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THE ROLE OF ACCOUNTING INFORMATION SYSTEM

FEATURES ON COMPANIES FINANCIAL PERFORMANCE
IN JORDAN
Mohannad Tayseer Al-Rashdan1, Abdulkareem Ghazi Alwadi2, Dr. Takiah Binti Mohd
Iskandar3
The Almdinah International University (MEDIU)

questionnaires usable and will be adopted to

Abstract
aggregate the results. This study applied a
The need for appropriate timely information became quantitative research methodology, which included
a must to compete in this market and setting the a numerical measurement and analysis of the factors
competitive prices for the companies’ services.AIS is which influence acceptance. This study found direct
the most important system for the companies and it empirical relationship between independent
is the most different system among the sub-systems variables (System use, Information quality and
because its input is mostly monetary data and Service quality) and dependent variable company
naturally its output is formed with monetary data; financial performance in Jordan. Also, the study
these outputs affect directly the internal and found that there is non significant relationship
external users. The successful AIS would lead to the between independent variables (User satisfaction
success of the company in achieving its objectives but and System quality).The study recommended that
the unsuccessful AIS could lead to the failure of the future studies examine companies listed in Amman
company in achieving its goals meaning thereby an Stock exchange.
inability to grow, survive and enhancing
performance. The outcomes of this study have a Keyword: Financial Performance, AIS, Private firms,
relevant importance for management of private Accounting Information system.
companies that might have a problem of the
1.INTRODUCTION
development of technical progress method, to
increase their profit ability Companies’ managers working right now in a highly
This research aimed to study the impact of dedicated and changing market conditions worldwide
accounting information system features on and along these lines require data structures that offer
companies’ financial performance in Jordan. The reactions to complex business inquiries are prompt.
main objective was to identify if there is any Accounting information systems (AIS) is an instrument
relationship between AIS features (system quality, that associations can use to accomplish a more rooted
system use, service quality, information quality and and increasingly adaptable entrepreneurial society face
user satisfaction) and performance of Jordanian continual changes in the earth. One of the major reasons
private companies. This study attempted to suggest a company profits from accounting information
a model that will increase the usage of accounting technology is to get help for its business choices
information system in enhancing companies’ through the help of accounting capacities and exercises
financial performance. The population of the study including auditing, financial accounting and filing,
consisted of all private companies in Jordan that revenue management and tax information to users of
numbered of 7061 companies. In this study, financial statements to help them making
questionnaire distributed to (714) respondents (300) decisions.(Alsharayri, 2011)
respondents returned the questionnaire and (203)

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The AIS supports the business decisions by the The overall goal of this study is to specify if there is
implementations of data quality through system quality any relationship between AIS features and
and service quality. So they can make the right decisions company’s financial performance of Jordanian
that will help firms achieve its goals. private companies.
The benefits of AIS can be estimated by its effect on
enhancement of the Basic management process, 2. RESEARCH QUESTIONS
essence of evaluation of accounting data execution,
internal control, and encouraging transactions within The study's principal question is whether there is any
the company. That basic leadership and nature of relationship between AIS features and corporate
accounting data are very important skills able to make financial performance of Jordanian private companies.
the difference between the success and the failure of a Especially this study intends to find the following
firm, when management settle on a right choice, an queries:
individual must gauge the positives and negatives of 1. Is there a relationship between system quality and
every choice, and consider every one of the options for corporate financial performance?
viable basic leadership that enhance firm performance. 2. Is there a relationship between system use and
(Alsharayri, 2011) corporate financial performance?
Lately, Jordanian economy had gone through many 3. Is there a relationship between information quality
modifications due to outside adverse regional growths. and corporate financial performance?
Furthermore, thepolitical surrounded environment 4. Is there a relationship between user satisfaction and
adversely affected the economy, primarily Syria and Iraq corporate financial performance?
disasters, the huge number of immigrants have 5. Is there a relationship between service quality and
powerfully impact the Jordanian economy and corporate financial performance?
community fabric. The powerful rivalry in the private 6. The study examines the role of AIS features on
sector took place to separate its goods/services and corporate financial performance of Jordanian
squeeze its prices to make it reasonable for more private companies. The outcomes of this study are
possible customers to increase a greater market cut and expected to have a relevant importance for
take benefit from the rise in the populace. management of private companies that might have
So, due to the negative impact of these factors, the need a problem of the development of technical progress
for appropriate timely information became a must to method, to increase their profit ability. The study
compete in this market and setting the competitive would give a hypothetical premise about AIS
prices for the companies’ services. And that’s why we effective adoption measurement to organizations
should consider a way to improve the decision making because of the previous literature investigated other
process and one of the suggested options is the characteristics of AIS such as hardware, software
application of useful AIS to meet the consumers’ needs and human properties (Abu Taber, et al., 2014). It
and improve the companies’ financial performance. So would provide practical evidence about AIS
this study aims to discover if the AIS could contribute in implementation in Jordanian private companies. It
performance enhancement and to clarify if system would deliver experiential and practical assistance
quality, system users’ satisfaction, service quality (which for companies stratifying AIS by examining how the
can be measured as Efficiency, Fulfillment, System AIS features affect the company performance and
Availability, Privacy, Responsiveness, Usability, Design, recommend the companies to apply and use the
Empathy, Information, Trust and Compensation) and most useful AIS in the good way, and how system
information quality impact companies' financial quality, system use, user satisfaction, service quality
performance. Because that previous studies investigated and information quality will affect performance, that
other AIS features of such as hardware, software and can be realized through the study results.
human properties this study will try to find other
features of the AIS through questionnaire that 3. THEORITICAL FRAMEWORK AND LITERATURE
distributed to the representative sample of private REVIEW
companies.

