THE ROLE OF INFORMATION TECHNOLOGY IN IMPROVEMENT OF QUALITY OF THE FINANCIAL REPORTS PREPARED BY THE COMMERCIAL BANKS IN BANGLADESH
Abstract
In the 21st century, from bank to insurance, multinational companies to government offices have increased thousands of times their profitability, productivity, sustainability, and also market expansion through the successful uses of ICT. Today another aspect is the preparation of a high-quality financial report that relies entirely on the information. Quality information depends on several characteristics like completeness, accuracy, timeliness, consistency, validity, accessibility, and integrity of that information, etc. Having these characteristics in financial information is the prerequisite for good financial reporting. Usages of IT have a great role in producing quality information and financial reporting consequently. The use of IT in the banking sector is more sophisticated than in other sectors in Bangladesh. Therefore, the purpose of this research is to examine analytically the relationship between the use of Information Technology and the quality of financial reporting. Using primary data sourced a structured questionnaire was administered to selected banks in Bangladesh and data analysis was done through the General Regression Model by OLS method to examine the nature of the relationship that exists between the quality of financial reports and the Adoption of Information Technology. The result of the data analysis of the study showed that a positive correlation exists between IT and the quality of reports.
JEL Classification Codes: M1, M15, Q55.
References
Abdallah, A. A. J. (2014). The Impact Of Using Accounting Information Systems On The Quality Of Financial Statements Submitted To The Income And Sales Tax Department In Jordan. European Scientific Journal, ESJ, 9(10). https://doi.org/10.19044/esj.2013.v9n10p%p
Anderson, J. R. (1996). ACT: A simple theory of complex cognition. American psychologist, 51(4), 355.
Alabar, T. T. & Agema, R. J. (2014). Information and Communication Technology and Customer Satisfaction in the Nigerian Banking Industry, Journal of Advanced Management Science, 2(4), 333-338. https://doi.org/10.12720/joams.2.4.333-338
Amankwa, R. F., Mawutor, J. K. M., & Yiadom, E. B. (2020). A Panel Examination of IFRS Adoption and Financial Statement Quality: Evidence from Selected Firms in Ghana. International Journal of Accounting & Finance Review, 5(2), 45-53. https://doi.org/10.46281/ijafr.v5i2.768
Barakat, F. S. Q., Perez, M. V. L., Ariza, L. R., Barghouthi, O. A., & Islam, K. M. A. (2020). The Impact Corporate Governance On Internet Financial Reporting: Empirical Evidence From Palestine. International Journal of Accounting & Finance Review, 5(4), 1-22. https://doi.org/10.46281/ijafr.v5i4.852
Cooper, D. R., Schindler, P. S., & Sun, J. (2006). Business research methods (Vol. 9, pp. 1-744). New York: Mcgraw-hill.
Eruemegbe, G. O. (2015). Effect of Information and Communication Technology on Organization Performance in The Banking Sector. International Journal of Research in Engineering & Technology (IMPACT: IJRET), 3(4), 13-22.
Imeokparia, L. (2013). Information technology and financial reporting by deposit money bank in Nigeria: an empirical study. Research Journal of Finance and Accounting, 4(11), 39-47.
Janardhanan, A. K., & R, U. V. (2020). The Role of Internal Control and Firm-Specific Characteristics on Firm Value: Evidence from Indian Financial Services Sector. Indian Journal of Finance and Banking, 4(1), 117-133. https://doi.org/10.46281/ijfb.v4i1.612
Kermani, A. Z., Bigzadeh, D. F. & Khodamipour, A. (2016). Evaluation of the effect of using computer audit systems on audit quality, International Journal of Humanities and Cultural Studies, special issue, (pp. 1818-1835)
Kurfi, S. A. (2017). Adoption of International Financial Reporting Standard in Nigerian: The Good, the Bad and the Ugly. Indian Journal of Finance and Banking, 1(1), 42-61. https://doi.org/10.46281/ijfb.v1i1.84
Murungi, S. & Kayigamba, C. (2015). The impact of computerized accounting system on financial reporting in the ministry of local government of Rwanda. Journal of Emerging Trends in Economics and Management Sciences, 6(4), 261-265.
Olanrewaju, B. E. (2016). Effects of information technology on organizational performance in Nigerian banking industries. Research Journal of Finance and Accounting, 7(3), 52-64.
Saeidi, H., & Prasad, B. (2014). Impact of accounting information systems (AIS) on organizational performance: A case study of TATA consultancy services (TCS)-India. Journal of Management and Accounting Studies, 2(03), 54-60.
Salehi, M., & Torabi, E. (2012). The Role of Information Technology in Financial Reporting Quality: Iranian Scenario. Poslovna izvrsnost, 6(1), 127-127.
Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill-building approach (5th ed.). Haddington: John Wiley & Sons.
Selase, A. M., & Selase, A. E. (2019). The Pros and Cons of Adopting Technology as a Business Pilot: Global Perspective. Indian Journal of Finance and Banking, 3(2), 1-4. https://doi.org/10.46281/ijfb.v3i2.388
Zikmund, W. G. (2010). Business Research Methods, Mason, OH: South-Western Cengage Learning, 2010.
Copyright (c) 2021 Md. Abu Sina, Md. Shahnur Azad Chowdhury, Md. Tafhim Shakib, Sultana Akter, A. B. M. Yasir Arafat
This work is licensed under a Creative Commons Attribution 4.0 International License.
