The Impact of Computerized Accounting System on Financial
Performance in Hotel Industry: Evidence from Northern
Province, Sri Lanka
Submitted by:
Mr.Thavajoganathan Laxsithan
Registration No- 2013 BAD 102
Index No – BAD13102
This dissertation submitted to the Faculty of Management Studies and Commerce, University
of Jaffna, in partial fulfillment of the requirements of the Bachelor of Business
Administration Degree Specializing in Accounting.
Department of Accounting
Faculty of Management Studies and Commerce
University of Jaffna, Sri Lanka.
November-2021
ACKNOWLEDGEMENT
My first and foremost thanks go to the Almighty God for giving me the strength, courage to
pursue my studies and conducting this research study
It is my pleasure to acknowledge my deep sense of gratitude to the Faculty of Management
Studies and Commerce, University of Jaffna, Sri Lanka for giving me an opportunity to
explore my Honors degree via this dissertation. Further, I place my special thanks to
Prof.(Dr).B.Nimalathasan, Dean, Faculty of Management Studies and Commerce, University
of Jaffna, Sri Lanka, for his knowledge sharing and guidance with approval of my title.
First, I am very much delighted to offer my grateful thanks to Mr.S.Balaputhiran, Head,
Department of Accounting for giving me permission to do the dissertation on the topic of
"The impact of Computerized Accounting System on the Financial Performance in the
hotel industry: Evidence from Northern Province, Sri Lanka".
I place my sincere gratitude on record to reword to my supervisor Senior Prof.T.Velnampy
for the support, professional advice, and guidance from the proposal writing to report
completion. His comments, guidance, patience, and enthusiasm have been the key to
completion of this study. Working under his supervision was a best platform that has helped
me to improve my ability in data analysis, and report writing at large.
I also thank my family for supporting me morally and spiritually during the whole period of
my studies and during the research study. Their encouragement, advice and support enabled
me to put in effort which enabled me to conclude the study successfully.
Furthermore, my thanks also go to all those who have contributed to this research in one way
or another, such as my fellow students and others in the preparation of this paper. Kindly
receive my gratitude. Lastly, but not least, my thanks go to the staff of the selected hotels in
Northern Province, for their cooperation and participation as respondents of the study.
T.Laxsithan
2013/BAD/102
i
LETTER OF DECLARATION
I certify that this dissertation does not incorporate without acknowledgement, any material
previously submitted for a degree or diploma in any university, and to the best of my
knowledge and belief it does not contain any material previously published or written by
another person, except when due reference is made in the text.
………………….
T.Laxsithan,
November 2021.
ii
CERTIFICATION
This is to certify that the Dissertation on
THE IMPACT OF COMPUTERIZED ACCOUNTING SYSTEM ON
FINANCIAL PERFORMANCE IN HOTEL INDUSTRY: EVIDENCE
FROM NORTHERN PROVINCE, SRI LANKA
T.Laxsithan
Reg. No.: 2021 / BAD / 102
has been accepted by the Faculty of Management Studies & Commerce, University of Jaffna,
in partial fulfillment of the degree requirements of the Bachelor of Business Administration
Degree Specializing in Accounting.
…………………………
Supervisor
…………..…………
Head
…………..……..…..…
Dean
…………………………
Date
……………….…….
Date
..……………..…………
Date
iii
ABSTRACT
Today hotel operation tends to be highly departmentalized with separate operating divisions
that provide rooms, food & beverage, banquet, gym, and more services. Therefore they have
to adapt most sophisticated accounting system to improve their operational and financial
performance. The study, therefore, aimed to establish the influence of a computerized
accounting system on the financial performance of hotels in the Northern Province of Sri
Lanka. The study adopted a descriptive research design and the target population for this
study were 60 respondents from the 11 hotels using CAS in the Northern Province of Sri
Lanka, which consist of owners, managers, accountants, accounts assistants, and internal
auditors. The total population sampling technique was used. Descriptive statistics and
inferential statistics were used to analyse data with the help of Statistical Package for Social
Studies version 20 (SPSS V 20.0). Pearson correlation was used to ascertain the relationship
between the dependent and independent variables, whereas multiple-regression was used to
assess the impact of the independent variables (Perceived Usefulness, Perceived ease of use,
Internal Control, Quality Information, Speed, Perceived Cost, Competent Computerized
Accounting System) on the dependent variable (financial performance of hotels in the
Northern Province of Sri Lanka). Based on the correlation analysis, the findings revealed that
PC and QI had a significant positive relationship with FP, and PEoU had a significant
negative relationship with FP. But IC, SP, PC, and CCAS had no significant relationship with
the FP. Based on the regression analysis, the findings revealed that PU and QI of
computerized accounting systems significantly impacted the financial performance of hotels
in the Northern Province of Sri Lanka, but PEoU, IC, SP, PC, and CCAS not significantly
impacted the financial performance of hotels in the Northern Province of Sri Lanka. The
findings also revealed that a 22% variation (Adjusted R square-0.22) in the financial
performance of hotels in the Northern Province of Sri Lanka is explained by factors of
computerized accounting systems. Finally, the study concluded that CAS is among the
essential factors required for the improvement of the financial performance of hotels in the
Northern Province of Sri Lanka. The study recommended that the hotels should be adopted
well-integrated customized Computerized Accounting systems for enhances their
performance.
Keywords: Financial Performance, Computerized Accounting System, Perceived
Usefulness, Perceived Ease of Use
iv
TABLE OF CONTENTS
ACKNOWLEDGEMENT .......................................................................................................... i
LETTER OF DECLARATION .................................................................................................ii
CERTIFICATION ................................................................................................................... iii
ABSTRACT .............................................................................................................................. iv
LIST OF FIGURE..................................................................................................................... ix
LIST OF TABLE ....................................................................................................................... x
ABBREVIATIONS .................................................................................................................. xi
CHAPTER ONE: INTRODUCTION ........................................................................................ 1
1.1 Background of the study .................................................................................................. 1
1.2. Statement of the Problem ................................................................................................ 2
1.3. Research Questions ......................................................................................................... 3
1.3.1. General question ...................................................................................................... 3
1.3.2. Specific questions .................................................................................................... 3
1.4. Objectives of the Study ................................................................................................... 4
1.4.1. General Objective .................................................................................................... 4
1.4.2. Specific Objectives .................................................................................................. 4
1.5. Significance of the Study ................................................................................................ 4
1.6. Limitation of the Study ................................................................................................... 5
1.7. Organization of the Study ............................................................................................... 5
1.8. Chapter Summary ........................................................................................................... 6
CHAPTER TWO: LIRERATURE REVIEW ............................................................................ 7
2.0 Introduction ...................................................................................................................... 7
2.1 Concept of Computerized Accounting System ................................................................ 7
2.2 Determinants of Computerized Accounting System........................................................ 8
2.2.1 Perceived Usefulness ................................................................................................ 8
2.2.2 Perceived Ease of Use ............................................................................................... 9
v
2.2.3 Internal Control ....................................................................................................... 10
2.2.4 Quality Information ................................................................................................ 10
2.2.5 Speed ....................................................................................................................... 11
2.2.6 Perceived Cost ........................................................................................................ 12
2.2.7 Competent computerized accounting system.......................................................... 13
2.3 Financial Performance ................................................................................................... 13
2.4 Theoretical review ......................................................................................................... 15
2.4.1 System Theory ........................................................................................................ 15
2.4.2 Contingency Theory................................................................................................ 16
2.4.3 Diffusion of Innovation Theory .............................................................................. 17
2.4.4 Decomposed Theory of Planned Behaviour .......................................................... 18
2.5 Empirical review ............................................................................................................ 19
2.5.1 Empirical studies on Computerized Accounting System........................................ 19
2.5.2 Empirical studies on Financial Performance .......................................................... 24
2.5.3 Empirical studies on CAS and Financial Performance ........................................... 27
2.6 Summery of Literature Review ...................................................................................... 30
2.7 Research gaps................................................................................................................. 30
CHAPTER THREE: METHODOLOGY AND CONCEPTUALIZATION ........................... 31
3.1. Introduction ................................................................................................................... 31
3.2. Area of the Study .......................................................................................................... 31
3.3. Research Design............................................................................................................ 31
3.4. Target Population of the Study ..................................................................................... 32
3.5. Sampling Design and Procedure ................................................................................... 32
3.6. Data Collection Procedures........................................................................................... 33
3.7. Data Processing and Analysis ....................................................................................... 34
3.8. Conceptual Framework ................................................................................................. 35
3.9. Operationalization of study variables ........................................................................... 36
vi
3.10. Study Hypotheses........................................................................................................ 40
3.11. Chapter Summary ....................................................................................................... 41
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION ......................................... 42
4.1. Introduction ................................................................................................................... 42
4.2. Data Reliability ............................................................................................................. 42
4.3 General Information ....................................................................................................... 42
4.3.1 Gender of the Respondents ..................................................................................... 42
4.3.2 Marital Status of the Respondents .......................................................................... 43
4.3.3 Age of the Respondents .......................................................................................... 44
4.3.4. Academic Qualification of Respondents ............................................................... 44
4.3.5. Designation of Respondents .................................................................................. 45
4.3.6. Experience of Respondents .................................................................................... 46
4.4 Information about the Hotels in Northern Province ...................................................... 46
4.4.1. Number of employees in the hotels ....................................................................... 46
4.4.2. Type of the Hotel ................................................................................................... 47
4.4.3. Type of Business Organization .............................................................................. 48
4.4.4. Departments/ Divisions of the hotels. .................................................................... 48
4.4.5. Type of computerized accounting system used among the hotels. ........................ 49
4.4.6. Years of Using Accounting Software .................................................................... 50
4.5 Analysis of Study Variables........................................................................................... 50
4.5.1 Perceived Usefulness .............................................................................................. 51
4.5.2 Perceived Ease of Use ............................................................................................. 52
4.5.3 Internal Control ....................................................................................................... 52
4.5.5 Quality Information ................................................................................................ 53
4.5.6 Speed ....................................................................................................................... 54
4.5.7 Perceived Cost ........................................................................................................ 54
4.5.8 Competent Computerized Accounting System ....................................................... 55
vii
4.5.9 Financial Performance of hotels in Northern Province of Sri Lanka ...................... 56
4.6 Diagnostics testing ......................................................................................................... 57
4.6.1 Normality Tests ....................................................................................................... 57
4.6.2 Multicollinearity Tests ............................................................................................ 58
4.6.3 Autocorrelation Assumptions Tests ........................................................................ 58
4.7 Model Fitting ................................................................................................................. 59
4.7.1 Correlation Analysis ............................................................................................... 59
4.7.2 Regression Analysis ................................................................................................ 61
4.7.3 Analysis of Variance ............................................................................................... 61
4.7.4 Regression Model Coefficients ............................................................................... 62
4.8 Summary of Hypotheses Test ........................................................................................ 63
4.9 Chapter Summary .......................................................................................................... 64
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS ...................................... 65
5.1 Introduction .................................................................................................................... 65
5.2 Summary of Study Findings .......................................................................................... 65
5.3 Conclusion and Recommendation ................................................................................. 66
5.4 Suggestions for Further Research .................................................................................. 66
REFERENCES ........................................................................................................................ 68
APPENDICES ......................................................................................................................... 76
APPENDIX I: LETTER TO RESPONDENTS ................................................................... 76
APPENDIX II: QUESTIONNAIRE .................................................................................... 77
viii
LIST OF FIGURE
Figure 2.1 Computerized Accounting System Model.............................................................. 16
Figure 3.1Conceptual Framework ........................................................................................... 36
Figure 4.1 Gender of the respondents ...................................................................................... 43
Figure 4.2 Marital status of the respondents ............................................................................ 43
Figure 4.3Age group of the respondents .................................................................................. 44
Figure 4.4 Academic qualifications of respondents ................................................................. 45
Figure 4.5 Current positions of the respondents ...................................................................... 45
Figure 4.6 Work experience of respondents ............................................................................ 46
Figure 4.7 Number of employees in the hotels ........................................................................ 47
Figure 4.8 Type of the hotels ................................................................................................... 47
Figure 4.9 Type of Business .................................................................................................... 48
Figure 4.10 Departments/ Divisions of the hotels ................................................................... 49
Figure 4.11 Years of using Accounting Software .................................................................... 50
ix
LIST OF TABLE
Table 3.1 Study Population ...................................................................................................... 32
Table 3.2 Operationalization framework ................................................................................. 37
Table 4.1 Reliability test results for the study variables .......................................................... 42
Table 4.2Type of Computerized Accounting System used among the hotels ......................... 49
Table 4.3 Perceived Usefulness ............................................................................................... 51
Table 4.4 Perceived Ease of Use.............................................................................................. 52
Table 4.5 Internal Control of CAS ........................................................................................... 53
Table 4.6 Quality Information ................................................................................................. 53
Table 4.7 Speed ........................................................................................................................ 54
Table 4.8 Perceived Cost ......................................................................................................... 55
Table 4.9 Competent Computerized Accounting System ........................................................ 55
Table 4.10 Financial Performance of the hotels in Northern Province of Sri Lanka ............... 56
Table 4.11 Normality Statistics................................................................................................ 57
Table 4.12 Multicollinearity Test ............................................................................................ 58
Table 4.13 Autocorrelation Assumptions Test ........................................................................ 59
Table 4.14 Correlation Analysis .............................................................................................. 60
Table 4.15 Model Summary .................................................................................................... 61
Table 4.16 Analysis of Variance (ANOVA)............................................................................ 61
Table 4.17 Regression Coefficients ......................................................................................... 62
Table 4.18 Summary of Hypotheses Test ................................................................................ 63
x
ABBREVIATIONS
AIS
: Accounting Information System
CAIS : Computerized Accounting Information System
CAS
: Computerized Accounting System
CCAS : Competent Computerized Accounting System
DTPB : Decomposed Theory of Planned Behaviour
DV
: Dependent Variable
FP
: Financial Performance
IC
: Internal Control
ICT
: Information and Communication technology
IV
: Independent Variable
PC
: Perceived Cast
PEoU : Perceived Ease of Use
PU
: Perceived Usefulness
QI
: Quality Information
SMEs : Small and Medium Sized Enterprises
SP
: Speed
SPSS : Statistical Package for Social Sciences
TAM : Technology Acceptance Model
TPB
: Theory of Planned Behaviour
xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
The innovation of information and communication technology (ICT) has drastically
revolutionized the usage of financial management and accounting practices. ICT has become a
tool to provide a competitive edge for corporations, financial institutions, manufacturing
industries, and specifically in the accounting profession. In particular, ICT has been a major
factor in efficient and reliable accounting systems, thus it has improved organizational
performance (Taiwo and Edwin, 2016).
In terms of accounting, it is an integral part of any business whether large or a small entity. It
plays a vital role in measuring the financial performance of a company's activities during a
course of a stipulated time. For this reason, accounting plays a vitally important role in the
management success or failure of contemporary business institutions.
Therefore, it is advantageous to set up a computerized accounting system to record, analyse and
interpret financial or accounting information for management. Compared to other traditional
manual systems of accounting, the computerized accounting system ensures speed, accuracy, and
reliability of financial information (Akande, 2016; Shiraj, 2015; Ware, 2015). Prior to the
introduction of ICT in accounting practice, all the accounting activities were performed
manually. However, with the introduction of a computerized accounting system, it has become
easier for every accountant or accounting practitioner to use this system. (Amahalu, Abiahu, and
Chinyere, 2017) conducted a comparative analysis of computerized accounting system and
manual accounting system in Microfinance banks in Nigeria from 2006 to 2015. As the results of
the findings indicated that a computerized accounting system had a significant contribution
toward the profitability of banks compared to the manual system. The study further
recommended that banks should implement computerized accounting systems to improve the
overall financial performance of the business. In today's computerized, interconnected, global
business environment, Computerized Accounting Systems have become the "engine of growth"
in business organizations. It, therefore, involves the computerization of accounting information
systems which is established in order to facilitate decision making.