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An organization financial performance does not only standard Numbers for ROA is between 10% - 12%. The
play the function to increase but also direct the market higher the ROA the better because the business is
value of that particular organization that ends up generating more money by the capital invested. (Taiwo,
contributing to market success specifically for property 2016)
businesses and their role as an engine of financial
development. Many research staff have presented 4. ACCOUNTING INFORMATION SYSTEM
affirmative relationship for financial improvement and
economic development while a negative relationships In a system, inputs, operational processes, outputs, and
among economic distress and development. Borhan, feedback, make up its core constituents. For any system,
and Nafees (2018). Reported that financial segment is a its purpose can only be accomplished if the outputs are
necessity in nature for financial enlargement as it produced and tendered to end users. Again, the goal of
facilitates the recruitment of funds. A well-established the information system can only be achieved if these
and well-organized fiscal sector means resourceful outputs have been used by users to make a number of
allocation of growing funds financial performance, decisions.
which leads to improving client processes and position. Accounting information system (AIS) encompasses the
Investment banks plays a part of economic system information subsystem present inside the company, and
offering sponsorship for all investment markets in the AIS accrues information from the many subsystems of
financial system throughout the sale of bonds, deposits the company and transfers it to the information
and commercial banking. Investment banks carry-out processing subsystem of the company. As described in
the nation's financial system over the short and Raed, (2017)., the traditional AIS was generally
medium-term advances. The biggest part such as asset concentrating on the amassing, processing, and
management (AM), institution size (IS) and operating communicating the information associated with finance
efficiency (OE) will participate in the development of to the parties inside the organization such as
significant unction financial performance Dekeng and management. As well as, parties outside the
Prabowo, (2015). Financial performances Represents the organization such as creditors, investors, and tax
company undertaking monetary steps. Generally, agencies.
financial performances Indicates the measures to which The traditional provision of AIS is that the functional
economic objectives have been or have been achieved domains of any organization including production,
Economic activities are the course of action to measure finance, marketing and human resources, maintain an
the results of the guidelines and actions of an isolated information system. Nonetheless, Rehab, (2018)
organization in fiscal shape. It is used to calculate the noted that companies have realised that these isolated
overall organization economic fitness over specified systems should be merged to form one seamless
period. The financial performance of organizations can database as an enterprise-wide information system.
be computed by its economic outcome and size of
earnings. Risk and profitability are two main features 4.1. AIS Features
which together decide the significance of organization.
Financial conclusions that widen uncertainty would 4.1.1. System
lower the value of the organization while increasing
productivity would increase the value of the Fitrios, (2016).have definite the framework through the
organization. Risk and profitability are the two main next words:
elements of business organization. “It is a set of parts that connected with each other and
Return on assets (ROA) reflects how well management with circumferential environment, which those parts
deploys the company's resources to generate profit working as one group, to achieve the system goals”.
(Esmeray, 2016). Return on assets shows how profitable Al-Hanini, (2015) views system as”a combination of parts
an enterprise is relative to its assets. It measures the to form a complex whole”.
management's ability to generate revenue by using The meaning of (AIS) has developed year after year from
company assets at their disposal. (Hla, andTeru, 2015) one focusing on organizing increasingly structured,
assert that return on assets should be positive and the financially quantifiable data to assist in decision-making

