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IMPACT OF INVESTMENT IN ACCOUNTING INFORMATION SYSTEM ON BUSINESS PERFORMANCE
Accounting information system is an absolute tool in the hands of managers striving to remain in a competitive advantage amidst the rapid technological advancement, increased awareness and challenging demands from customers and business owners. This review examines the effect of accounting information system on financial performance of firms. The main objective is to review conceptual and theoretical foundations as well as empirical literature relating to accounting information system and financial performance of firms. Findings from the review reveals that past studies on effect of accounting information on financial performance limitedly aligned their works to the cost implication of accounting information system as it relates to financial performance of firms. This review also found that most of the studies employed the use of survey research design to examine this relationship and majority of the studies were carried out in advanced economies where computerized accounting system techniques have been accepted to a large extent. This review therefore recommends further research into this area to fill the gap in literature.
Keywords: Information system, accounting information system, financial performance