In Sri Lanka, most of the small and medium businesses have not succeeded because of the
inadequate accounting information system and poor accounting practices. The Central Bank of
Sri Lanka (1998) stated that inadequate capital, inadequate institutional credit facilities, use of
out-dated
technology,
improper
accounting
techniques,
inadequate
sales,
promotion
1
competencies and inattentiveness of small businesses are the main problems faced by the Sri
Lankan small and medium businesses. Therefore, they need to adopt well defined Computerized
Accounting Systems to make a strategic competitive advantage to survive as well as to grow.
Hotel Industry in Northern Province
Tourism is a fast growing economic activity in many countries around the world, and plays an
important role in the economic and technological development of nations. In Sri Lanka,
particularly in Northern Province, tourism has been an emerging sector aftermath of civil war.
Therefore, in recent past year more investors attracted to invest in hotel industry. Currently, there
are number of hotels in Northern Province which they deliver the quality of services to their
customers.
Today, most hospitality businesses in hotels, motels, food service, and beverage operations use
computers to record, report, and analyse the effectiveness of internal operations. The paradigm
shift of technology is shaping the hotel business and improving operational and financial
performance. With the means of Hotel Accounting Software, the accounting personnel and
management can track their day-to-day finances, as well as perform the future prediction of
revenue and expenses, when handling the operations efficiently.
But, it is an unfortunate truth that hotel industry is sometimes behind the curve when it comes to
adopting the latest technology. In the competitive environment of the hotel industry, a
sophisticated portfolio of information systems applications and high-quality information
technology infrastructure play a vital role in hotel performance (Ayoobkhan and Kaldeen, 2019).
1.2. Statement of the Problem
Despite the importance of a computerized accounting system, there are many private companies
that do not implement this system. This eventually has led to incidences of accounting
malpractices, misreporting of financial statements, delays in the preparation of financial reports,
misrepresentation of financial information which results in distorted information. Moreover, it
has prompted fraudulent activities prolonged by accountants or accounting practitioners in the
organizations. All of these challenges have a negative impact on the overall financial
performance of the organizations (Ndalahwa, 2019).
Furthermore, the various repetitive accounting cycles encountered in hospitality operations
create unique difficulties in forecasting revenue and operating costs. In particular, variable costs
(e.g., cost of sales and labor costs) require unique planning and procedures that assist in budget
forecasting. Since hospitality operations are people-oriented and people-driven, it is more
2
difficult to effectively automate and control hospitality costs than other non-hospitality business
sectors (Jagels, 2007). Moreover, a hotel operation tends to be highly departmentalized with
separate operating divisions that provide rooms, food & beverage, banquet, gym and more
services. Therefore they have to adapt most sophisticated accounting system. In light of these
challenges, this study examines the effects of a computerized accounting system on the financial
performance of hotel industry.
Moreover, there are several studies which have examined the effects of computerized accounting
system on financial performance in the various sectors and industry (Chaturvedi and Sharma,
2021; Al-Rashdan, Alwadi, and Iskandar, 2020; Al-Waeli, Hanoon, Ageeb, and Idan, 2020;
Uzrail and Bardai, 2019; Ndalahwa, 2019; Kashif, 2018; Al-Dalaien and Khan, 2018; Borhan
and Nafees, 2018; Anael, 2017; Akanbi and Adewoye, 2018). Further some studies, which have
examined the financial performance in hotel industry (Alaoma, Godwin, and Okwudili, 2017;
Al-Wattar, Almagtome, and AL-Shafeay, 2019; Sharma and Upneja, 2005). However, in Sri
Lankan context, there is no study which has examined the impact of computerized accounting
system on the financial performance in the hotel industry. Thus, this study intended to fill this
research gap by assessing the impact of Computerized Accounting System on the financial
performance in hotel industry in Northern Province, Sri Lanka.
1.3. Research Questions
Based on the research problem, this study attempts to answer the questions of;
1.3.1. General question
 What is the impact of computerized accounting system on financial performance in the
Hotel industry in Northern Province?
1.3.2. Specific questions
 What is the relationship between Perceived Usefulness (PU) and the financial performance?
 What is the relationship between Perceived Ease of Use (PEoU) and the financial
performance?
 What is the relationship between Internal Control (IC) and the financial performance?
 What is the relationship between Quality Information (QI) and the financial performance?
 What is the relationship between Speed (SP) and the financial performance?
 What is the relationship between Perceived Cost (PC) and the financial performance?
 What is the relationship between Competent Computerized Accounting System (CCAS) and
the financial performance?
3
1.4. Objectives of the Study
On the basis of the research questions, this study investigates the following objectives;
1.4.1. General Objective
 The main objective is to assess the impact of computerized accounting systems (CAS) on
the financial performance in the Hotel industry in Northern Province.
1.4.2. Specific Objectives
The main objective has been broken down into the following specific objectives:
 To examine the relationship between Perceived Usefulness (PU) and the financial
performance
 To examine the relationship between Perceived Ease of Use (PEoU) and the financial
performance
 To examine the relationship between Internal Control (IC) and the financial performance
 To examine the relationship between Quality Information (QI) and the financial
performance
 To examine the relationship between Speed (SP) and the financial performance
 To examine the relationship between Perceived Cost (PC) and the financial performance
 To examine the relationship between Competent Computerized Accounting System (CCAS)
and the financial performance
1.5. Significance of the Study
 The findings of this study contribute to the existing body of knowledge on the impact of
CAS on financial performance in hotel industry in Northern Province.
 This information was of great importance to other business companies and bodies that have
adopted and those that are yet to adopt the system of computerized accounting in knowing
the pressure points to be emphasized and well managed in order to pursue the system
successfully.
 Also, findings of this study serve as a stimulant and stepping stone for future researchers and
academicians by suggesting areas where further studies need to be conducted on the same or
similar topics.
4
1.6. Limitation of the Study
The research would be faced with these limitations
 The most critical limitation of this study was time schedule for the study, because of this
study based on primary data.
 The study was conducted only on the hotels which are using CAS; other hotels were not
considered. Therefore, the use of this study limited the generalization of the findings.
 Another limitation of this study was uncooperative respondents: as usual, not every
respondent during research is completely willing to cooperate positively towards the
demands of the researcher, some are even hostile. However, giving up on the respondent
will only hinder the acquisition of the necessary information.
 Another constraint was time duration as it was crucial task to gather information from those
who working the accounting related tasks in the Hotels within 3 months.
1.7. Organization of the Study
The study was conducted in five chapters.
Chapter one is Introduction that provided the background of the study, problem statement,
research question, objective of the study, significant of the study and also the limitation of the
study. It provides brief insight into the research study.
Chapter two is Literature Review that is provided the concept of CAS, determinant factors of
CAS and concept of financial performance, theories. And the review of literature brings to fore
the gap emerging from these works for further research. The gap justifies the statement of
problem of research which this study has set for itself as no work has been done so far
specifically on the topic of research under study.
Chapter three is Research Methodology that presents the research design and methods used to
address the research problem. This chapter describes the geographic and demographic profile,
organizational profile, research design, data collection methods, population of the study, sample
selection, conceptualization, operationalization framework, research hypotheses, and methods of
data analysis.
Chapter four is Data Presentation and Analysis that review the presentation of data and data
analysis then the discussion of the integrated results of the statistical techniques will be used to
explain the hypothesis of the study and summary. The information derived from the primary
sources is presented
5
Chapter five is Conclusion & Recommendation that review results and discussion of the study,
discussed about suggestion and recommendation. Finally the conclusion involves very short
description of the study.
1.8. Chapter Summary
This chapter consists discussion on background of the study as the entrance for the research topic
and the problem statement which are necessary to perform research process effectively and
accurately. These were discussed in the section 1.1 and 1.2. The purpose of the study is to
investigate the effect of Computerized Accounting System on the financial performance.
Research questions, objectives of the study, significance of the study, limitation of the study and
organization of the study were discussed in the section 1.3, 1.4, 1.5, 1.6, and 1.7 respectively.
6
CHAPTER TWO: LIRERATURE REVIEW
2.0 Introduction
This chapter covers Concept of Computerized Accounting Systems, Financial Performance,
Theoretical Review, Empirical Review and Research Gap.
2.1 Concept of Computerized Accounting System
A computerized accounting system refers to the method or scheme by which financial
information about business transactions is recorded, organized, summarized, analysed,
interpreted, and communicated to stakeholders through the use of computer and computer-based
systems such as the internet and accounting software. This makes easier the automation of
accounting tasks (Brecht and Martin , 2006). (Frankwood and Alan, 2005) defined computerized
accounting as a set of aggregate components that cover all inputs, storage, transactions,
processing, collecting and reporting of financial transaction data. Every proper accounting
system, be it manual or computerized should follow the generally accepted accounting
principles, and also the framework for the maintenance of records and generation of reports
should be well defined and easy to be understood.
From the point of view of various scholars (Amidu, Effah, and Abor, 2011; Mohd , 2012; Ismail,
Abdullah, and Tayib, 2003; Stefanou, 2006; Munasinghe and Munasinghe, 2015) The Computer
Accounting System (CAS) in relation to business organizations have become an important tool
to improve the efficiency of the organization and support its competitiveness through providing
management with financial and accounting information. Such information is used to make
various decisions regarding planning, control, performance evaluation, and other decisions. In
this emerging economy, the use of CAS is crucial to complete tasks effectively and efficiently.
Furthermore, (Nash, Heagy, and Courtney, 1999) argued that in terms of advancements of
technology, information systems have been computerized. Advancements in this technology
have replaced manual bookkeeping systems with a computerized system, so, previously
manually performed accounting information systems are now done by computers in most
companies. Although accounting systems have been around for centuries, the introduction of
business technology and Computerized Accounting Systems has extremely changed the playing
field. Therefore, in order to ensure that CAS can be used to its utmost benefits, the acceptance
and effect of the system on performance is crucial to the Entrepreneur context.
7
2.2 Determinants of Computerized Accounting System
2.2.1 Perceived Usefulness
Perceived usefulness is defined as a person's subjective perception of the effortlessness of a
computer system, which affects their perceived usefulness thus having an implied effect on the
user's technology acceptance. It is defined as the degree to which a person believes that using a
particular technology will enhance his or her job performance. (Davis, 1989).
Perceived usefulness means consumers' perceptions regarding the outcome of the experience.
(Pikkarainen, Pikkarainen, Karjaluoto, and Pahnila, 2004) stated that the perceived usefulness of
a computerized financial information system was the most influential factor in determining its
usage. It was found that users had a significantly strong relation with the usage, greater than that
between perceived ease of use and usage (Guriting and Ndubisi, 2006)
(Williams, 2005) in his study argues that computerized financial accounting systems are of more
importance to firms. Systems for small and medium-sized firms can be purchased off the shelf at
low cost. These programs allow managers to see the firm's financial position in real-time and
make adjustments to the business strategy as needed which poses a great deal towards high firm
performance. Computerized systems can also provide instant reports on profit and loss, stock
evaluation, customer accounts and payroll and sales analysis, again, allowing faster adjustments
in your business strategy. In addition, transactions should be input only once, and, with some
training, anyone in the company can handle the inputting.
Using a computerized accounting system can save time and hereby the firm performance is
increased. A computerized accounting system allows faster data entry than manual accounting
and allows documents such as invoices, purchase orders, and payroll to be collected and printed
quickly and accurately. Because of its efficiency and ease of use, computerized accounting
systems also allow one to improve payment collection, saving time, and improving cash flow
and inventory control. Because computerized accounting systems update some records
automatically, the firms' account records will always be up to date, saving time in updating thus
improvement of the firm financial performance (Balachandher, Santha, Norhazlin, and Rajendra,
2001)
Perceived usefulness refers to the user's perception to the extent that the technology will enhance
the user's workplace performance (Davis, 1989). This implies that the user has a perception of
how useful the technology is in performing his or her job tasks. This includes doing the job with
less time, more efficiency, and accuracy.
8
(Shin, Kim, Tao, and Kim, 2010) found that perceived benefit has an influence on user
acceptance of the computerized accounting system. (Kumar and Ravindran, 2012) revealed that
perceived usefulness depicts cognitive beliefs formed via secondary information and so
satisfaction was found to be a stronger predictor of continuance intention; there is a significant
effect of perceived usefulness on the intention to use computerized accounting system. (Dass and
Pal, 2011) pointed out that a positive effect on demand and adoption of the computerized
accounting system from perceived usefulness predictors. (Lanlan, Ahmi, and Popoola, 2019;
Sam, Yosuo, and Tahir, 2012; Zhang, Aidi, and Muse, 2019; Jusoh, Mohamed, Afzainizam, &
Ahmad, 2018) revealed a similar idea that the perceived usefulness has a significantly positive
correlation to CAS adoption. However, (Darshi, Nanayakkara, and Gunawardene, 2019) found
that a positive relationship between perceived usefulness and CAS but that is not statistically
significant.
2.2.2 Perceived Ease of Use
Perceived ease of use is defined as “the degree to which an individual; believes that using a
particular system would be free from physical and mental effort” (Davis, 1993). Perceived ease
of use explains the user’s perception of the amount of effort required to utilize the system or the
extent to which a user believes that using a particular technology will be effortless (Davis,
Bagozzi, and Warshaw, 1989). Perceived ease of use has been established from previous
research to be an important factor influencing user acceptance and usage behaviour of
information technologies (Igbaria and Livari, 1995).
In the context of CAS, the emergence of information technology changes the way on how
accounting transactions are being recorded. Professional accountants need to know and learn to
use a computer and understand how to record the accounting transaction through CAS. The way
on how it is recorded is different from the manual accounting system, and it is also varied among
the types of CAS and the brand of accounting software itself. To some extent, the system
developers need to understand the user expectation on how they perceive ease of use on the
system. Therefore, perceived ease of use will affect the user's ability to use CAS.
(Lanlan, Ahmi, and Popoola, 2019; Jusoh et al, 2018; Rogers, 2016) pointed out that a
significantly positive effect on adoption of the computerized accounting system from perceived
ease of use predictors. However, (Munasinghe and Munasinghe, 2015) found that a positive
relationship between perceived ease of use and CAS, but that was not statistically significant.
But, (Ilias and Zainudin, 2013; Sam et al, 2012) found that significantly negative effect on the
adoption of the computerized accounting system from perceived ease of use. However, (Akanbi
9
and Adewoye, 2018; Fadzilah, 2017) pointed that the perceived ease of use has a significant
impact on financial performance, but (Ndalahwa, 2019) found that it impacted insignificantly.
2.2.3 Internal Control
As described by (Anderson, 2008) internal control is defined as a process affected by an
organization's structure, work and authority flow, people, and management information systems,
designed to help the organization accomplish specific goals or objectives. It is a means by which
an organization's resources are directed, monitored, and measured. It plays an important role in
preventing and detecting fraud and protecting the organization's resources.
(Tavakolian, 1995) pointed out that using IT methods has its own troubles, as it might lead to
ease of modifying with accounting information, which is difficult to detect unless the internal
control systems (ICS) move ahead with the technological developments and are able to detect
and prevent the occurrence of manipulation, which necessitates more attention from internal
control and interest in the security and safety of information (Ali , 2012). Internal controls should
be integrated with the electronic systems in light of the enormous development of data electronic
processing (Allaila , 2002). Accordingly, internal control plays a vital role in preventing and
detecting fraud.
The more effective entity’s computerized accounting system and internal control systems are
assessed to be the lower the auditors’ assessment of control risk. Where auditors obtain adequate
audit evidence from tests of control as to the effectiveness of the computerized accounting and
internal control systems, the degree of substantive procedures may be reduced (www.frc.org.uk).
(Topcu, 2019) stated that implementation of the e-accounting system will affect financial
performance with the effects of internal control systems. Therefore the effectiveness of internal
control on financial performance should be considered as the most important in every
organization as the task of internal control is to prevent and detect fraud in the organization.