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processes that can be grasp an a lot more extensive the system works efficiently and that the output meets
extent of data. The measurements used to mirror the the needs of the customer, which lead to high quality
plan of AIS incorporate center, direction, time horizon, information used in decision making and high company
total, reconciliation, practicality, financial, non-financial, performance (Samuel, 2013).
quantitative & subjective.
4.1.6. Service quality
4.1.2. System Quality
The quality of the project facility has been designated as
Service consistency is a desirable feature of an the degree of discrepancy between the clienteles '
information system. For example, ease of use, system normative service prospects and their service
efficiency, system reliability, learning facility, insight, performance insights. Susanto, (2017),
complexity, response time, Grande, et al. (2010). AIS is seen as an important organizational method that
is essential to the adequacy of associations '
4.1.3. System Use management and control of choices. Susanto, (2017),
characterized the organizational appropriateness as the
System usage can be defined as "the amount of effort association's recognition of its goals. The capacity then
spent interacting with an information system or, less means meeting the targets at the lowest cost possible.
often, the number of reports or other information While different researchers, as an example, Lodinya,
products generated by the information system per unit (2017) described adequacy as a relationship between
time" (Darmansyah and Fitrijanti, 2016). goals achieved and objectives set. This could, as it were,
The system assisted by the design of models increases be determined as a proportion to imply adequacy of an
the efficiency of advanced machinery and products item.
Imitation techniques and also decreases tolerance levels
during the production process by effectively developing 5. LITERATURE REVIEW
input instruments to boost company performance
(Samuel, 2013). 5.1. AIS and Company Performance

4.1.4. Information Quality In the last decade many studies care about AIS its
effectiveness like Kharuddin, et al (2010) study the info
Knowledge quality is the production appearances system and company presentation in Malaysia and
provided by the IS, such as importance, found that SMEs receiving bookkeeping data framework
understandability, consistency, conciseness, show critical improvement in execution contrasted with
completeness, currency, appropriateness, usability non-adopters, so this study will help us to put the basis
(Patel, 2015). High data excellence (correctness, for the link between AIS and the companies
wholeness and significance to choice creation) can performance, in our study we will examine this
cause high company efficiency (high quality decision relationship in large institutions, so does the AIS in large
making) so it enhance the company performance institutions make performance differ from the SMEs or
(Sayed, 2019). not. Patel, (2015) has evaluate the effectiveness of
accounting information systems in decision making
4.1.5. Users’ Satisfaction from various aspect such as better decision making by
managers, more effective internal control systems,
User satisfaction is a separate estimation of the improvement of the quality of financial reports,
independent, systemic and social dissimilar suggestions enhancement of performance measures, facilitating
of IS Use (Seddon, 1997). Seddon (1997)Accords that financial transaction processes and helps in expansion
worker satisfaction is a result of the net profits earned of profitability of the organization. Alnajjar, (2017)
by the data system stakeholders (individuals, social examine the influence on organizational efficiency of the
authorities, corporate organization and society).If the accounting information system in the UAE, he found
operator is pleased by using a system that means that that the knowledge of accounting executives and

