Impact of Corporate Governance on the Effectiveness of Accounting Information System in Jordanian Industrial Companies

Abstract

In this study, the impact of corporate governance factors on the effectiveness of accounting information system has been investigated considering Jordanian Industrial Companies. Authors considered the influence of corporate governance factors such as organisational vision, and goal translation, data-driven decision making, expertise and experience of governing committee, KPI based performance evaluation and effective collaboration between leaders and departments on the effectiveness of accounting information system. The effectiveness of accounting information system has been measured by the ease of use, security, storage, it's usability for delivery and decision making. The secondary data was collected using a questionnaire from 30 accounting firms in Jordan. Specialised software called Statistical Package for the Social Sciences (SPSS) has been used to analyse the data gathered and draw conclusions. Authors found that AIS is an effective tool for decision making and performance evaluation when management adopts the data-driven approach. However, for an effective AIS, it must be governed by subject matter experts who have expertise and experience is financial and accounting methodologies. Authors emphasised on the role of the leadership team in creating a clear vision and ASMART goals so that the AIS system can be aligned and help the departments to deliver on targets. It was observed that effective communication, collaboration among the leaders and departments significantly influence the effectiveness of AIS structure and it's ability to deliver results.