The effect of erp system implementations on the usefulness of accounting information
Download
1 / 17

The Effect Of ERP System Implementations on the Usefulness of Accounting Information - PowerPoint PPT Presentation


  • 286 Views
  • Uploaded on

The Effect Of ERP System Implementations on the Usefulness of Accounting Information. Research Question. Does ERP implementation affect the usefulness of accounting information?. Accounting information usefulness. Two primary qualitative characteristics Reliability Relevancy Timeliness.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Effect Of ERP System Implementations on the Usefulness of Accounting Information' - tokala


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Research question l.jpg
Research Question of Accounting Information

Does ERP implementation affect the usefulness of accounting information?


Accounting information usefulness l.jpg
Accounting information usefulness of Accounting Information

Two primary qualitative characteristics

  • Reliability

  • Relevancy

    • Timeliness


Hypotheses l.jpg
Hypotheses of Accounting Information

H1: ERP implementation reduces reliability of accounting information.

H2: ERP implementation improves timeliness of accounting information.


Theoretical models l.jpg
Theoretical Models of Accounting Information

ERP

Reliability

ERP

Timeliness


Reliability model l.jpg
Reliability Model of Accounting Information

ERP

Reliability

Conceptual Level

Construct

Validity

ERP

Discretionary

Accruals

Operational Level


Relevancy model l.jpg
Relevancy Model of Accounting Information

ERP

Relevancy

Conceptual Level

Construct

Validity

ERP

Reporting Lag

Operational Level


Research design l.jpg
Research Design of Accounting Information

One-group pretest - posttest design

  • tests a single group before and after a treatment

We test a group of companies before and after the implementation of ERP.


Regression model reliability analysis l.jpg
Regression Model of Accounting Information-Reliability Analysis

  • Dependent Variable---Discretionary Accruals

  • Independent Variable---Pre (no ERP) and Post (ERP)

  • Control variables

    • To control for confounding factors and increase internal validity


Regression model relevancy analysis l.jpg
Regression Model of Accounting Information-Relevancy Analysis

  • Dependent Variable---Reporting Lag

  • Independent Variable---Pre (no ERP) and Post (ERP)

  • Control variables:

    • To control for confounding factors and increase internal validity


Slide11 l.jpg
Data of Accounting Information

  • We obtain our sample of ERP system adopters from a proprietary database supplied by a leading international provider of ERP systems.

  • Sample size

    • Reliability analysis:1645 observations

    • Relevancy analysis: 1585 observations


Slide12 l.jpg

Reliability of Accounting Information

Analysis

Results


Slide13 l.jpg

Relevancy of Accounting Information

Analysis

Results


Conclusions l.jpg
Conclusions of Accounting Information

  • ERP implementations reduce accounting information reliability.

  • ERP implementations improve accounting information relevancy.


Limitations l.jpg
Limitations of Accounting Information

  • Research Design-pretest and posttest design

    • Advantage: comparisons are made by the same subjects.

    • Disadvantage: confounding factors

Alternative Designs?


Limitations16 l.jpg
Limitations of Accounting Information

  • Measures for reliability and relevancy

    • Construct validity


Limitations17 l.jpg
Limitations of Accounting Information

  • Sample selection

    • Selection bias

    • External validity