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highest organization often suggestively influences the Al- Dalabeeh and Al- Zeaud, (2012) showed that
organization's performance organization and structural accounting information systems has positive effect
competence on accounting information systems and Quantifying costs in Jordanian companies with a
bookkeeping data systems. By using bookkeeping data proportion of this consequence (84.2%), which is a high
systems, decision-makers improvement valuable data percentage, signifying that the research trial is definite
and use it in choice making and emerging approaches on the need and worth of calculating costs, taking into
to achieve the operative objectives and goals that account the accounting data system. Also, Large
should improve the performance of the business, this manufacturing creativities in Jordan based on the use of
study will help us see how it differs in Jordan than the book-keeping data systems for revenue and wage
UAE. Also, Salehi (2010) studied the usefulness of AIS in calculation, where the fraction of controller was very
Iran. They found that although AIS is very valuable to large (94.6%). This study help us to know the nature of
Iranian business, it is a hole between what AIS is and the Jordanian industrial companies but it did not take
what should be. This study will help us in our study to into consideration the Jordanian privatecompanies so it
know the benefits of AIS in general and we will specify will be covered in this study.
our research in the benefit of AIS that is how its useful Esmeray, (2016) the results indicated that the use of AIS
in improvement of the performance of private and the informative degree of supervisors are related in
universities. Then came Abu Taber et al. (2014), in Jordan a positive and statistically important way. That is
investigate the effectiveness of AIS, They found that the explained by the fact that the use of information systems
performance of human properties was considerably becomes more widespread when a high level of
related to the competence of AIS. Corporations with education rises. In addition, there was a positive link
well-organized software and hardware will also have AIS between the number of employees in the company and
efficiency, and organizations with effective databases the use of AIS.
will have AIS efficiency, and in our review we will analyze Studies in 2018 such as Trabulsi, (2018) study examines
whether these are efficient or not AIS boost university the link between AIS and organizational performance
efficiency. HlaTeru (2015) they studied the effective of using a sample consisting of Saudi SMEs, measured by
AIS on performance measures as a literature review. organizational performance (cost reduction, quality
They observed that AIS is of great importance to both improvement, and effective decision-making).Data is
companies and administrations in which it benefits collected using client questionnaires. Intelligent partial
facilitate Taking decisions in board, internal controls, least squares used to evaluate information and check
financial report consistency, and assists the operation of research hypotheses. The study results showed that the
the company, and evaluate Impact of AIS on the success use of AIS has a substantial impact on the overall
of a product. organizational performance and all its dimensions
Al-Dalaien and Khan (2018) Examined AIS impact on including cost reduction, quality improvement and
selected property companies ' monetary performance in efficient decision making. Another Lodinya study in
Jordan. The information was found using a well- (2017) showed that in Selected NGOs in Juba, South
designed survey that was distributed to selected real Sudan, the companies in southern Sudan have a
estate businessesworking for employees. Study answers significant positive correlation between program
have shown the AIS affects financial performance efficiency and organizational performance. The findings
significantly. also showed that in selected NGOs in Juba, South Sudan,
Qatanani and Hezabr, (2015) The objective was to there was no positive relationship between knowledge
examine the role and consequence of accounting data quality and organizational efficiency However, the
systems in enlightening the worth chain of commercial results revealed that a significant positive relationship
organizations. The scholars found a lack in the level of exists between device risks and organization. And the
accessibility of basic book-keeping systems mechanisms same year's research of Susanto found that
and the level of constancy of accounting information organizational culture greatly affects AIS so the report
needed to expand the value chain of public suggests solving the problem of using AIS by enhancing
shareholding corporate administrations. the organizational culture. Thus Teru, et al. (2017) will
see improvements in performance as controls are run

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efficiently and effectively, improved reliability of 7. METHODOLOGY

accounting information for better decision making for
both internal and external users. This research design followed a field study style within a
The study would give companies a faithful acceptance descriptive analytical approach, utilizing a survey study
dimension to a hypothetical premise about AIS. It would tool as a primary mean for data collection. This approach
provide useful guidance for AIS operations in private aims to provide a realistic description of the
companies and would also provide experiential and phenomenon, analyzing it, and then providing an
applied donations to companies in successfully explanations and connections to other phenomena.
smearing AIS in their operations. Secondary sources of data were used to support the
The following model shows the linkage of AIS features study objectives and findings. Previous International
to companies’ performance that was developed (English) studies were utilized by the researcher to guide
depending on the research hypothesis (see Figure 1). the research design. One of the essential steps of a
successful research is developing a suitable
methodology that is able to ensure the achievement of
research objectives.
This study based on quantitative models in data
collection and analysis. Quantitative model depends on
AIS numerical measurements, companyperformance
numbers, and statistical methods. A quantitative
research model abstracts of specific instances to be
found descriptions of research hypotheses, explanations
and predictions of the research variables. The research
uses questionnaires and field works in the data
collection. It also provides a conceptual framework and
action scheme from questions to sets of conclusions.
A questionnaire type of survey was used in this study. It
Figure (1):
was created to gather data from a limited number of
respondents to cover all aspects of the study. The
The researcher measured performance in this study by
questionnaire contains close-ended types of questions.
profitability and the independent variables was
Such a formulation would enable the researcher to
accounting information system that measured by
determine the issues and problems faced by the
system quality, informationquality, service quality,
company.
system use and user satisfaction.
The research model of this study is described as follows.