Several empirical studies have shown that the built-in internal control functionalities in
computerized accounting systems have improved the performance of firms in terms of
productivity, profitability, reporting, and service delivery (Al Hanini, 2015; Al-Waeli, Hanoon,
Ageeb, and Idan, 2020; Ige, 2015; Christauskas and Miseviciene, 2012; Saracina, 2012; AlQudah, 2011).
2.2.4 Quality Information
A computerized accounting system is a delivery system of accounting information for purposes
such as providing reliable accounting information to users, protecting the organization from
10
possible risks arising as a result of abuse of accounting data and system among others. Therefore,
Nash (2003) noted that the quality of accounting information and performance of the accounting
systems is a great concern to management
Moreover, the quality of information provides a comparative advantage to the organization. CAS
offers an option of acquiring quality information which serves as a comparative advantage (Xu
2010). Therefore, organizations invest in CAS so that timely flows of quality information could
be increased for better management decisions. (Essex and Magal, 1998) argue that quality
information obtained through CAS is essential for management. Therefore, organizations often
use CAS to back up their management decisions. Usually, financial analysis of accounting
information is used in decision-making, and often the analysis is done by using CAS. Using
business technology, CAS can process a large amount of data for managers and owners of the
firms (Vitezand and Baligh, 2011).
(Norwahida and Shukeri 2014) noted that the quality of information is strongly related and
positively impacts the perception of company internal auditors. (Al Rashdan, 2020; Borhan and
Nafees, 2020; Borhan and Bardar, 2018; Alnajjar 2017) pointed out the quality of information
has a significant impact on financial performance. However, (Uzrail and Bardai, 2019) found
that quality of information has an insignificant impact on financial performance.
2.2.5 Speed
Computerized accounting systems have been credited for their quick processing speed and large
storage capacity. Using computerized accounting systems ensures up-to-date account balances
are available at any time to aid management in decision making. Computerization saves time on
transactions hence leading to quality of financial reporting as timely, accurate, and reliable
information can be generated (Chan and Kelvin, 2010). With the substantial increase in the
number of transactions and increase in the need for real-time information, maintenance of
accounting data on a real-time basis has become essential.
Computerized accounting systems allow accountants to process large amounts of financial
information and process it quickly through the accounting system. Rapid processing times for
daily transactions from each person have also reduced the amount of time required to close out
each accounting period. Monthly, quarterly or year-end periods closing and preparing statements
can be resulting in longer hours and a higher workload. Shortening this time period aids firms in
cost control, which increases overall organizational efficiency (Isa, 2017). (Borhan and Nafees,
11
2018; Borhan and Barder 2018) pointed out that a significant impact of speed on the profitability
and market share of the firm.
2.2.6 Perceived Cost
Cost is one of the most significant factors that influence the consumer adoption of innovation
(Alam, 2009). The cost factor may consist of the initial purchase price, on-going usage cost,
maintenance cost, and upgrade cost (Luarn and Lin, 2005). Perceived financial cost (PCF) with
respect to the adoption of the computerized accounting system relates to the cost of availing the
services to customers, time-saving subscription fees. Therefore, the lower the transaction charges
as well as subscription fees, the higher the rate of adoption.
(Pagani, 2004) stated that the cost factor was one of the main determinants of a Computerized
Financial system. (Anil, Ting, Moe, and Jonathan, 2003) also stated that cost is one of the factors
influencing the adoption of the computerized financial system in Singapore state corporations.
(Mochoge, 2014), stated that perceived cost significantly impacts customer decision to use webbased marketing by SMEs. In addition, (Wei, Marthandan, Chong, Ooi, and Arumugam, 2009)
argued that perceived cost is one of the barriers that prevent the Malaysian government from
using m-commerce.
(Kimenyi and Ndung'u, 2009) stated that the rapid growth of the computerized accounting
system in Kenya is evidenced by the huge need for low-cost financial services. The introduction
of the computerized financial system has really changed how people can carry out businesses
because they need not go to their bank premises. This has resulted in the flexibility of carrying
out several transactions at any time anywhere, thus, time and cost-saving. In addition to that,
(Ng’weno, 2010) argued that a computerized accounting system serves as a secure alternative to
transact a large amount of cash, as well as time-saving cost and people, can also pay for their
electricity bills within moments without traveling to the office. (Morawczynski and Pickens,
2009) found that urban users of Computerized Accounting System adopted it because it is
cheaper than any other money transfer option.
The costs of computerized accounting systems should be adequately flexible to meet the
resulting changes in the demands made upon them. This will ensure that the software to be used
in these firms is affordable therefore will enable firms to use the best accounting systems
improving firm performance (Idowu, Alu, and Adagunodo, 2002).
The computerization of financial systems needs some amount of financial commitment with
plenty of managerial and technological expertise required at the very beginning of the
12
installation process in order to launch a successful venture. There is the need to evaluate the costbenefit effects that will assist in carefully weighing the two so as to know the benefits to be
evolved from it since, in the end, the major focus will be on the benefits which will improve firm
performance (Schmalensee, 1999).
2.2.7 Competent computerized accounting system
Competent accounting information management is also one of the key components of
computerized accounting system competency that helps auditor's report have to reason fully
documented. Computerized accounting system competency requires reliable and accurate
information about the area of care being investigated. The firm needs to have an effective data
collection strategy in place before it starts collecting data for auditing (Choe, 2004). Nothing is
more frustrating than spending valuable time collecting data to find that it is not what you
wanted or collecting too much information that is unused. The firm need to ensure that there is
collect the correct information to meet auditing objectives and auditor's information is collected
accurately and timely (Andon, Chong, and Roebuck, 2010).
Competent computerized accounting systems help businesses in their accounting processes
creating high financial performance in firms. Each system may be different, but the intention of
competent computerized financial and accounting systems is to help a business be more efficient
and effective in its financial matters thus increasing firm and financial performance. If planning
to purchase a new computerized accounting system, the more competent and accurate it is, the
better off the company is in its financial performance (Yasuharu, 2003).
Competent financial information management refers to the process of fusing the financial
information in a handy way which makes it easier to manage data and can be retrieved or
regained by firms whenever needed (Knechel, 2007). Talking about data, these are essential in
every minute of the business run. It becomes a requisite for all firms to manage their precious
data. Looking at the cost and other factors, these firms prefer data management companies to
manage their data (Zambon and Zan, 2000)
2.3 Financial Performance
Financial performance encloses a personal measure of how well a company is able to utilize the
assets from its basic business method and generate revenues. Similarly, financial performance
becomes a public measure of companies’ financial health over a certain time period. Financial
performance can be tested and this can be done individually or in aggregation (Uzrail and
Bardai, 2019).
13
According to (Weber, 2008) financial performance is a combination of a firm’s financial health,
its ability and desire to fulfill its long-term financial obligations, and its commitment to provide
services in a foreseeable future. Financial performance is the process of performing a financial
activity. In a broad sense, financial performance refers to the extent to which financial objectives
are being or has been accomplished. It is the process of measuring the results of a firm's policies
and activities in monetary terms.
Financial performance is widely regarded as the ability to accomplish a firm's financial
objectives. The two important indicators of financial performance are investors' returns and
accounting returns. The investors' return is measured from the perspective of the shareholders,
while accounting returns focus on how the firm’s returns respond to different managerial policies
(Ofoegbu, 2003).
(Farah, Farrukh, and Faizan, 2016) noted that financial performance is the measure of a
company's financial health over a period of time. In other words, it is a financial measure used in
order to generate higher sales, profitability, and value for its shareholders by managing its
current and non-current assets, financing, equity, revenues, and expenses. Its main purpose is to
provide financial information to shareholders and stakeholders so that they can make wellinformed investment decisions. It can be used to evaluate similar companies from the same
industry or to compare companies in aggregation.
There are several ways to measure a company’s financial performance, including return on
investment (ROI) and return on assets (ROA), which subjectively measure how the company
uses its primary business assets to make a profits (Ng’etich, 2017; Mayes and Toporowski,
2007). (Ruri, 2017) State that financial performance can be determined by a number of ways,
though all should be considered as one. Items in the income statement like turnover, inventory
levels cost of sales, operating income and expense as well as cash flows from operating activities
can be used. (Hussain and Stanikzai, 2021) argue that the financial performance of a business is
mainly comprised of four areas such as financial activity analysis, structure analysis, working
capital, and profitability analysis.
Every firm are expected to be profitable and there are some checks on profitability such as
whether a firm has made a loss or profit on its ordinary or normal activities and by how much
this year’s loss or profit is higher or lower than the previous year’s loss or profit. Profitability
measures involves sales margin which is turnover less the cost of sales (Bare, 2016)
14
(Ross, Westerfield, and Jatte, 1996) noted that profitability can be split into its main components;
net turnover and net profit margin. High turnover means better use of assets owned by the
company and therefore better efficiency while a higher profit margin means that the entity has a
substantial market power.
Liquidity is another factor that determines the level of firm performance. (The International
Financial Reporting Standards, 2006) define liquidity as the available cash for the near future,
after taking into account the financial obligations corresponding to that period. (Liargovas and
Skandalis, 2008) argues that firm can use liquid assets to finance its activities and investments
when external finance are not available. On the other hand, higher liquidity will allow a firm to
deal with unexpected contingencies and to cope with its obligations during periods of low
earnings.
In principle, the company's assets are said to be liquid if they are converted into cash within a
relatively short period without loss in value (Brealey, Myers, and Marcus, 2001). Whether the
business is gaining more capital to ensure smooth running of its activities without endangering
its liquidity position is the significance performance issue. In view of that, liquidity measures
denote one side of an element of entire organizational performance, though inadequate indicators
that can signify a complete concept. Together, absolute and percentage terms can be used to
measure liquidity (Subrahmaniyam, 2009).
Working capital which is an excess of current asset over current liability is a good measure of
organization liquidity. Working capital refers to the capital required in the everyday operations
of the business and thus acts as the driver to the organization's growth (Harris, 2005). This
includes inventory management, cash management, account payable management, and account
receivable management. This is to ensure that there is sufficient cash flow to cover current and
the future operational expenses (Muguchia, 2018).
2.4 Theoretical review
This section dealt with the theories that were important to the subject of this study. The theories
included systems theory, contingency theory, Diffusion of Innovation Theory, and Decomposed
Theory of Planned Behaviour.
2.4.1 System Theory
The general systems theory was introduced by Bertalanffy in 1930s. He defines a system as “a
set of elements standing in interrelation among themselves and with the environment”
(Bertalanffy, 1972). The definition above is that each system has interrelated components (sub15
systems) that perform their functions to achieve the goals of the whole system. The systems
theory deals with the interaction and relationships between the various parts of an entity, such
that the sum of the parts is considered more than the system itself (Mele, Pels, and Polese, 2010).
Therefore, the outcome of a system depends on the integration between its various components
or sub-systems.
Systems theory is relevant to this study because the methods proposed by the theory is to model
complex entities created by multiple interaction of components by abstracting from certain
details of structure and component and concentrating on the dynamics that define the
characteristics functions, properties and relationships that are internal or external to the system,
Computerized Accounting System is a computer based system, which combines accounting
principles concepts as well as the concept of information system to record, process, analyse and
produce financial information to its users to make economic decisions (Gelinas, Sutton, and
Hunton, 2005).
The illustrated figure below relates the CAS to systems theory since it involves multiple
components which interact to generate usable results these are input, processing, storage, users
and output.
Figure 2.1 Computerized Accounting System Model
Source: (Gelinas, et al., 2005)
2.4.2 Contingency Theory
The contingency theory was formed by Fred Edward Fiedler as found in the work (Gordon and
Miller, 1976). The contingency theory states that the behaviours leaders’ exhibit should be
depend on the prevailing situation of the organization. The contingency theory does not advocate
the argument that there are universal management practices that results in high organizational
performance but management decisions and systems aimed at achieving high performance
should be contingent on the internal and external environment of the organization. The
16
contingency theory, therefore, suggests the optimal approach to systems management adopt to
achieve high performance.
Applying the contingency theory to the accounting software applications, there are several
accounting software/systems that result in higher efficiency in financial reporting but the
accounting software management should be contingent on the existing management system.
Accounting software/systems are part of the overall management system that results in
organizational effectiveness (Bahati, 2014). It has become necessary to adopt or design
accounting software that is contingent on the management system that has been designed in line
with the organization's strategic objective. Therefore, the accounting software that an
organization adopts must be contingent on the overall management system.
Moreover, management systems are designed with built-inflexibility to facilitate changes when
the business environment changes. This implies that accounting software that companies design
should have some extent of flexibility so that when management systems change, they can be
changed to meet the new management systems (Rotich, 2017). Therefore, the contingency theory
suggests that a universal accounting software or system that results in high-quality financial
accounting reporting does not exist and that the type of accounting software or system should be
a consequence of the management system and the overall business strategy.
2.4.3 Diffusion of Innovation Theory
The diffusion of innovation theory is adopted for the study to describe the extent to which the
user of technology accepts a new technology. The theory was found in the work of (Rogers,
2002). The theory argues that the relative advantage, compatibility, complexity, triability, and
observability of the new technology influence the degree to which employees accept new
technology.
The theory argues that the extent to which employees regard the technology as being better than
the existing method of performing work activities influences them to develop a positive attitude
towards the technology. Furthermore, where employees regard technology as compatible with
existing principles, systems, and methods of performing their work, they are more likely to adopt
the technology. Moreover, when a new technology being introduced is difficult, users are less
likely to accept the new technology. Also, when the technology can experiment and results from
the utilization of the technology used are visible, employees are more likely to adopt the new
technology.
17
Applying the diffusion of innovation theory to the use of accounting software, when the
accounting software is believed to be better than the existing means of preparing financial
reports, employees will accept and use the technology. Also, when the principles underlying the
accounting software are compatible with the existing accounting principles and procedures, it
makes it much easier for employees to use the software in preparing financial reports. Despite
the compatibility, if the accounting software is difficult to use, it creates confusion and
employees are less likely to use the software. Furthermore, when the accounting software can
experiment and the results can be seen, employees will develop a positive attitude towards the
accounting software.
2.4.4 Decomposed Theory of Planned Behaviour
Decomposed Theory of Planned Behaviour (DTPB) was formulated through a combination of
both the Technology Acceptance Model (TAM) (Davis, Bagozzi, and Warshaw, 1989) and
Theory of Planned Behaviour (TPB) (Ajzen, 1991) which was intended for providing a better
understanding of behavioural intention by concentrating on the factors that are likely to impact
systems use. TAM is an information systems theory that models how users come to accept and
use technology. The model suggests that when users are presented with new technology, a
number of factors influence their decision about how and when they will use it, notably include
Perceived Usefulness (PU) and Perceived Ease-Of-Use (PEOU). (Davis, 1989) emphasized that
PEOU and PU influence in a significant way the attitude of an individual through two main
mechanisms namely self-efficacy and instrumentality.
DTPB model specifies that attitude towards technology has three dimensions namely, relative
advantage, complexity and compatibility. (Shimp and Kavas, 1984), found that relative
advantage refers to the degree to which an innovation offers benefits over and above other
existing alternatives. Such benefits include economic benefits, image enhancement, convenience
and satisfaction. In the context of this study, the computerized accounting system is considered
an innovation and has advantages over manual systems. The computerized system facilitates
workload, performs faster and the likelihood of making errors is minimal. The compatibility of
an innovation is its ability to fit into the existing values, previous experience, and current needs
of the adopter (Rogers, 2002). Therefore, the SME’s willingness to adopt a computerized
accounting system may be influenced by the current requirements such as faster processing of
the customer’s proceeds.
