensive review of the banking sectors. International Journal of Management, 11(6), 221–234.
Almaqtari, F. A., Farhan, N. H., Al-Hattami, H. M., Elsheikh, T., & Al-dalaien, B. O. A. (2024). The impact of artificial intelligence on information audit usage: Evidence from developing countries. Journal of Open Innovation, 10(2), 100298. DOI: 10.1016/j.joitmc.2024.100298
Alonge, E. O., Dudu, O. F., & Alao, O. B. (2024). The impact of digital transformation on financial reporting and accountability in emerging markets. International Journal of Science and Technology Research Archive, 7(2), 25-49.
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. DOI: 10.1037/0033-2909.103.3.411
Aparicio, M., Oliveira, T., Bacao, F., & Painho, M. (2019). Gamification: A key determinant of massive open online course (MOOC) success. Information & Management, 56(1), 39–54. DOI: 10.1016/j.im.2018.06.003
Azzari, V., Mainardes, E. W., Beiruth, A. X., & da Costa, F. M. (2021). The dimensions of accounting service quality. SN Business & Economics, 1(8), 105. DOI: 10.1007/s43546-021-00107-z PMID: 34778837
Baporikar, N. (2024). Effective Strategic Implementation for Organizational Sustainability. In Organizational Management Sustainability in VUCA Contexts (pp. 260–281). IGI Global. DOI: 10.4018/979-8-3693-0720-5.ch014
Ben Ali, M. S. (2022). Digitalization and banking crisis: A nonlinear relationship? Journal of Quantitative Economics, 20(2), 421–435. DOI: 10.1007/s40953-022-00292-0
Bryman, A., & Cramer, D. (1997). Quantitative data analysis with SPSS for Windows: A guide for social scientists. Routledge.
Chin, W. W. (1998). Commentary: Issues and opinion on structural equation modeling. Management Information Systems Quarterly, 22(1), vii–xvi.
Cidral, W. A., Oliveira, T., Di Felice, M., & Aparicio, M. (2018). E-learning success determinants: Brazilian empirical study. Computers & Education, 122, 273–290. DOI: 10.1016/j.compedu.2017.12.001
Daft, R. L. (2008). Organization Theory and Design (8th ed.). Cengage Learning.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. Management Information Systems Quarterly, 13(3), 319–340. DOI: 10.2307/249008
Dechow, N., & Mouritsen, J. (2005). Enterprise resource planning systems, management control and the quest for integration. Accounting, Organizations and Society, 30(7-8), 691–733. DOI: 10.1016/j.aos.2004.11.004
Delone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems success: A ten-year update. Journal of Management Information Systems, 19(4), 9–30. DOI: 10.1080/07421222.2003.11045748
Essel, R. (2021). Investigation of the effect of service quality (SQ) on patient satisfaction (PS) in Ghana using the SERVQUAl model: the case of greater Accra Regional Hospital (GARH). İşletme Ekonomi ve Yönetim Araştırmaları Dergisi, 4(2), 240-260.
Fadhilah, A. N., & Subriadi, A. P. (2019). The Role of IT on Firm Performance. Procedia Computer Science, 161, 258–265. DOI: 10.1016/j.procs.2019.11.122

Most read articles by the same author(s)

1 2 3 4 5 > >> 

Similar Articles

1-10 of 33

You may also start an advanced similarity search for this article.