6.RESEARCH HYPOTHESES DEVELOPMENT

COMPANY FINANCIAL PERFORMANCE = β0 +β1
Service Quality +β2 User Satisfaction +β3 System
H1: There is a significant relationship between system
Use+β4 Information Quality+β5 System Quality+ ε
quality and corporate financial performance.
H2: There is a significant relationship between system
COMPANY FINANCIAL PERFORMANCE = is the
use and corporate financial performance.
dependent variable in the study.
H3: There is a significant relationship between
β0 = Constant.
information quality and corporate financial
β1,β2 ,β3,β4,β5:Independent Variables Coefficients.
performance.
Service Quality = one of the AIS features as an
H4: There is a significant relationship between user
independent variable.
satisfaction and corporate financial performance.
User Satisfaction = one of the AIS features as an
H5: There is a significant relationship between service
independent variable.
quality and corporate financial performance.
System Use = one of the AIS features as an independent
variable.

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Information Quality = one of the AIS features as an top managements or the Managing Director of the
independent variable. company. The selection of respondents was rationalized
System Quality = one of the AIS features as an by the selection of companies in the study. Also, the top
independent variable. management is the convenient representative of the
ε= error term. company to answer the questions on behalf of the
company.
8. TARGET POPULATION, SAMPLES AND According to corporate control department, the
RESPONDENTS IN THE STUDY population size were (7061) private companies worked
in Jordan and use AIS in one of its versions.
The population of this survey was the private companies The study divided the companies into two groups:
working in Jordan. The unit of measure in this study is Companies that applied latest AIS (last update for the
'company' and each company was represented by the system was from 3 years or less) and Companies that
Top management. Only one respondent was selected applied old AIS (last update for the system was before 3
from each company, and the respondent must be the years).
Table 1
Population and Sample
Population Samples Respondents Classification Usable

size selection Questionnaire

Companies Applied 100

old AIS

Companies Applied 103

7061 714 300 latest AIS

Total 203

Table 2
QUESTIONNAIRE
Assessing Accounting information system
System Quality
1 The system is reliable Al-Dmour, 2018; Susanto, 2013;
Menna et al. 2016
2 The system easy to learn and understand its features Al-Dmour, 2018; Susanto, 2013;
Mansour et al. 2017
3 The response time for the system is fast Al-Dmour, 2018; Susanto, 2013;

4 The system is flexible Al-Dmour, 2018; Susanto, 2013;Al-

Hanini, 2015

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Information Quality
5 Management reports are reliable Ramdany, 2015;
6 Web pages are accurate & updated Mbodo and Ekp, 2016
7 System outputs are clear Martinez-Ferrero, 2014

Service Quality
8 IT team provides support for the system Isa, 2017, Saeidi, 2014; Sasaka,2016

9 IT team has the technical competence Saeidi, 2014.Sasaka, 2016

10 Information System department is responsive, timely & Saeidi, 2014. Isa, 2017
reliable
System Use
11 Staff utilize the capabilities of an information system Samuel, 2013, Sayed, 2019;
Jones and Straub, 2006

12 Customers utilize the capabilities of an IS Sayed, 2019;Jones and Straub,

2006
13 Appropriate use of the system Samuel, 2013; Jones and
Straub, 2006

14 Extensive use of the system Jones and Straub, 2006

User Satisfaction
15 Users are satisfied with system reports Sayed, 2019; Kesuma, et
al.2017
16 Users are satisfied with the IT team support Kesuma, et al. 2017, Samuel,
2013
17 Accounting information system Improves decision making Kesuma, et al. 2017 Samuel,
2013
18 Accounting information system Improves companies sales, profits & Kesuma, et al. 2017 Samuel,
market efficiency 2013
19 Accounting information system reduces operating costs Kesuma, et al. 2017 Samuel,
2013