In addition, the cost of the system against the resources available corresponds with the existing
values. Given the available resources and the competing needs of the firm, the cost of the system
18
may influence resource allocations towards its adoption. This study was guided by four theories
namely; system theory, contingency theory, Innovation diffusion theory, and Behavioural
Theory. The contingency theory explains that accounting information systems should be
designed in a flexible manner so as to consider the environment and organizational structure
facing an organization. Innovation diffusion on the other hand explains the factors influencing
the different types of computer technology and IT adoption. Lastly, Decomposed Theory of
Planned Behaviour explains attitude towards a technology related to the organizational context.
2.5 Empirical review
2.5.1 Empirical studies on Computerized Accounting System
The literature about the computerized accounting system has been studied by many researchers
in relation to various topics.
(Itang, 2020) conducted a study on the extent to which Nigerian SMEs use built-in internal
control features in their Computerized Accounting Systems, as well as the reasons why they do
not use any internal control features of the Computerized Accounting Systems. The researcher
identified the internal control features of CAS, such as Access Controls, Segregation of Duties,
Accuracy Checks, Security Controls, and Audit Trail Controls. The results of the study indicate
that Nigerian SMEs utilize various accounting packages in the performance of their accounting
function, with Peachtree, QuickBooks, and MS Navision being the most widely used. Further
Nigerian SMEs make optimal use of the built-in internal control features in their Computerized
Accounting Systems. The study pointed out the reasons why companies make less use of few
internal control features, lack of awareness about the availability of the internal control features
in their accounting systems, the limited number of accounting staff, and lack of formal internal
control policies.
(Ismael, et al., 2020) conducted a study in Northern Iraq particularly in Zanko bank to determine
the impact of CAS on the effectiveness and efficiency of internal audits. The finding of the
study indicated that CAS played moderately contributed to the effectiveness and efficiency of
auditing by making the processing of transactions faster and mitigating errors. The findings
revealed that there is a significant impact of audit effectiveness on the auditing process and that
audit efficiency.
The study conducted by (Darshi, et al., 2019) examined the factors which affect the adoption of
CAS in SMEs in Sri Lanka. In this study, four factors were included in the research model as
managers’ support, perceived usefulness, ability of bearing the cost and human resource
19
proficiency. The finding of the study revealed that the manager’s support and the firm’s costeffectiveness have a statistically significant positive relationship with the adoption of CAS in
SMEs. According to the survey results, it has confirmed that there is a positive relationship
between perceived usefulness and Human Resource proficiency on the adoption of CAS but it is
not statistically significant.
(Abdulle, Zainol, and Ahmad, 2019) assessed the impact of Computerized Accounting
Information System on SMEs performance in Mogadishu, Somalia. The results of CAIS’s
impact were discussed from four components of balanced scorecard namely financial, customer,
internal processes and learning & growth perspectives. The finding of the study denoted that a
significant relationship between higher CAIS adapters and financial perspective, and also
internal processes improvement and learning & growth have a significant relationship with CAIS
adapters. The findings of this study, therefore, furnish the existing body of knowledge on the
impact of CAIS on the performance of SMEs in Mogadishu, Somalia.
A study was done by (Lanlan, Ahmi, and Popoola, 2019) to examine the connection between the
two variables of the Technology Acceptance Model (TAM), perceived ease of use and perceived
usefulness, and use of CAS among accountants in micro and small enterprises (MSEs). The
study finding revealed that perceived ease of use and perceived usefulness have a beneficial
impact on the use of CAS. Moreover, perceived ease of use and perceived usefulness have a
positive association with the intention of using CAS.
According to (Jusoh, Mohamed, Afzainizam, and Ahmad, 2018) done a study on the usage
factors of Computerized Accounting Systems among SMEs in Malaysia. The factors that have
been reviewed include perceived ease of use, perceived usefulness, cost, selection and size of the
business. The study found that factors influencing the decision of SMEs to engage in
Computerized Accounting Systems include perceived usefulness, ease of use, cost, choice, and
size of business.
(Ironkwe and Nwaiwu, 2018) conducted a study in Nigerian companies on the effect of AIS on
financial and non-financial measures. In this study, reliably informed decision, greater
competitive advantage, timely financial transaction process, and formidable internal control
mechanism are the AIS indicators; Sales growth and ROCE are financial measures; Employee
satisfaction and Product quality are Non-financial measures. Based on the findings the study
revealed that the AIS had a significantly positive effect on financial and non-financial measures
indicators of Nigerian companies.
20
(Trabulsi, 2018) conducted a study in Saudi SMEs on the impact of Accounting Information
Systems on organizational performance. The findings revealed that using an Accounting
Information System has a significant impact on all dimensions of organizational performance
such as cost reduction, improving quality, and effective decision making.
Moreover, (Borhan and Bader, 2018) conducted a study in Jordan to assess the impact of
Accounting Information Systems on the profitability of banks. Profitability was taken as
dependent variable whereas speed, qualitative information, and work simplification were used as
independent variable. Based on the findings highlight that Accounting Information Systems have
a significant impact on the profitability of Jordanian banks.
(Teru, Idoku, and Ndeyati, 2017) conducted a study in relation to the impact of Accounting
Information Systems for effective internal control on firm performance. The findings from the
study revealed that the implementation of AIS will lead to effective and efficient control and
provide reliable accounting information for making a better decision for both the internal and
external users, therefore, this will improve firm performance.
(Sekyere, Amoateng, and Frimpong, 2017) conducted a study in Ghana to examine the factors
affecting the accuracy of financial reports in listed banks. The findings revealed that the quality
and accuracy of financial reports are affected by the users with a better understanding and
expertise in computerized accounting. Also, the study pinpoints most of the respondents agreed
that Computerized Accounting Systems minimize errors and duplications. The study found that
further most banks in Ghana run a fully Computerized Accounting System in financial reporting
where they maintain the financial reporting qualities of timeliness, reliability, and accuracy
because of a Computerized Accounting System. The study suggested that banks should place
much emphasis on training of staff to match the information needs of the bank with available
software.
Moreover, (Alnajjar, 2017) conducted a study in UAE SMEs on the impact of Accounting
Information Systems on organizational performance and performance management. The study
investigated the impact of accounting manager’s knowledge and top management support on the
accounting information systems and, the impact of accounting information systems on the
performance management and organizational performance. The findings from the study revealed
that accounting managers' knowledge and top management support have impacted significantly
on the Accounting Information Systems in an organization. Moreover, Accounting Information
21
System significantly impacts the organizational performance and performance management of
the organization.
Moreover, (Akande, 2016) assessed whether the implementation of a Computerized Accounting
System has a positive influence on the performance of entrepreneurs in South-western Nigeria.
The findings of the study revealed that Computerized Accounting Systems were used by
entrepreneurs in order to generate timely and accurate reports through the fast and efficient
processing of accounting data. Moreover, the researcher was noticed that the adoption of
Computerized Accounting Systems by entrepreneurs is based on the efficiency and effectiveness
of the system toward entrepreneur operations. Therefore, the researcher concluded that the
Computerized Accounting System is significantly related to the performance of entrepreneurs,
and is positively influenced.
(Munasinghe and Munasinghe, 2015) conducted a study in the North Central Province SMEs in
Sri Lanka on that the factors that influence on Usage of a Computerized Accounting System on
SMEs. The study identified cost, business size, management support, government support,
infrastructure, perceived ease of use, and external environment as factors affecting CAS. The
findings of the study revealed that 40% of SMEs adopted CAS for keeping accounting records.
Furthermore, business cost, business size, and external environment are the factors, significantly
influenced the usage of CAS. Therefore the study suggested that if the software development
companies will minimize the software development cost of CAS and by providing a variety of
options to SMEs can encourage the acceptance of new technologies in SMEs.
(Salihi, Jibril, and Ibrahim, 2015) conducted a study in Nigerian banks to assess the extent of
customers’ satisfaction on the Computerized Accounting System. The study reviewed fast Track
ATMs and normal ATMs, data protection, accuracy, efficiency and effectiveness, faster nest,
improvement, reliability, profitability, and growth, easy logging, easy understanding, fast track
ATMs performance, comportability, saving time, acceptance, performance, and satisfaction as
the predictors of customer satisfaction in e-banking. The findings of the study show that there is
a significant relationship between the Computerized Accounting System and customer
satisfaction, and as a result suggested the government should be provide enabling environment to
improve the quality of the Computerized Accounting System in Nigeria.
(Gunawardana, 2015) examined the existence and adequacy of implemented Computerized
Accounting Information Systems (CAIS) security controls enable to prevent, detect and correct
security breaches in the selected listed companies in Sri Lanka. The results of the study highlight
22
significant differences between listed companies regarding the adequacy of implemented CAIS
security controls and inadequately implemented CAIS security controls. Based on the findings of
the study, some suggestions are made to strengthen the breaches in the existing CAIS security
controls in the listed companies. Therefore the findings of this study will help accountants,
auditors, managers, and IT users to better understand and secure the CAIS to achieve the success
of their visions.
(Neogy, 2014) conducted a study in Bangladesh to assess the efficiency of Accounting
Information Systems in selected mobile telecommunication companies. The study analyzed the
indicators of efficiency of Accounting Information Systems such as effective internal control
systems, security measures, good documentation, separation of operation from accounting,
adequate disclosure, cost effectiveness and independent internal and external audit. It has been
revealed that the safeguarding of assets, reliability, and accuracy of accounting information, and
prevention of frauds has been shown to enhance the effectiveness of AIS by having an internal
control system.
(Okoye and Gbegi, 2012) conducted a study through the first city monument Bank PLC, which
is the impact of a Computerized Accounting System on services provided in the banking sector.
The findings of the study showed that this system provides guarantees that are more reliable in
the banking sector. The recommendation of the researcher emphasized that banks ensure their
employees have more knowledge about the system to make efficient and increase the success
through using a Computerized Accounting System.
(Polo and Oima, 2012) examined how CAS being affected public companies on audit risk
management at Kisumu in Kenya country. In this study audit risk management is the dependent
variable and Assessment of risks, Monitoring and evaluation, Control awareness, Attitude and
Perception, Technology are the independent variables. The result of the study identified risks
associated with information system areas have risks that breach the security system that the
information provided to an obtained inadequate system.
A study was done by (Jawabreh and Alrabei, 2012) to identify the reality of accounting
information systems in four and five-star hotels in terms of planning, controlling and decision
making. Data was collected through structured questionnaire from various hotel accountants. The
study findings revealed that there is no relationship between accounting information system and
planning, controlling, and decision-making in four and five star Jodhpur Hotels. The study
23
recommended that enhancing staff rehabilitation and developing the information system at
Jodhpur hotels towards the efficient application of accounting information system methods.
(Amviko, 2011) conducted a study through the National Water and Sewerage Corporation,
Mbale Branch the in which he aimed to identify the impact of Computerized Accounting
Information Systems on financial reporting, and he concluded that Computerized Accounting
Systems actually have an influence on the quality of financial reports for publishing purposes.
The researcher observed that CAS developed financial reporting which shows the efficiency of
the company's progress.
2.5.2 Empirical studies on Financial Performance
(Hussain and Stanikzai, 2021) conducted a study in Afghanistan to examine the effects of
financial management practices such as accounting Information system, financial information
system, and working capital management on the financial performance of small and medium
enterprises in the service sector of Province Nangarhar. The results revealed that good financial
management practice is a backbone for the profitability of small and medium enterprises. The
study found that financial management practices such as Accounting Information System and
Working Capital Management have a positive significant effect except the Financial Information
System on financial performance. The study suggested that the financial practices of Accounting
Information systems, Working Capital management are to be given core consideration along
with consideration towards other Financial Practices by the management of SMEs specifically at
Jalalabad, Nangarhar, Afghanistan. Further, by improving the financial performance of the small
and medium businesses, the employees should be aware of the accounting-related software with
the introduction of modern techniques of how to handle financial transactions for the sake of
reliability and timely accurate reporting system.
(Ukko, Nasiri, Saunila, and Rantala, 2019) conducted a study in Finland SMEs that examines
the role of a sustainability strategy in the relationship between a digital business strategy and
financial performance. The researcher classified that managerial capability and operational
capability as two capabilities needed to realize a digital business strategy. Therefore this study
pronounced that when sustainability strategy acts as a promoter there is a relationship between
managerial capability and financial performance but prohibits the relation between operational
capability and financial performance.
(Maqbool and Zameer, 2018) conducted a study in India to examine the relationship between
corporate social responsibility and financial performance of 28 commercial banks listed in the
24
Bombay stock exchange. The findings of the study indicated that CSR has a positive impact on
the financial performance of Indian banks. Therefore, the researcher concluded that this study
provides excellent insights for management to integrate CSR with the strategic objective of the
business, and renovate their business philosophy from a traditional profit-oriented to socially
responsible approach.
(Thuva and Muturi, 2017) conducted a study to determine the factors that affect the financial
performance of Income Generating Units in public universities, specifically a case study of Jomo
Kenyatta University of Agriculture and Technology Enterprises Limited (JKUATES). This study
outlines four main objectives, which were to determine the effect of liquidity, internal controls,
operation cost, and unit structure on the financial performance of these units. The study found
that there is a significant negative relationship between operating costs and financial
performance, but internal controls was a significant positive relationship with the financial
performance of Income Generating Units in public universities in Kenya. However, the study
found that liquidity and unit structure was an insignificant relationship with the financial
performance of Income Generating Units in public universities in Kenya. The study concluded
that operating costs and internal controls significantly influence income-generating units in
public universities in Kenya. Therefore, The study suggested that the management of incomegenerating units in public universities in Kenya should manage their operating costs effectively
to ensure that they do not affect their organizations' financial performance adversely.
(Thomas, Charles, Zablon, and Jared, 2016) conducted a study in Kenya to assess the influence
of working capital management practices on the financial performance of SMEs in Machakos
Sub-County. The study design was a cross-sectional survey. The study used financial
performance indicators (dependent variable) such as growth in total sales, growth in total assets,
growth in net income, and growth in market share. And independent variables of this study were
working capital management practices such as cash management, receivables management, and
inventory management. The findings of the study revealed that; working capital management
practices were low in SMEs because the majority did not adopt formal working capital
management practices and their financial performance was on a low average. The study further
revealed the financial performance of SMEs was positively related to efficient cash management,
efficient receivable management, and efficient inventory management significantly. Further, the
study concluded that working capital management practices influenced the financial performance
of SMEs; therefore, therefore, SMEs owners or managers should adopt effective working capital
25
management practices as a strategy to improve their financial performance in order to survive in
a turbulent business environment.
(Lunardi, Becker, Carlos, Maçada, and Dolci, 2014) conducted a study in Brazilian firms to
examined whether the adopted IT governance mechanisms impact the financial performance, by
measuring pre and post-adoption performance indicators. The study revealed that companies that
adopted IT governance practices improved their performance in terms of profitability especially
when compared to the control group. Furthermore, the study found that adoption of IT
governance mechanisms had a greater impact on financial performance in the year following
adoption than in the year of adoption.
A study was conducted by (Omondi and Muturi, 2013) to find out the factors affecting the
financial performance of listed companies at Nairobi Securities Exchange in Kenya. The findings
revealed that liquidity, Company size, and company age had a significant positive effect on
financial performance, but leverage had a significant negative effect on financial performance.
The study suggests that there is a need to determine an optimal debt level that balances the
benefits of debt against the costs of debt and developing sound techniques of managing current
assets to ensure that neither insufficient nor unnecessary funds are invested in current assets as
maintaining a balance between short-term assets and short-term liabilities is critical. The study
also suggested that firms should expand in a controlled way with the aim of achieving an
optimum size so as to enjoy economies of scale which can ultimately result in a higher level of
financial performance.
(Ongore and Kusa, 2013) done a study in Kenya to examine whether bank-specific factors and
macroeconomic factors affect the overall performances of banks, and whether ownership identity
has influenced the relationship between bank performance and its determinants. The study used
Return on Asset (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) as the major
performance indicators (dependent variables). The major determinants (independent variables)
were capital adequacy, asset quality, management efficiency and liquidity management which
are bank specific factors. GDP growth rate and Average Annual Inflation Rate are the
macroeconomic variables used as independent variables. The findings of the study revealed that
bank specific factors significantly affect the performance of commercial banks in Kenya, except
for liquidity variable. But the overall effect of macroeconomic variables and the moderating role
of ownership identity on the financial performance of commercial banks were insignificant.
