Accounting Information System as an Aid to Decision Making Process in Deposit Money Banks in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue III, March 2019 | ISSN 2454–6186

Accounting Information System as an Aid to Decision Making Process in Deposit Money Banks in Nigeria

SOlalekan Oladipo Akinrinola¹, Enyi Patrick Enyi², Ishola Rufus Akintoye³
Department of Accounting, Babcock University, Ilishan-Remo, Ogun State, Nigeria

Abstract-Information is indispensable for decision making in any business organisation. Accounting Information System (AIS) performs a vital role in decision making in banks. Inadequate attention to the quality and reliability of the information on which decisions are made largely contribute to the failure of the use of accounting information in businesses leading to inaccurate decisions to the detriment of the organisation. This study examined the influence of AISon decision making of Deposit Money Banks in Nigeria (DMBs).Survey research design was adopted for the study with employees of all licensed commercial DMBs in Nigeria totaling 100,590 constituted the study population. The sample size comprised 420 randomly selected staff in the operations, information technology, finance and control functions. The data collected, through the use of questionnaire, were analysed using descriptive and inferential statistics through the use of the ordered logistic regressions. The study established that AIS has a significant positive effect on decision making process (β=3.432, 1.534, 2.612 and 2.992; W(402)=19.122, 2.586, 13.965 and 15.797; p= 0.000, 0.108, 0.000 and 0.000; R2 = 0.473). The null hypothesis that accounting information system does not significantly affect the decision making process was rejected with the model p-value of 0.000.The study concluded that decision making process is influenced by quality of accounting information system across DMBs in Nigeria and that AIS practices are similar in the DMBs. The study recommended that management of DMBs should continuously evaluate their accounting information system and ensures that the qualitative characteristics are not compromised.

Keywords -Accounting information system, AIS characteristics, Decision making, Deposit money banks, Relevance, Reliability

I. INTRODUCTION

One of the qualities of executives of an organisation is the ability and courage to decide on strategic initiatives and course of action that can move the organisation forward. Making decision is part of every day’s lives and it is often one of the main functions and tasks of management (Kanakriyah, 2017). It has been argued that management and decision making cannot be divorced from each other and they belong together. Decision making is a process of selection of the best alternative course of action for an optimal decision.

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