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20 Accounting information system improves consumer welfare Samuel, 2013; Kesuma, et al.
2017
21 Accounting information system leads to creation of jobs, and Kesuma, et al. 2017
economic development
Assessing Company’s Financial Performance
22 The company has been reporting increased profits Al-Dmour, 2018; Susanto,
2013;
23 The company has been reporting increased revenue Al-Dmour, 2018; Susanto,
2013; Sayed,2019

24 The company has been reporting increased market share Martinez-Ferrero, 2014

25 Return on assets (ROA, %) in our company is well above the Martinez-Ferrero, 2014
industry average
26 Value added per employee in our company is well above the Mwangi, 2016
industry average.
27 The number of customer complaints within the last period has Mbodo and Ekp, 2016
increased strongly
28 Speed of dealing with customer complaints (comparatively to Lyria, et al. 2017
competition) is low.
29 Productivity of employees is much higher than industry Mbodo and Ekp, 2016
average.

statistics, correlation coefficient and multiple analysis

9. DATA COLLECTION through regression to reach the study objectives.
Preliminary data are collected by using survey
The study employedsecondary data (secondary data is questionnaires, and the accounting information system
to be collected from published materials) in order to find will capture the closed-ended questionnaire data. The
the effect of AIS on corporate financial performance in questionnaire was classified into two parts. Section A will
Jordanian private companies.The primary data will be deal with the personal information while section B will
gathered through the questionnaires, which will be deal with the research variables.
designed based on the advantages of previous study, The selected respondents include all top managements
the questionnaire will be answered by top of registered companies in Jordan according to the
managements of the private companies, then the Ministry of Industry trade and supply. All top
gathered data will be analyzed using descriptive managementswere to fill the questionnaires themselves.
The questionnaires were sent by hand to each of these

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companies and left there for the top managements to Variable Cronbach's
fill. The filled questionnaires were collected after a week Alpha
of days.
System Quality .702

10. DATA ANALYSIS TECHNIQUES Information Quality .578

Service Quality .619

Data were gathered and analyzed using several
statistical techniques. This included a quantitative System Use .784
method, and both descriptive and graphical analysis.
User Satisfaction .800
Frequencies and percentages were used as descriptive
analysis to present quantitative data in the form of Company Performance .878
schedules and graphs. Using the Statistical Package for
Social Sciences (SPSS) Version 25 as well as Microsoft
11. RELIABILITY FOR ALL VARIABLES
Excel, the data from the questionnaire were encrypted
and inserted into a computer. The coded closed-ended
Cronbach's Alpha .95
items so as to run the simple descriptive analyses
(minimum, maximum, mean and standard deviation) in
order to gain the reports on the status of the data.
Moreover, the descriptive statistics which include the The data was collected using questionnaire distributed
use of absolute and relative frequencies, measures of for 30 private companies. The measure stability was
central inclination and dispersion were also analyzed. checked using Cronbach's alpha coefficient, it is shown
Further, regression analysis (Adjusted R2, F.sig and from table above that based on the questionnaire in the
correlations)employed to find out the relationship appendix.
between AIS features and company’s financial Internal consistency measured by Alpha value
performance in Jordanian companies. connected to items of system quality equals to 0.702., to
items of information quality equals to 0.578. To items of
Then the variables were computed using SPSS and service quality equals to 0.619. To items of system use
found the Cronbach’s Alpha for each variable and the equals to 0.784, to items of user satisfaction equals to
results indicate the following: 0.800.and items of company performance equals to
0.697.
Internal consistency measured by Alpha value
connected to all items equals to 0.95. All these values
Table 3 are greater than .50 which means that the measure is
Results of Cronbach’s alpha Test reliable and stable.