Therefore, this study concluded that the financial performance of commercial banks in Kenya is
26
driven mainly by board and management decisions, while macroeconomic factors have
insignificant contribution.
A study was done by (Almajali, Alamro, and Al-Soub, 2012) to examine the factors affecting the
financial performance of Jordanian Insurance Companies Listed at Amman Stock Exchange.
Based on the finding the study revealed that liquidity, leverage, Management competence index,
and Size have statistically positive effects on the financial performance of Jordanian Insurance
Companies. Therefore the study suggested that a high consideration of increasing the company
assets would lead to better financial performance and there is a significant need to have highly
qualified employees in the top managerial positions.
2.5.3 Empirical studies on Computerized Accounting System and Financial Performance
The literature about the influence of Computerized Accounting System on financial performance
has been studied by many researchers on various topics.
(Chaturvedi and Sharma, 2021) conducted a study to examine and analyses the influence of
accounting information systems on insurance company profitability and efficiency in India. The
results of this analysis helped company owners and managers to understand the importance of
using an accounting information system (AIS) derived from accounting software to achieve
profitability and efficiency. The study revealed that several factors influenced the use of AIS,
including productivity, reliability, ease of use, data quality, and accuracy, all of which influenced
firm performance.
(Al-Rashdan, Alwadi, and Iskandar, 2020) conducted a study in Jordanian private companies on
the impact of Accounting Information System features on financial performance. AIS features
such as computer quality, computer usage, service quality, information quality, and user
satisfaction were used for research as factors affecting financial performance. The findings of the
study indicated that service quality, information quality, and system use has a significant positive
impact on the financial performance of the company, But system quality and user satisfaction
have insignificant effects on the company’s financial performance. Furthermore, the study found
that there was no difference between the companies using the latest AIS and older AIS in the
relationship between AIS features and the financial performance of the company.
The study of (Al-Waeli, Hanoon, Ageeb, and Idan, 2020) investigated that the effect of the
accounting information system on financial performance with the role of internal control as the
mediator. The results pointed to a significant impact of timeliness, accuracy, and verifiability on
financial performance, and no significant effect on the relevance of financial performance.
27
Internal control showed to positively moderate relationship between the relevance, accuracy, and
financial performance, at the same time, internal control no-showed an effect on the relationship
between verifiability, timeliness, and financial performance. The findings of the study suggested
that the management should establish better strategies to ensure the effectiveness and efficacy of
internal control. The effectiveness of the accounting information system also improves the
financial performance of companies.
(Uzrail and Bardai, 2019) conducted a study in Palestinian companies on whether the adoption of
Computerized Accounting Information Systems affects the financial performance of companies.
Satisfy user’s information needs, costs of CAIS adoption, Quality of accounting information
from CAIS were used for research as factors affecting financial performance. The findings of the
study revealed the adoption of Computerized Accounting Information Systems has a significant
relationship with the perceived financial performance. Furthermore, the efficiency of CAIS, the
reliability of CAIS, and staff training has a significant impact on the perceived financial
performance of the companies. The study concluded that management teams of all public listed
companies in Palestine would like to adopt CAIS to improve their financial performance. The
study suggested that the management of Palestinian companies should need to develop CAIS to
grow their financial performance.
(Ndalahwa, 2019) conducted a study in Arusha, Tanzania to identify the impact of Computerized
Accounting Systems on the financial performance of selected private companies. The findings of
the study pointed out that significantly impact the cost, management support, Technology,
personnel perception, business size, and infrastructure on the financial performance except for
the ease of use and external environment. But only cost and management support is the major
determinant for the adoption of the Computerized Accounting System. Therefore, the researcher
suggested that to improve the firm and financial performance of selected private companies in
Tanzania, the management should support endeavours to adopt cost-effective Computerized
Accounting Systems.
The study done by (Kashif, 2018) evaluated the impact of Accounting Information Systems on
the financial performance of selected FMCG companies in India. A self-administered
questionnaire designed on five point likert scale was used to collect data. Judgmental sampling
was applied and the sample size is 283 employees. The findings revealed that the Accounting
Information System significantly impacts the financial performance of selected FMCG
companies in India.
28
(Al-Dalaien and Khan, 2018) conducted a study in Jordan, on the impact of the Accounting
Information systems on the financial performance of selected real estate companies such as
Jordan International Investment Company (JIIC), Noor Capital, Real Estate Development
(RED), Ihdathiat Coordinates, and Afaq Holding. The findings of the study revealed that JIIC
has greatly benefitted from AIS but no impact of AIS was revealed in Ihdathiat Coordinates.
Therefore, they conclude that the impact of AIS on the financial performance of all except
Ihdathiat Coordinates.
Similar study conducted by (Borhan and Nafees, 2018) examined the impact of Accounting
Information Systems on the financial performance of selected real estate companies in Jordan.
The study used Speed, Work simplification, Quality information, and Information security as the
proxy measures of Accounting Information System, and Profitability and Market share as the
financial performance measures. Based on the findings the study revealed that the Accounting
Information Systems significantly impacted the financial performance of the Jordanian
companies.
(Akanbi and Adewoye, 2018) conducted a study to investigate the effects of Accounting
Information System adoption on the financial performance of Nigerian commercial banks. Based
on the findings revealed that there is a positive significant effect between AIS adoption and all
the performance indicators such as ROCE, ROTA, GPM, and NOP. Furthermore, the study
reveals that commercial banks in Nigeria are relatively more likely to adopt and use an
Accounting Information System to provide their services to their customers.
(Ndubuisi, Chidoziem, and Chinyere , 2017) conducted a comparative study in Nigeria between
a Computerized Accounting System and manual accounting system of quoted Microfinance
Banks from 2006-2015. The findings found that there is a positive effect between a
Computerized Accounting System and the reported profitability of banks than a manual
accounting system. Based on the findings, the study suggested that microfinance banks should
implement a Computerized Accounting System rather than a manual accounting system as it has
a significant positive effect on the bank's profitability.
Moreover, (Nizar, Ahmad, and Mohamad, 2016) conducted a study to find whether implemented
Accounting Information Systems in the private hospitals of the United Arab Emirates affect
financial and management performance. The findings from the study revealed that accounting
information systems in the United Arab Emirates private hospitals provide information to meet
the requirements of the financial and management performance function.
29
2.6 Summery of Literature Review
This chapter has dealt with the contribution of other authors towards the understanding of the
concepts and phenomenon of computerized accounting and financial performance. Significantly,
this includes the computerized aspect of accounting, the role of computerized accounting in
financial performance, the relationship between computerized accounting and financial
performance, factors affecting CAS adoption, the role of computerized accounting in financial
reporting, and internal control and related theories. By examining this literature the researcher
found the gap in them.
2.7 Research gaps
Enormous research has been done in the area of Computerized Accounting System in the past.
Most of the studies revealed that Computerized Accounting System have a significant positive
impact in accounting information quality, organisational effectiveness, managerial performance,
customer satisfaction, ownership and timeliness, data quality, firm performance and profitability,
corporate governance, and social responsibility. On the contrary, few studies critically examined
Computerized Accounting System and revealed that some factors have no significant effect on
financial reporting, management performance, and organizational profitability. The review of
literature has given an insight into both positive and negative aspects of Computerized
Accounting System.
Most of the studies have been carried out in international as well as national scenarios have
covered almost all possible aspects of Computerized Accounting System but the studies
conducted on Sri Lankan context are very few in analytical framework. There is still a gap for
studying the various factors of Computerized Accounting System with the financial
performance, which have not been covered by earlier authors. Notwithstanding, it was observed
that most of the studies were done with organizational performance and adoption of CAS.
Moreover, in Sri Lankan context, the researcher could not identify even a single study on
Computerized Accounting System and financial performance of hotel industry. The present
study differs from the earlier studies since it examines the impact of Computerized Accounting
System on financial performance of the hotel industry in Northern Province of Sri Lanka.
30
CHAPTER THREE: METHODOLOGY AND CONCEPTUALIZATION
3.1. Introduction
The study has been completed by following a number of phases and stages which are outlined in
this chapter. The plan consisted of data assembling, measurement, and evaluation. At this stage,
most decisions about how the research was executed and how the respondents were approached,
as well as when, where, and how the research was completed are well emphasized.
Consequently, in this section, the research identified the procedures and techniques that were
used in the data collection, processing, and analysis. In particular, the following subsections were
included; research design, target population, sampling design, data collection instruments, data
collection procedures, data analysis, conceptualization, operationalization and Hypotheses.
3.2. Area of the Study
The study area was the Northern Province of Sri Lanka, whereby members of staff who dealt
with the accounting information through the Computerized Accounting System in hotels in the
Northern Province were surveyed. This area was chosen because the Northern Province is one of
the most popular tourist destinations in Sri Lanka and the number of hotels is increasing.
3.3. Research Design
A research design provides relevant information that can address research questions effectively
and efficiently (Ahmad, 2012). Descriptive data were used to answer the research questions on
the effects of computerized accounting systems on the financial performance of hotels in
Northern Province, Sri Lanka. Descriptive data also explained the relationship between the
components affecting the computerized accounting system and the financial performance of
hotels in Northern Province of Sri Lanka.
The independent variable was tested individually to see whether each variable is responsible for
changes in the dependent variable. Therefore, the study used a descriptive research design. The
descriptive research design was used to describe the characteristics of existing phenomenon and
for obtaining information in the area of research on effects of Computerized Accounting System
and financial performance of hotels in Northern Province of Sri Lanka. The descriptive research
design was useful because it significantly describes the variables of interest by analyzing their
relationships and it provides valuable and appropriate answers to the research questions (Kombo
and Tromp, 2006). Descriptive research makes use of six W’s (who, what, when, where, why,
how) of research (Gupta and Rangi, 2014). A descriptive study was therefore deemed as the most
31
suitable in gathering information on components influencing computerized accounting system
and financial performance of hotels in Northern Province of Sri Lanka.
3.4. Target Population of the Study
The Target population refers to the entire group of individuals or objects to which a researcher is
interested in generalizing the results of the study and having the same observable characteristics
(Mugenda and Mugenda, 2008). Further, target population is the number of a real or hypothetical
set of people, events, or studies that a researcher would like to generalize. According to (Kombo
and Tromp, 2006), target population is the set of elements that a researcher focuses upon and to
which the results obtained by testing the sample should be generalized.
The target population for this study was 60 respondents from 11 hotels, and this consisted of
owners, managers, accountants, accounts assistants, and internal auditors who are working in
hotels that use a computerized accounting system in the Northern Province of Sri Lanka. The
study population is illustrated in the table below;
Table 3.1 Study Population
Category
Population
Owners
5
Managers
28
Accountants
11
Accounts Assistants
13
Internal Auditors
3
Source: Research Data (2021)
3.5. Sampling Design and Procedure
Sampling is the process of selecting units from a population of interest to participate in a study.
The individuals selected for the study are selected in such a way that they represent the entire
population. According to Kothari (2012), a sample consists of the selected respondents who
represent the entire population.
However, this study adopted the total population sampling. According to ( Lavrakas, 2008) total
population sampling is a type of purposive sampling where the whole population of interest is
studied. It is most practical when the total population is of manageable sizes. It also eliminates
the risk of biased sample selection that is often encountered in would-be random study samples.
32
Therefore, the sample size of the study was 60 respondents (entire population) those who directly
use accounting software and those who use the information obtained through accounting
software in their daily activities.
3.6. Data Collection Procedures
This study used primary data in this analysis. Primary data entails first-hand data that has not
been published or documented in books or any other form of publication. Questionnaires were
preferred due to them being able to provide first-hand information that has not been altered, at
the shortest time possible while still maintaining the anonymity of the respondents. Therefore the
data was collected through an electronic survey via Google Form questionnaire. The
questionnaire was constructed on a five-point Likert scale and administered among the
employees working in selected hotels. The questionnaire was divided into three sections A, B, C.
Section A aims to measure the personal information of the respondents, which includes age,
gender, education, designation, and experience in order to get the overall background of the
respondents. However, section B contains statements regarding the measures of the
Computerized Accounting System. It contains 32 statements that measure eight types of
variables namely; Perceives Usefulness, Perceived Ease of Use, Internal Control, Quality
Information, Speed, Perceived Cost, and Competent Computerized Accounting System, and
section C comprises statements to measure the financial performance of the hotels in Northern
Province of Sri Lanka. The necessary instructions or responses to the questions have been given
at the beginning of the questionnaire, which helps in facilitating the answering and ensure
completeness in filling the questionnaire properly by respondents.
Validity and Reliability of the Instrument
The validity of a questionnaire refers to the extent to which it measures what it claims to measure
(Mugenda and Mugenda, 2008). In testing validity, the researcher prepared questionnaires and
presented them to the supervisor for scrutiny and suggestion on the relevance, clarity, and
suitability of the information. The supervisor then made suggestions that were incorporated into
the final draft.
Reliability ensures the accuracy or consistency of the instrument, that is, the extent to which the
results remain similar over different forms of the same instruments (McMillan and Schumacher,
1993). The Cronbach alpha coefficient was employed to test for the reliability of instruments.
33
3.7. Data Processing and Analysis
The collected data were analysed using descriptive and inferential statistics. Descriptive statistics
such as mean, mode, standard deviation and frequency distribution were used to analyse the data.
Data presentation was done by the use of pie charts, bar graphs, percentages and frequency
tables.
Inferential statistics were produced to establish the relationship between the Independent
Variables and the Dependent Variable. Using inferential statistics, the study established a model
to estimate dependent variable (financial performance of hotels in Northern Province, Sri Lanka)
in terms of the independent variable (Perceived Usefulness, Perceived ease of use, Internal
Control, Quality Information, Speed, Perceived Cost, and Competent Computerized Accounting
System) based on the model shown below;
Y = β0+ β1X1 + β2X2 +β3 X3 + β4 X4 + β5X5 + β6X6 +β7 X7 + ℮…………. (i)
Where:
Y = Financial performance of Hotels in Northern Province, Sri Lanka (FP)
X1 = Perceived Usefulness (PU)
X2 = Perceived Ease of Use (PEoU)
X3 = Internal Control (IC)
X4 = Quality Information (QI)
X5 = Speed (SP)
X6 = Perceived Cost (PC)
X7 = Competent Computerized Accounting System (CCAS)
β0 is a constant (which is the value of the DV when all the IV are 0)
β 1-7 is the regression coefficients or change induced by X1, X2, X3, X4, X5, X6 and X7
℮ = error term
The study used the mean of means to obtain each study variable, by first obtaining the mean of
the indicators measuring a variable for each record. The mean obtained represented that variable
for that record. The final value of the variable was obtained by calculating the mean of all the
34
means obtained for that variable. The study then correlated each of the Independent Variable
(IV); Perceived Usefulness, Perceived ease of use, Internal Control, Quality Information, Speed,
Perceived Cost, and Competent Computerized Accounting System, to the Dependent Variable
(DV); Financial Performance of hotels in Northern Province of Sri Lanka, to establish whether
there was any relationship. Thereafter, to successfully estimate the model, the study obtained a
mean for each of the study variable; Perceived Usefulness, Perceived ease of use, Internal
Control, Quality Information, Speed, Perceived Cost, and Competent Computerized Accounting
System and financial performance of hotels in Northern Province of Sri Lanka using weighted
least square. The means obtained for all the independent variables; Perceived Usefulness,
Perceived ease of use, Internal Control, Quality Information, Speed, Perceived Cost, and
Competent Computerized Accounting System, were regressed against the mean obtained for
dependent variable; financial performance of hotels in Northern Province of Sri Lanka.
During the estimation of the study model, the study used Analysis of Variance (ANOVA) to test
the hypotheses, using Pearson’s product method. The study used Pearson’s product method at
0.05 level of significance (p-value <=.05). Various interpretations were also made based on
regression results to establish the significance, at the 95% confidence level of the independent
variables in determining the dependent variable. The Statistical Package for Social Sciences
(SPSS) software version 20.0 was used to analyse the data.
3.8. Conceptual Framework
Figure 3.1shows the conceptual framework of the research. This framework is a study in
determining the impact of the Computerized Accounting System on the financial performance of
selected hotels in the Northern Province of Sri Lanka. The Computerized Accounting System is
the independent variable whereas financial performance is the dependent variable. Perceived
Usefulness, Perceived ease of use, Internal Control, Quality Information, Speed, Perceived Cost,
and Competent Computerized Accounting System are used as the proxy measures of
Computerized Accounting System. However, profits, sales margin, sales turnover, and cash flow
are used as the proxy measures of financial performance.
35
Figure 3.1Conceptual Framework
Independent Variable (IV)
Computerized Accounting
System
Perceived Usefulness (PU)
Perceived Ease of Use (PEoU)
Internal Control (IC)
Quality Information (QI)
Speed (SP)
Dependent Variable (DV)
Financial Performance
(FP)




Profits
Sales Margin
Sales Turnover
Cash Flow
Perceived Cost (PC)
Competent CAS (CCAS)
Source: Designed by the Researcher
3.9. Operationalization of study variables
Operationalization of the study variables is important as it facilitates the measurement of the
variables qualitatively and thus enabling the testing of the study hypothesis. The study variables
comprise Perceived Usefulness, Perceived ease of use, Internal Control, Quality Information,
Speed, Perceived Cost, and Competent Computerized Accounting System which are independent
variables and financial performance which is the dependent variable. Table 3.2 shows the
summary of the operationalization of study variables.
36
Table 3.2 Operationalization framework
Concept
Variables
Indicators
Related
studies
Measures
Independent Variable (IV)
Computerize
Perceived
Fast,
Free CAS is very fast in computing (Akanbi and
d Accounting Usefulness
from error, transactions compare to manual- Adewoye,
System
Automated,
method
Versatility
Using CAS minimize errors and 1989;
(PU)
(CAS)
2018; Davis,
Kashif,
mistakes
CAS improves the quality of the 2018; Jusoh,
et al,, 2018)
work done
Employees
enjoy
a
high
efficiency in dealing with the
CAS
CAS software are tailor-made,
which are made to undergo
automated job
Perceived
Technical
Learning and using of CAS is (Akanbi and
ease of use know-how,
not complicated
(PEoU)
Transaction
I feel that no need much mental 2018; Jusoh,
posting
efforts to interact with CAS
Easy
Accounting
understandi
posting transactions to the ledger 2019;
ng
and double entry are simplified
functions
Adewoye,
et al., 2018;
like Ndalahwa,
Munasinghe
I feel that it is easy to do , 2015)
difficult task by using CAS
Internal
Access
Control (IC)
control
Security
control
Accuracy
checks
Audit trails
CAS
is
protected
from (Itang,
, intrusions, information theft, and 2020)
data manipulation
, CAS checks and confirms the
accuracy of data entered in the
, systems
Authorized
employees
are
allowed to access into data for
37
addition or deletion or making
the necessary modifications
Auditing
of
the
financial
statement is ease with the use of
CAS
Quality
Validity,
I
feel
that
CAS
provides (Al-
Information
Credibility,
accurate information
(QI)
Reliability,
I feel that CAS provides valid al.,
Accurate
information
Rashdan, et
Al-Dalaien
I feel that CAS makes the and
adequate Kashif,
provides
2018; Mohd
information at right time
We
are
able
make ,
to
2017)
through the CAS
provides
information
2012;
information Alnajjar,
understandable
CAS
Khan,
2018;
information more credible
CAS
2020;
reliable
and
gives
opportunity to user to improve
their works
Speed (SP)
Saving
CAS makes the communication (Borhan
time,
easier among department
Timelines,
We are able to reduce time spent 2018;
Integrated
on transaction through the CAS
&
Bader,
Kashif,
CAS made an integration and 2018;
Al-
consistency among department Dalaien and
Khan, 2018)
faster
Speed of processing accounting
information
is
improved
by
using accounting software
CAS helps the management to
take timely decisions
Perceived
Hardware
Acquiring CAS is less costly (Kemei and
Cost (PC)
and
compare to it usage
Mweberi,
38
software
On-going
usage
cost
cost,
upgrade cost of CAS is generally Ndalahwa,
Maintenanc
low compare to its usage
2019;
e cost
CAS reduce operating cost
Uzrail,2019)
Competent
Point of
Using CAS more competent in (Kemei and
Computerize
Sale (POS)
the
organization
and 2018;
through Mweberi,
d Accounting interface.
improve financial performance
System
Concurrent
CAS can interface with Point of et al., 2018)
(CCAS)
access ,
Sales (POS) devices
Seamless
We can easily make documents
reporting
like
purchase
orders,
2018; Jusoh,
sales
invoices, and others by using
CAS
I feel that accounting software
applies the right accounting
principles,
procedure
and
standards
CAS contribute to make the
information
outputs
more
suitable for decision-makers
Dependent Variable (DV)
Financial
Financial
Profits,
Hotel has been generating net (Al-
Performance
Performance
Sales
profits in an increasing rate for Rashdan, et
(FP)
(FP)
Margin,
recent years
Sales
I strongly feel that operating Al-Dalaien
Turnover,
profit for the hotel has been and
Cash Flow
increasing over last 5 years
Business
al.,
turnover
significantly
has
2020;
Khan,
2018;
been Velnampy
for and
increasing
recent years
Nimalathasa
Our hotel has been ploughing
n, 2010)
back retained earnings
every year
Sales
margins
have
been
39
increasing year by year
The liquidity of the hotel's assets
has increased
Hotel has been reporting net
cash flow increasing for year by
year
Hotel’s asset base has greatly
increased over time
Assets of the hotel are fully
utilized with efficiency
Business has the ability to settle
short-term loans/credits
I strongly feel that our hotel
maintains
better
inventory
management
Our hotel always achieves its
target profit
Source: Designed by the Researcher
3.10. Study Hypotheses
Emerging from the conceptual framework in figure 3.1, the following hypotheses of the
relationship in the study was formulated:
H1:
There is a significant relationship between Computerized Accounting System (CAS)
and Financial Performance (FP) of hotel in Northern Province of Sri Lanka.
H1a: There is a significant relationship between Perceived Usefulness (PU) and financial
performance (FP)
H1b: There is a significant relationship between Perceived Ease of Use (PEoU) and
financial performance (FP)
H1c: There is a significant relationship between Internal Control (IC) and financial
performance (FP)
H1d: There is a significant relationship between Quality Information (QI) and financial
performance (FP)
40
H1e: There is a significant relationship between Speed (SP) and financial performance
(FP)
H1f: There is a significant relationship between Perceived cost (PC) and financial
performance (FP)
H1g: There is a significant relationship between Competent Computerized Accounting
System (CCAS) and financial performance (FP)
H2:
The Computerized Accounting System (CAS) has significant impact on financial
performance (FP) of hotel in Northern Province of Sri Lanka.
H2a: The Perceived Usefulness (PU) has significant impact on financial performance
(FP)
H2b: The Perceived Ease of Use (PEoU) has significant impact on financial performance
(FP)
H2c: The Internal Control (IC) has significant impact on financial performance (FP)
H2d: The Quality Information (QI) has significant impact on financial performance (FP)
H2e: The Speed (SP) of CAS has significant impact on financial performance (FP)
H2f: The Perceived cost (PC) has significant impact on financial performance (FP)
H2g: The Competent Computerized Accounting System (CCAS) has significant impact
on financial performance (FP)
3.11. Chapter Summary
In this chapter, the research methodology followed to achieve on acceptable result is discussed.
The identification and definition of the target population in terms of the objectives of study is
represented. Further, sample selection procedures and analysis techniques are presented in detail.
Data analysis is done by using SPSS 20.
41
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.1. Introduction
This chapter presents the analysis and discusses the results as per the methodology explained in
chapter three. Section 4.2 presents reliability test results, section 4.3 & 4.4 gives the respondents
profile analysis, section 4.5 presents descriptive analysis, section 4.6 presents diagnostics test
result, section 4.7 presents the study analysis result, section 4.8 presents the summary of
hypotheses test results, and section 4.9 gives summary of the chapter.
4.2. Data Reliability
The reliability is a measuring instrument to test consistency and stability of a set of scale items
(Sekaran & Bougie, 2010). The Cronbach’s alpha is an adequate test of internal consistency and
reliability in almost all cases (Sekaran & Bougie, 2010), with the value between 0 and 1, but
should be at least 0.7 and a value closer to 1 indicates more reliable. Therefore, the study
conducted a reliability test to measure inter item correlation in each of the variables in the
questionnaire. As shown in Table 4.1, the Cronbach’s alpha values ranged from 0.710 to 0.900
which is showing acceptable level.
Table 4.1 Reliability test results for the study variables
Cronbach’s Alpha
No of Item
Perceived Usefulness (PU)
.803
5
Perceived Ease of Use (PEoU)
.728
4
Internal Control (IC)
.846
4
Quality Information (QI)
.736
6
Speed (SP)
.719
5
Perceived Cost (PC)
.741
3
Competent CAS (CCAS)
.805
5
Financial Performance (FP)
.900
12
Variable
Source: Output of SPSS_20
4.3 General Information
The study sought to find out the general characteristics of the respondents that included their
gender, marital status, age group, level of education, designation, and experience.
4.3.1 Gender of the Respondents
The study sought to find out the gender of the respondents. The findings are shown in Figure 4.1.
42
Figure 4.1 Gender of the respondents
Source: Research Data (2021)
The findings indicate that 82% of the respondents were male while 18% of the respondents were
female. This is to say that there was gender disparity in the hotels in the Northern Province of Sri
Lanka. The male were more than 2/3rd of the total population of the respondents and the female
were less than 1/3rd, showing gender disparity. This is an indication that most of the hotels were
operated by male.
4.3.2 Marital Status of the Respondents
The study sought to find out the marital status of the respondents. The findings are shown in
Figure 4.2.
Figure 4.2 Marital status of the respondents
Source: Research Data (2021)
43
The findings indicate that 72% of the respondents were married while 28% of the respondents
were single.
4.3.3 Age of the Respondents
The study sought to find out the age of the respondents. The findings are shown in figure 4.3.
Figure 4.3Age group of the respondents
Source: Research Data (2021)
The findings indicate that 22% of the respondents were aged less than 30 years, 42% were aged
31-40 years, 30% were aged 41-50 years, while 7% were aged more than 50 years. These results
therefore show that a large number of individuals aged between 31-40 years managed most
hotels in Northern Province.
4.3.4. Academic Qualification of Respondents
The study sought to find out the academic qualification of the respondents. The findings are
shown in figure 4.4.
The findings from figure 4.4 below shows that 3% of the respondents had G.C.E advanced level
qualification, 42% of the respondents had a diploma, 23% of the respondents had bachelor
degree, 17% of the respondents had a post-graduate diploma, and 15% the respondents had a
post-graduate degree but there were no respondents with others.
44
Figure 4.4 Academic qualifications of respondents
Source: Research Data (2021)
4.3.5. Designation of Respondents
The study sought to find out the current position of the respondents. The findings are shown in
figure 4.5.
Figure 4.5 Current positions of the respondents
Source: Research Data (2021)
The findings indicate that 47% of the respondents were Managers, 20% were Accounts
Assistants, 18% were Accountants, while 10% were Internal Auditors and 5% were Owners.
45
4.3.6. Experience of Respondents
The study sought to find out the experience of the respondents. The findings are shown below,
Figure 4.6 Work experience of respondents
Source: Research Data (2021)
The findings indicate that 47% of respondents had less than 5 years of work experience, 42% of
the respondents had 5-10 years of work experience, 7% of the respondents had 10-15 years of
work experience, and 5% of the respondents had more than 15 years of work experience.
4.4 Information about the Hotels in Northern Province
4.4.1. Number of employees in the hotels
The respondents were requested to provide information about the number of employees in their
hotels. The results are shown in figure 4.7.
As shown in figure 4.7 below, 55% of the selected hotels had between 11 to 50 employees, and
45% had more than 51 but below 300 employees.
In the Sri Lankan context, the SME policy framework defines companies with less than 10
employees as micro firms, companies with between 11 to 50 employees as small-sized
enterprises and companies with between 51 to 300 employees as medium-sized enterprises.
Therefore these findings indicated that 55% of the hotels were small-sized firms and other 45%
of the hotels were medium-sized firms selected for this study.
46
Figure 4.7 Number of employees in the hotels
Source: Research Data (2021)
4.4.2. Type of the Hotel
The respondents were requested to provide information about the type of their hotels. The results
are shown in figure 4.8
Figure 4.8 Type of the hotels
Source: Research Data (2021)
The findings from figure 4.4 shows that 45% of the selected hotels were taken for the study as 3
star hotels, 36% as hotel and restaurants and 18% as resorts.
47
4.4.3. Type of Business Organization
The respondents were requested to provide information about the type of their business
organization. The results are shown in figure 4.9.
Figure 4.9 Type of Business
Source: Research Data (2021)
As shown in figure 4.9, majority of the selected hotels (64%) indicated private limited as the
type of business organization and 36% indicated sole proprietor as the type of business
organization.
4.4.4. Departments/ Divisions of the hotels.
The respondents were requested to provide information about the departments/divisions in their
hotels. The results are shown in figure 4.10.
As shown in figure 4.10 below, all 11 hotels have front office, housekeeping, food and beverage,
accounts and finance, kitchen, and maintenance and engineering department, 7 hotels have
human resource department, and 3 hotels have sales and marketing department.
48
Figure 4.10 Departments/ Divisions of the hotels
Source: Research Data (2021)
4.4.5. Type of computerized accounting system used among the hotels.
The study also sought information on the type of accounting systems used by the hotels. The
results are presented in the table below.
Table 4.2Type of Computerized Accounting System used among the hotels
No
Software
Frequency
1
Tally
3
2
RMS
1
3
Scienter
2
4
Boost
1
5
SAP
1
6
SAPRO
1
7
KW Hotel
2
8
XERO
1
9
Developed Software
1
Source: Research Data (2021)
49
The findings above show that, 3 hotels use Tally for the purpose of accounting, 1 hotel uses
XERO for the purpose of restaurant management, and except which a hotel developed their own
software; other hotels for the purpose of management and accounting use RMS, Boost, Scienter,
SAP, KW Hotel, and SAPRO.
4.4.6. Years of Using Accounting Software
Further the study sought information on how long the hotels have been using the CAS. The
responses are presented in figure below,
Figure 4.11 Years of using Accounting Software
Source: Research Data (2021)
The study found that 54% of the hotels had been using CAS for more than 6 years, 23% of the
hotels had been using CAS for 4 to 6 years, 15% of the hotels had been using CAS for 2 to 4
years, and 5% of the hotels had been using CAS for less than 2 years.
4.5 Analysis of Study Variables
The study analysed the data collected using descriptive design to describe the study variables.
The analysis was based on the results obtained from data collected using the questionnaire,
where all the statements used in the questionnaire were addressing the objectives as well as the
financial performance of hotels as were measured on a 5 point Likert Scale (1-5). The study
obtained the mean (M) and standard deviation (SD) for each indicator of the Independent
Variable (IV) and the Dependant Variable (DV). Since the Mean would have fraction, the study
50
moderated the mean of the results to obtain the Statistics for the study variable, the scale as
shown below;
 1 - 1.8 implying “Strongly Disagree;
 Above 1.8 – 2.6 for “Disagree”;
 Above 2.6 - 3.4 to imply “Neutral”;
 Above 3.4 – 4.2 to imply “Agree” and
 Above 4.2 – 5.0 to imply “Strongly Agree”
4.5.1 Perceived Usefulness
The study asked the respondents to state the extent to which they agree with the following
statements relating to the perceived usefulness. The responses were rated on a five-point Likert
scale where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly disagree. The
mean and standard deviations were generated from SPSS and are indicated in the table below.