Table 4
Descriptive Statistics for the Companies Applied Old AIS

N Min Max Mean Std. D Skewness Kurtosis

System Quality 100 1.25 4.50 2.8150 .9126081 .491 .241 -1.027 .478

Information Quality 100 2.00 5.00 3.7362 .9204213 -.694 .241 -.574 .478

Service Quality 100 1.67 5.00 3.4831 .8245240 -.664 .241 -.655 .478

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System USE 100 1.50 4.75 3.6925 .6943631 -.819 .241 .996 .478

User Satisfaction 100 2.43 4.71 3.5421 .5167699 -.019 .241 -.310 .478

Performance 100 2.38 4.25 3.3927 .4632861 .154 .241 -.731 .478

Valid N (listwise) 100

Table5
Descriptive Statistics for the Companies Applied Latest AIS

N Min Max Mean Std. D Skewness Kurtosis

System Quality 103 1.25 4.50 2.7160 .86180 .688 .238 -.639 -.639

Information Quality 103 2.00 5.00 3.7341 .92941 -.699 .238 -.611 -.611

Service Quality 103 1.67 5.00 3.4593 .82789 -.610 .238 -.735 -.735

System USE 103 1.50 4.75 3.6990 .69870 -.778 .238 .873 .873

User Satisfaction 103 2.43 4.71 3.5261 .51852 -.036 .238 -.370 -.370

Performance 103 2.38 4.25 3.3799 .46690 .231 .238 -.709 -.709

Valid N (listwise) 103

because the nature of activities in both groups did not

need most updated infrastructure.
12. DESCRIPTIVE ANALYSIS
13. GOODNESS OF MEASURES
This section presents a descriptive analysis of the data
obtained through data collection instruments. The data We need to be reasonably sure that the instruments we
were analyzed descriptively in terms of measures of use in our research do indeed measure the variables
central tendency and measures of variability. A measure they are supposed to, and that they measure them
of central tendency includes the mean, median and accurately.
mode. A measure of variability includes standard
deviation, 13. TEST of Multicollinearity
As we can see from the results of the descriptive analysis
for both companies latest AIS and old AIS there is a The test of multicollinearity helps in identifying which
slight difference between the structure of data of both variables are affected by multicollinearity and the
groups that the answers are nearly the same that strength of the correlation, 4.9 and 4.10Tables below
represents the correlation coefficients matrix. As noted

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from the correlation matrix there is moderate results showedthat there is no relationship between
correlations between the independent variables that different variables whereby the correlation coefficients
could suggest the regression models do not have range between.021to .731 for companies applies old AIS
multicollinearity problem. and the correlation coefficients range between.020 to
The tables show correlation coefficients between .735 for companies applies latest AIS. According to
variables. For both groups (companies applied latest AIS (Anderson et al, 1993),.The table indicates that there is
and companies applies old AIS)This technique is used to no high correlation coefficients between different
detect multicollinearity problems. A high correlation variables So, there is no evidence of a multicollinearity
between any pair of independent variables may indicate problem in AIS features. So we can do regression
the presence of multicollinearityproblems. However, the analysis without problems.
Table 6
Correlations

System Information Service User

Quality Quality Quality System USE Satisfaction

System Quality 1 .036 -.029 -.175 -.021

Information Quality .036 1 .686** .623** .500**

Service Quality -.029 .686** 1 .688** .459**

System USE -.175 .623** .688** 1 .731**

User Satisfaction -.021 .500** .459** .731** 1

**. Correlation is significant at the 0.01 level (2-tailed). N=100

Table 7
Correlations

System Information Service User

Quality Quality Quality System USE Satisfaction

System Quality 1 -.020 -.098 -.202* -.082

Information Quality -.020 1 .690** .637** .474**

Service Quality -.098 .690** 1 .701** .463**

System USE -.202* .637** .701** 1 .735**

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User Satisfaction -.082 .474** .463** .735** 1

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed). N=103

14. HYPOTHESIS TESTING

This research tested the hypotheses using regression analysis. Table 4-12 showsconsequences of the examination.
Table 8
Multiple Regression Analysis

MODEL 1 MODEL 2

For old AIS Co. For latest AIS Co.

Values B T Sig. B T Sig.