Table 4.3 Perceived Usefulness
Statements
Mean
Std.
Deviation
N
CAS is very fast in computing transactions compare to
manual-method
4.1333
.59565
60
Using CAS minimize errors and mistakes
4.0167
.46910
60
CAS improves the quality of the work done
4.1000
.54306
60
Employees enjoy a high efficiency in dealing with the CAS
3.7000
.49745
60
CAS software are tailor-made, which are made to undergo
automated job
4.3333
.57244
60
Total Mean Score
4.0567
Source: Output of SPSS_20
The findings in Table 4.3 show that the majority of the respondents strongly agreed with the
statement that CAS software is tailor-made, which are made to undergo automated jobs with
mean scores of 4.33. The other statements that CAS is very fast in computing transactions
compared to manual-method, Using CAS minimize errors and mistakes, CAS improves the
quality of the work done and Employees enjoy a high efficiency in dealing with the CAS the
majority of the respondents were agreed with mean scores of 4.13, 4.02, 4.1 and 3.7 respectively.
Averagely, all the respondents were in agreement with the statements of perceived usefulness
with mean score of 4.06.
51
4.5.2 Perceived Ease of Use
The study requested the respondents to state their level of agreement with the following
statements about the Perceived ease of use. The responses were rated on a five-point Likert scale
where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly disagree. The mean and
standard deviations were indicated in table 4.4.
Table 4.4 Perceived Ease of Use
Statements
Mean
Std.
Deviation
N
Learning and using of CAS is not complicated
3.5833
.49717
60
I feel that no need much mental efforts to interact with CAS.
3.3500
.48099
60
Accounting functions like posting transactions to the ledger
and double entry are simplified
4.1167
.41545
60
I feel that it is easy to do difficult task by using CAS
3.9000
.35415
60
Total Mean Score
3.7375
Source: Output of SPSS_20
The findings in Table 4.4 show that the most of the respondents neutrally agreed with the
statement that I feel that no need for much mental effort to interact with CAS with mean scores
of 3.35. The other statements that Accounting functions like posting transactions to the ledger
and double entry are simplified, I feel that it is easy to do the difficult task by using CAS, and
Learning and using CAS is not complicated the majority of the respondents were agreed with
mean scores of 4.12, 3.9, and 3.58 respectively. On average, all the respondents agreed with the
statements of perceived usefulness with mean score of 3.74.
4.5.3 Internal Control
The study also asked the respondents to state their level of agreement with the following
statements about Internal Control of the CAS. The responses were rated on a five-point Likert
scale where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly disagree. The
mean and standard deviations were indicated in the table 4.5
From the results in table 4.5 below, the respondents indicated that the majority of the
respondents agreed with all statements of Internal Control of CAS that, Auditing of the financial
statement is easy with the use of CAS, Authorized employees are allowed to access data for
addition or deletion or making the necessary modifications, CAS is protected from intrusions,
information theft, and data manipulation, and CAS checks and confirms the accuracy of data
52
entered in the systems; with mean scores of 4.05, 3.95, 3.93, and 3.83 respectively. On average,
the respondents agreed with the statements of Internal Control of CAS with the mean score of
3.94.
Table 4.5 Internal Control of CAS
Statements
CAS is protected from intrusions, information theft, and data
manipulation
CAS checks and confirms the accuracy of data entered in the
systems
Authorized employees are allowed to access into data for
addition or deletion or making the necessary modifications
Auditing of the financial statement is ease with the use of
CAS
Mean
Std.
Deviation
N
3.9333
.48246
60
3.8333
.52615
60
3.9500
.53441
60
4.0500
.62232
60
Total Mean Score
3.9417
Source: Output of SPSS_20
4.5.5 Quality Information
The study requested the respondents to state their level of agreement with the following
statements about the Quality Information. The responses were rated on a five-point Likert scale
where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly disagree. The mean and
standard deviations were indicated in table 4.6.
Table 4.6 Quality Information
Statements
Mean
Std.
Deviation
N
I feel that CAS provides accurate information
I feel that CAS provides valid information
I feel that CAS makes the information more credible
CAS provides adequate information at right time
We are able to make understandable information through the
CAS
CAS provides reliable information and gives opportunity to
user to improve their works
Total Mean Score
3.9167
4.0333
3.8000
3.9333
.38142
.36669
.48011
.40617
60
60
60
60
4.1667
.45721
60
3.9500
.56524
60
3.9667
Source: Output of SPSS_20
From the results in table 4.6, the respondents indicated that most of the respondents agreed with
all statements of Quality Information of CAS that, We are able to make understandable
information through the CAS, I feel that CAS provides valid information, CAS provides reliable
53
information and gives opportunity to user to improve their works, CAS provides adequate
information at right time, I feel that CAS provides accurate information, and I feel that CAS
makes the information more credible; with mean scores of 4.05, 3.95, 3.93, and 3.83
respectively. On Average, the respondents agreed with the statements of Quality information of
CAS with the mean scores of 3.97.
4.5.6 Speed
The respondents were requested to indicate the extent to which they agree to the following
statements explaining speed of CAS. The responses were rated on a five-point Likert scale
where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly disagree. The mean and
standard deviations were indicated in the table below.
Table 4.7 Speed
Statements
Mean
Std.
Deviation
N
CAS makes the communication easier among department
We are able to reduce time spent on transaction through the
CAS
CAS made an integration and consistency among department
faster
Speed of processing accounting information is improved by
using accounting software
CAS helps the management to take timely decisions
3.8167
.53652
60
4.0333
.31712
60
3.7167
.66617
60
3.9333
.25155
60
3.9500
.56524
60
Total Mean Score
3.8900
Source: Output of SPSS_20
The findings in Table 4.7 show that most of the respondents agreed with all statements of Speed
with a mean score of 3.89. The statements that, We are able to reduce time spent on transaction
through the CAS, CAS helps the management to take timely decisions, Speed of processing
accounting information is improved by using accounting software, CAS makes the
communication easier among department, and CAS made an integration and consistency among
department faster; with mean scores of 4.03, 3.95, 3.93, 3.81, and 3.72 respectively.
4.5.7 Perceived Cost
The study also asked the respondents to state their level of agreement with the following
statements about Perceived Cost of the CAS. The responses were rated on a five-point Likert
scale where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly disagree. The
mean and standard deviations were indicated in the table below
54
Table 4.8 Perceived Cost
Statements
Mean
Std.
Deviation
N
Acquiring CAS is less costly compare to it usage
On-going usage cost and upgrade cost of CAS is generally
low compare to its usage
CAS reduce operating cost
3.5333
.53573
60
3.4333
.64746
60
3.1333
.72408
60
Total Mean Score
3.3666
Source: Output of SPSS_20
The findings in Table 4.8 show that the majority of the respondents neutrally agreed with the
statement that CAS reduce operating cost with mean scores of 3.13. The other statements that,
On-going usage cost and upgrade cost of CAS is generally low compare to its usage, Acquiring
CAS is less costly compare to it usage the majority of the respondents were agreed with mean
scores of 3.43, and 3.53 respectively. Averagely, all the respondents neutrally agreed with the
statements of perceived cost with mean scores of 3.37.
4.5.8 Competent Computerized Accounting System
The study requested the respondents to state their level of agreement with the following
statements about the Competent Computerized Accounting System. The responses were rated on
a five-point Likert scale where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1= strongly
disagree. The mean and standard deviations were indicated in table 4.9.
Table 4.9 Competent Computerized Accounting System
Statements
Using CAS more competent in the organization through
improve financial performance
CAS can interface with Point of Sales (POS) devices
We can easily make documents like purchase orders, sales
invoices, and others by using CAS
I feel that accounting software applies the right accounting
principles, procedure and standards
CAS contribute to make the information outputs more
suitable for decision-makers
Total Mean Score
Mean
Std.
Deviation
N
3.6833
.46910
60
4.0833
.67124
60
4.1167
.73857
60
3.9167
.64550
60
3.8500
.44436
60
3.9300
Source: Output of SPSS_20
From the results in table 4.9, most of the respondents agreed with all statements of Competent
CAS with a total mean score of 3.93. The statements; We can easily make documents like
55
purchase orders, sales invoices, and others by using CAS (4.12), CAS can interface with Point of
Sales (POS) devices (4.08), I feel that accounting software applies the right accounting
principles, procedure, and standards (3.92), CAS contribute to make the information outputs
more suitable for decision-makers (3.85), and Using CAS more competent in the organization
through improve financial performance (3.38).
4.5.9 Financial Performance of hotels in Northern Province of Sri Lanka
Furthermore, the study requested the respondents to state their level of agreement with the
following statements about the financial performance of their hotels. The responses were rated
on a five-point Likert scale where: 5= strongly agree; 4= Agree; 3= neutral 2= Disagree 1=
strongly disagree. The mean and standard deviations are indicated in table 4.10.
Table 4.10 Financial Performance of the hotels in Northern Province of Sri Lanka
2.9333
Std.
Deviation
.68561
60
3.2333
.46456
60
3.2167
.45442
60
2.6500
.63313
60
3.1333
.53573
60
The liquidity of the hotel's assets has increased
3.0667
.54824
60
Hotel has been reporting net cash flow increasing for year by
year
Hotel’s asset base has greatly increased over time
3.1333
.53573
60
2.6000
.55845
60
Assets of the hotel are fully utilized with efficiency
3.0167
.59636
60
Business has the ability to settle short-term loans/credits
3.8000
.54617
60
I strongly feel that our hotel maintains better inventory
management
Our hotel always achieves its target profit
3.8667
.56648
60
3.2167
.69115
60
Statements
Mean
Hotel has been generating net profits in an increasing rate for
recent years
I strongly feel that operating profit for the hotel has been
increasing over last 5 years
Business turnover has been significantly increasing for
recent years
Our hotel has been ploughing back retained earnings every
year
Sales margins have been increasing year by year
Total Mean Score
N
3.1556
Source: Output of SPSS_20
From the findings, most of the respondents neutrally agreed with the statements that I strongly
feel that operating profit for the hotel has been increasing over last 5 years, Our hotel always
achieves its target profit, Business turnover has been significantly increasing for recent years,
56
Sales margins have been increasing year by year, Hotel has been reporting net cash flow
increasing for year by year, The liquidity of the hotel's assets has increased, Assets of the hotel
are fully utilized with efficiency, Hotel has been generating net profits in an increasing rate for
recent years, Our hotel has been ploughing back retained earnings every year, and Hotel’s asset
base has greatly increased over time with mean scores of 3.23, 3.22, 3.22, 3.13, 3.13, 3.07, 3.02,
2.93, 2.65 and 2.6 respectively. Majority of the respondents agreed with the statements that I
strongly feel that our hotel maintains better inventory management, and Business has the ability
to settle short-term loans/credits with the mean scores of 3.87 and 3.8 respectively. Averagely,
the respondents neutrally agreed with the statements of Financial Performance of hotels in
Northern Province of Sri Lanka with the mean score of 3.156.
4.6 Diagnostics testing
The study first tested the existence or absence of some errors and inconsistencies. This was done
in order to carry out a model estimate based on accurate data. Diagnostic tests carried out tested
for normality, multicollinearity, and autocorrelation.
4.6.1 Normality Tests
The study carried out a normality test to establish whether the data set was modelled for
normally distributed. Skewness and Kurtosis were used to test the normality. According to
(Doane and Seward, 2011), if the Z-value of skewness and Kurtosis is within ±1.96, the
distribution for this study is normal. Accordingly, the normality test results for all variables in
the model can be observed in Table 4.11.
Table 4.11 Normality Statistics
Variable
FP
Skewness
Std.
Skewness Error of
Skewness
.234
.309
Z-Value
Kurtosis
0.756
.422
Kurtosis
Std.
Error of
Kurtosis
.608
Z-Value
0.694
-.065
.309
-0.212
-.149
.608
-0.244
.331
.309
1.071
-.880
.608
-1.445
IC
-.031
.309
-0.100
-.330
.608
-0.542
QI
-.037
.309
-0.119
-.222
.608
-0.365
SP
-.314
.309
-1.017
-.615
.608
-1.011
PC
-.394
.309
-1.278
-1.183
.608
-1.945
CCAS
-.020
.309
-0.064
-.489
.608
-0.804
PU
PEoU
Source: Output of SPSS_20
57
The above table 4.11 presented the results of the normality test stats of skewness and kurtosis
with Z-value. The Z-value was calculated by dividing the statistic and the standard error values
of the skewness’ and kurtosis. For normally distributed data the Z values should be -1.96 to
+1.96. The variable's results were within the range. This means the data was normally
distributed.
4.6.2 Multicollinearity Tests
Multicollinearity refers to there is similarity between the independent variables in a model.
Similarities between the independent variables lead to a very strong correlation. Tolerance and
Variance Inflation Factor (VIF) are two commonly used measures of the strength of the
interrelationships among the variables. If the Variance Inflation Factor (VIF) is greater than 10
and Tolerance is less than 0.1, it indicates that multicollinearity exists among the variables. The
results obtained were shown in Table 4.12 below.
Table 4.12 Multicollinearity Test
Model
Collinearity Statistics
Tolerance
VIF
PU
.915
1.093
PEoU
.797
1.255
IC
.836
1.197
QI
.904
1.106
SP
.900
1.111
PC
.944
1.060
CCAS
.875
1.142
Source: Output of SPSS_20
According to the results in the above table 4.12, it shows that the VIF for all the independent
variables individually was less than 10, and the tolerance for all predictor variables was greater
than 0.1 or 10%. Therefore, the study concluded that there was no multi-collinearity among the
variables.
4.6.3 Autocorrelation Assumptions Tests
The study tested for the autocorrelation assumptions that imply zero covariance of error terms
over time. That means errors associated with one observation are uncorrelated with the errors of
any other observation. The study used the Durbin Watson test for detecting serial correlation. If
58
the test value is between 1.5 and 2.5, it indicates that there is no autocorrelation problem between
the data items. From the result given in Table 4.13 below, the Durbin-Watson was 2.278, which
was between 1.5 and 2.5, indicating that there were no autocorrelation problems between the
data set.
Table 4.13 Autocorrelation Assumptions Test
Durbin-Watson
2.278
a. Predictors: (Constant), CCAS, SP, QI, PC, IC, PEoU, PU
b. Dependent Variable: FP
Source: Output of SPSS_20
4.7 Model Fitting
The study sought to establish whether the independent variables as Perceived Usefulness,
Perceived ease of use, Internal Control, Quality Information, Speed, Perceived Cost, and
Competent Computerized Accounting System were impacting the dependent variable as the
financial performance of hotels in Northern Province of Sri Lanka. The study first tested for the
existence of a significant relationship between the Independent Variables and the Dependent
Variable using correlation and thereafter carried out multiple regressions for estimating the
model that would explain the financial performance of hotels in the Northern Province of Sri
Lanka, in terms of; Perceived Usefulness, Perceived ease of use, Internal Control, Quality
Information, Speed, Perceived Cost, and Competent Computerized Accounting System.
4.7.1 Correlation Analysis
The study first carried out a correlation analysis on the study variables to establish whether there
existed any significant relationship between the financial performance of hotels in the Northern
Province of Sri Lanka and the; Perceived Usefulness, Perceived ease of use, Internal Control,
Quality Information, Speed, Perceived Cost, and Competent Computerized Accounting System.
This is where the study sought to establish whether there was a statistically significant
relationship between the study Dependent Variable and each of the Independent Variables, using
Pearson’s product-moment correlation. The results obtained were given in Table 4.14.