(Continuous) 1.491 7.550 .000 1.557 7.852 .000

System Quality -.017 -.573 .568 -.026 -.856 .394

Information Quality .102 2.524 .013 .097 2.470 .015

Service Quality .167 3.461 .001 .162 3.417 .001

System USE .172 2.482 .015 .177 2.571 .012

User Satisfaction .089 1.204 .232 .080 1.110 .270

Adjusted R2 66% 65.8%

F (sig.) 36.473 (.000) 37.339 (.000)

N 100 103

As seen from the table above, the regression model was (adjusted R2=.660) of the variability in the dependent
significant at the 1% level (F = 36.473, Sig. = 0.000) for variablefinancial performance of the private Jordanian
the companies applied old AIS. In addition, the companies. While in the second model (for companies
dependent variables (system quality, information applied latest AIS)the regression model was significant
quality, service quality, system use besides user at the 1% level (F = 37.339, Sig. = 0.000) for the
satisfaction)involved in the model explains 66% companies applied latest AIS. In addition, the dependent

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variables (system quality, information quality, service variability in the dependent variablefinancial
quality, system use besides user satisfaction)involved in performance of the private Jordanian companies.
the model explains 65.8% (adjusted R2=.658) of the
H Hypothesis Type of The Beta Significant Result of The

the sample Score Test Hypothesis

Coefficient Testing

H1 There is a significant Old AIS -.017 .568 Rejected

relationship between

system quality and Latest AIS -.026 .394

corporate financial

performance

H2 There is a significant Old AIS .172 .015 Accepted

relationship between
system use and corporate Latest AIS .177 .012
financial performance

H3 There is a significant Old AIS .102 .013 Accepted

relationship between

information quality and Latest AIS .097 .015

corporate financial

performance.

H4 There is a significant Old AIS .089 .232 Rejected

relationship between user

satisfaction and corporate Latest AIS .080 .270
financial performance

H5 There is a significant Old AIS .167 .001 Accepted

relationship between

service quality and Latest AIS .162 .001

corporate financial

performance

guidance manuals flow charts systems, and reports to

15. OVERVIEW OF THE FINDINGS OF THE match the business's particular requirements. This is a
RESEARCH collection of documents, processes, and equipment that
Accounting information system is a financial information deals regularly with the events that influence the
system that contains accounting concepts, records organization's financial results and role. It is founded

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onInstitution database which generates information for related to user satisfaction) employing a 5-point Likert
the organization's people to achieve the organization's scale. After the survey replies for the study were ready
corporate goal. It plays a crucial role in the business and gathered, the data were first downloaded into an
organization’s success. Excel file, SPSS, and after that imported within
The study tried to determine AIS's influence on the act descriptive analysis, correlation analysis and regression
of the company. The research evaluated the AIS's analysis.
effectiveness. The analyst examined various aspects of Utilizing well-designed AIS plays a significant role in
information system characteristics. These features rising sales and working process efficiency and reducing
include system quality, system use, information quality, business services costs. companies hire AIS to enhance
user satisfaction and service quality. process efficiency such as gathering and converting
The study findings indicated that the companies applied massive amounts of data which are useful for managers
latest AIS and old AIS did not show difference in their to make tactical and strategic decisions. Users have
relationships between AIS features and company’s believed from the context of private Jordanian
financial performance that all AIS features showed the companies that the quality system helps them achieve
same significance and direction on the affecting of their desired goals and improve the quality of the task
company’s financial performance. There are significant performed.
effect by (information quality, service quality and system Studies were also conducted in the context of AIS
use) all with positive directionon company’s financial adopted environments in North America, Jordan, and
performance. Also, there is insignificant Malaysia, in the perspective of both developed and
relationshipbetween (system quality and user developing countries. These studies have reported a
satisfaction) and company’s financial performance. positive relationship between the quality of information
All research objectives achieved as this study identify the and AIS (Al-Kwasswna, 2012; Nicaoula, 2000; Shatatet al.,
relationship between system quality,system 2013). Such results showed that the information quality
use,information quality,user satisfaction andservice is a significant determinant of AIS in various contexts.
qualityand corporate financial performance as follow: Review executed on the literature throughout the
• There is non-significant negative relationship present study demonstrated the scholarly works carried
between system quality and corporate financial out and documented by previous researchers as well as
performance. the seminal works which directed to the purposes of this
• There is significant positive relationship between learning.
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