The results in table 4.14 below, showed that the Perceived Usefulness (r=0.345, ρ<0.05), and the
Quality Information (r=0.333, ρ<0.05) were positively and significantly correlated with financial
performance at a moderate level, and the Perceived Ease of Use (r=-0.258, ρ<0.05) was
negatively and significantly correlated with financial performance at a moderate level. Other
variables that Internal Control (r=-0.147, ρ>0.05), Perceived Cost (r=-0.106, ρ>0.05), and
59
Competent Computerized Accounting System (r=-0.128, ρ>0.05), were negatively weak
correlated and Speed of Computerized Accounting System (r=0.035, ρ>0.05) was positively
weak correlated with financial performance but not statistically significant.
Table 4.14 Correlation Analysis
Variables
FP
PU
Pearson
Correlation
FP
PU
PEoU
IC
QI
SP
PC
CCAS
1
Sig. (2tailed)
PEoU
IC
.345**
-.258*
-.147
.333**
QI
.035
SP
-.106
PC
-.128
.007
.047
.262
.009
.793
.421
.331
1
.011
-.107
.238
.029
.127
.053
.933
.414
.067
.826
.335
.690
1
.313*
-.039
-.198
-.153
.272*
.015
.769
.129
.242
.036
1
.013
.120
-.160
.161
.924
.360
.223
.220
1
.107
.051
.153
.415
.700
.244
1
.011
-.132
.936
.313
1
-.107
Pearson
Correlation
.345**
Sig. (2tailed)
.007
Pearson
Correlation
-.258*
.011
Sig. (2tailed)
.047
.933
Pearson
Correlation
-.147
-.107
.313*
Sig. (2tailed)
.262
.414
.015
Pearson
Correlation
.333**
.238
-.039
.013
Sig. (2tailed)
.009
.067
.769
.924
Pearson
Correlation
.035
.029
-.198
.120
.107
Sig. (2tailed)
.793
.826
.129
.360
.415
Pearson
Correlation
-.106
.127
-.153
-.160
.051
.011
Sig. (2tailed)
.421
.335
.242
.223
.700
.936
Pearson
Correlation
-.128
.053
.272*
.161
.153
-.132
-.107
Sig. (2tailed)
.331
.690
.036
.220
.244
.313
.414
CCAS
.414
1
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Source: Output of SPSS_20
To test the study hypotheses, the study made interpretations to test the relationship between the
dependent variable and the independent variables using the study results in Table 4.14 above.
The tested the hypotheses as; The Perceived Usefulness and Quality Information had positively
significant relationship on financial performance and Perceived Ease of Use had negatively
60
significant relationship on financial performance as their p-values were all below the standard
significance level of 0.05. As such, hypotheses H1a, H1b, and H1d were supported. Conversely,
the significant relationship of Internal Control, Speed, Perceived Cost, and Competent
Computerized Accounting System could not be supported as their p-values were all above the
standard significance level of 0.05. Hence, hypotheses H1c, H1e, H1f, and H1g were rejected.
4.7.2 Regression Analysis
The regression model was used during the study to test the magnitude to which Perceived
Usefulness, Perceived ease of use, Internal Control, Quality Information, Speed, Perceived Cost,
and Competent Computerized Accounting System impact the financial performance of hotels in
Northern Province of Sri Lanka. The table below presents the results of the regression models
summary.
Table 4.15 Model Summary
R
R Square
Adjusted R
Square
Std. Error of the
Estimate
Durbin-Watson
.559a
0.313
0.22
0.34919
2.278
a. Predictors: (Constant), CCAS, SP, QI, PC, IC, PEoU, PU
b. Dependent Variable: FP
Source: Output of SPSS_20
According to these results, the coefficient of determination was 0.22, which indicates that 22%
of the change in variation in the financial performance of hotels in the Northern Province of Sri
Lanka is explained by; Perceived Usefulness, Perceived ease of use, Internal Control, Quality
Information, Speed, Perceived Cost, and Competent Computerized Accounting System. This
shows an average prediction rate.
4.7.3 Analysis of Variance
The study sought to test the goodness of fits of the model (whether the model is fit), using
ANOVA, producing the results in table 4.16.
Table 4.16 Analysis of Variance (ANOVA)
Model
Sum of Squares
df
Mean Square
Regression
2.888
7
0.413
Residual
6.341
52
0.122
Total
9.229
59
F
Sig.
3.384
.005b
a. Dependent Variable: FP
b. Predictors: (Constant), CCAS, SP, QI, PC, IC, PEoU, PU
Source: Output of SPSS_20
61
According to the results obtained in Table 4.16, the P-value (0.005) is less than 0.05 significance
level an indication that the model was statistically significance hence, the model is a good fit.
4.7.4 Regression Model Coefficients
The coefficients of the regression model are illustrated in the table below.
Table 4.17 Regression Coefficients
Model
Unstandardized
Standardized
Coefficients
Coefficients
B
(Constant)
Std. Error
3.328
1.456
.412
.159
PEoU
-.300
IC
t
Sig.
Beta
2.286
.026
.311
2.586
.013
.160
-.242
-1.880
.066
-.052
.145
-.045
-.358
.722
QI
.401
.166
.291
2.408
.020
SP
-.088
.163
-.065
-.540
.592
PC
-.169
.091
-.219
-1.854
.069
CCAS
-.285
.237
-.148
-1.203
.235
PU
a. Dependent Variable: FP
Source: Output of SPSS_20
The results from table 4.17 were used to formulate the regression model of the study as discussed
in chapter three. The regression equation is:
FP=3.328 + 0.412X1 - 0.300X2 - 0.052X3 + 0.401X4 - 0.088X5 – 0.169X6 – 0.285X7
The equation above inferred that financial performance was influenced by Perceived Usefulness,
Perceived ease of use, Internal Control, Quality Information, Speed, Perceived Cost, and
Competent Computerized Accounting System. Given all the predictor variables constant at zero
(0), the financial performance will be 3.328.
Further, the model shows that putting all other predictor variables at zero, a unit increase in
Perceived Usefulness will lead to a 0.412 increase in financial performance and vice versa, a unit
increase in Perceived ease of use will lead to an 0.300 decrease in financial performance and vice
versa, a unit increase in Internal Control will lead to a 0.052 decrease in financial performance
and vice versa all else constant. A unit increase in Quality Information will lead to a 0.401
increase in financial performance and vice versa, and a unit increase in Speed, Perceived Cost,
62
and Competent Computerized Accounting System will lead to decrease in financial performance
as 0.088, 0.169 and 0.285 respectively.
Using the study results in table 4.17, to test the study hypotheses, the study made interpretations
seeking to establish the nature of the significance of the independent variables in determining the
dependent variable. The hypotheses were thus tested; The Perceived Usefulness and Quality
Information on financial performance were positively significant as their p-values were all below
the standard significance level of 0.05. As such, hypotheses H2a and H2d were supported.
Conversely, the significant effect of Perceived Ease of Use, Internal Control, Speed, Perceived
Cost, and Competent Computerized Accounting System could not be supported as their p-values
were all above the standard significance level of 0.05. Hence, hypotheses H2b, H2c, H2e, H2f,
and H2g were rejected.
4.8 Summary of Hypotheses Test
The summary of the hypotheses test results is shown in table 4.18 below.
Table 4.18 Summary of Hypotheses Test
Hypotheses
H1a:There is a significant relationship between
Perceived Usefulness and financial performance
H1b:There is a significant relationship between
Perceived Ease of Use and financial performance
H1c:There is a significant relationship between Internal
Control and financial performance
H1d:There is a significant relationship between Quality
Information and financial performance
H1e:There is a significant relationship between Speed
and financial performance
H1f:There
is
a
significant
relationship
between
Perceived cost and financial performance
Analytical Tool
Results
Correlation
Supported
Correlation
Supported
Correlation
Rejected
Correlation
Supported
Correlation
Rejected
Correlation
Rejected
Correlation
Rejected
Regression
Supported
H1g:There is a significant relationship between
Competent Computerized Accounting System and
financial performance
H2a:The Perceived Usefulness has significant impact
on financial performance
63
H2b:The Perceived Ease of Use has significant impact
on financial performance
H2c:The Internal Control has significant impact on
financial performance
H2d:The Quality Information has significant impact on
financial performance
H2e:The Speed of CAS has significant impact on
financial performance
H2f:The Perceived cost has significant impact on
financial performance
H2g:The Competent Computerized Accounting System
has significant impact on financial performance
Regression
Rejected
Regression
Rejected
Regression
Supported
Regression
Rejected
Regression
Rejected
Regression
Rejected
Source: Research Data, 2021
4.9 Chapter Summary
The chapter was presented the demographic profile like gender, age, education, designation, the
experience of the respondents, and information about the hotels like the type of hotels, type of
business, and type of accounting package. Further, the chapter was highlighted the mean and
standard deviation of all variables and all statements, the value of Cronbach alpha of all variables
has tested the reliability. Finally, this chapter has presented and attempted to prove the
hypotheses covered in the study. Therefore, Pearson’s correlation and Multiple-regression model
were used to test the hypotheses and the entire hypotheses were confirmed.
64
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
From the analysis of the data collected the following summary, conclusion and recommendations
were made. The responses were based on the objectives of the study. The researcher had
intended to determine the effect of Computerized accounting system on financial performance of
hotels in Northern Province of Sri Lanka.
5.2 Summary of Study Findings
The study findings were summarized based on the research objectives, which were to; (1)
establish the effects of Computerized Accounting Systems on the financial performance of hotels
in the Northern Province of Sri Lanka, (2) to explore the relationship between CAS factors and
Financial Performance of hotels in the Northern Province of Sri Lanka.
The primary data was collected with the help of a well-structured questionnaire prepared on fivepoint Likert scale from 60 respondents working in eleven selected hotels in the Northern
Province of Sri Lanka. The questionnaire contains 44 statements which measure eight variables
namely Perceived Usefulness, Perceived ease of use, Internal Control, Quality Information,
Speed, Perceived Cost, Competent Computerized Accounting System, and Financial
Performance. Correlation analysis and multiple regression analysis were used to analyse the
objective of this study.
Correlation analysis indicated that there is a significant positive moderate relationship between
PU and FP at 0.05 significant level. This finding supported the research of (Kemei and Mweberi,
2018). Similarly indicated that there is a significant positive moderate relationship between QI
and FP at 0.05 significant level. It corroborates the findings of (Al-Dalaien and Khan, 2018) And
there is a significant negative relationship between PEoU and FP at 0.05 significant level This
finding not supported the study of (Ndalahwa, 2019).
It is also found that there is an insignificant positive weak relationship between SP and FP at
0.05 significant level. This finding not supported the study of (Borhan and Nafees, 2018). And
researcher found that there is an insignificant negative weak relationship between IC and FP at
0.05 significant level. Similarly, there is an insignificant negative weak relationship between PC
and FP at 0.05 significant level. Moreover, researcher found that there is an insignificant
negative weak relationship between CCAS and FP. It does not corroborate the findings of
(Kemei and Mweberi, 2018)
65
The regression analysis indicated that PU and QI have a significant positive impact on FP, but
PEoU, IC, SP, PC, and CCAS have an insignificant negative impact on FP.
Even though, overall findings show that the independent variables (PU, PEoU, IC, QI, SP, PC,
and CCAS) contributed to 22% (Adjusted R square - 0.22) of the variation in the financial
performance of hotels in the Northern Province of Sri Lanka. Other 78% of variations in
financial performance are accounted for by variations in other variables.
5.3 Conclusion and Recommendation
The main purpose of the study is to empirically examine the impact of CAS on the financial
performance of hotels in the Northern Province of Sri Lanka. As per the objectives, the
regression analysis has been performed. The results indicated that PU and QI of computerized
accounting systems moderately affect the financial performance of hotels in the Northern
Province of Sri Lanka, but PEoU, IC, SP, PC, and CCAS not significantly impact the financial
performance of hotels in the Northern Province of Sri Lanka. Moreover, the regression model for
the financial performance is presented in table 4.15 that results indicate that the value of adjusted
R square is 0.22. This means 22% of the variation in the dependent variable can be explained by
this model.
Therefore, it can be concluded that CAS is among the essential factors required for the
improvement of the financial performance of hotels in the Northern Province of Sri Lanka. Thus,
the improvement of the financial performance of hotels in the Northern Province requires
appropriate and effective CAS. Such systems should be capable of producing quality
Information, produce the desired information on demand, and should always be up to date, be
managed by competent accounting personnel possessing adequate knowledge in ICT, be an
integration system and always produce accurate results. Thus, the hotels should be adopted wellintegrated customized Computerized Accounting systems for enhances their performance.
Finally, this study can help accountants and business owners understand the connection between
technology acceptance and the use of CAS, which can help them succeed in their business,
especially in hotels.
5.4 Suggestions for Further Research
During the course of this study, several ideas and potential research areas have been identified.
The purpose of this section is to serve as a source of inspiration for further researchers, who want
to conduct research within this area of work. In this manner, the followings are the suggestions
for further researches.
66
 The study focused on hotels based in the Northern Province, which limited the scope of the
study findings to the Province. Notably, Northern Province is one out of the 9 Provinces of
Sri Lanka and limiting the applicability of the study. In view of this, other studies should be
conducted to assess the impact of CAS on the financial performance of hotels in Sri Lanka
in order to be able to generalize the findings.
 The study found that a 22% variation in financial performance of hotels in Northern
Province of Sri Lanka is explained by factors of computerized accounting systems. This
means that there are other factors that account for the remaining 78%. The study, therefore,
recommends that other studies should be conducted to establish what influences the 78%
change in the financial performance of hotels.
 The present study analyses the impact of the computerized accounting system on the
financial performance of selected hotels in the Northern Province of Sri Lanka. Therefore,
further research may be conducted to evaluate the impact of the computerized accounting
system on the organizational performance of the selected hotels in Sri Lanka.
67
REFERENCES
Abdulle, A. S., Zainol, Z., & Ahmad, H. (2019). Impact Of Computerized Accounting
Information System On Small And Medium Enterprises In Mogadishu, Somalia: The
Balance Scorecard Perspectives. International Journal of Engineering and Advanced
Technology (IJEAT), 8(5C), 159-165.
Ahmad, K. (2012). The Use of Management Accounting Practices in Malaysian SMEs. Doctoral
Thesis, University of Exeter.
Ajzen, I. (1991). The theory of planned behavior. ORGANIZATIONAL BEHAVIOR AND
HUMAN DECISION PROCESSES, 50(2), 179-211.
Akanbi, T. A., & Adewoye, J. (2018). Effects of Accounting Information System Adoption on
the Financial Performance of Commercial Bank in Nigeria. Journal of Accounting &
Marketing, 1(6), 1-6.
Akande, O. O. (2016). COMPUTERIZED ACCOUNTING SYSTEM EFFECT ON
PERFORMANCE OF ENTREPRENEURS IN SOUTH WESTERN NIGERIA.
Proceedings of ISER International Conference. Birmingham, UK: ISBN: 978-93-8608334-0.
Al Hanini, E. (2015). Evaluating the Reliability of the Internal Control on the Computerized
Accounting Information Systems: An Empirical Study on Banks Operating in Jordan.
Research Journal of Finance and Accounting, 6(8), 176-187.
Alam, S. S. (2009). Adoption of internet in Malaysian SMEs. Journal of Small Business and
Enterprise Development, 16(2), 240-255.
Alaoma, E. J., Godwin, N. B., & Okwudili, E. K. (2017). EFFECT OF ACCOUNTING
INFORMATION SYSTEM IN NIGERIA HOSPITALITY AND TOURISM
INDUSTRY (A STUDY OF UNIVERSAL HOTEL, ENUGU). Journal of Global
Accounting, 5(2), 155-165.
Al-Dalaien, B., & Khan, N. (2018). Effect of Accounting Information System on Financial
Performance: A Study of Selected Real Estate Companies in Jordan. International
Journal of Current Engineering and Scientific Research (IJCESR), 4, 23-26.
Ali , A. G. (2012). Adaptation of the Internal Control Systems with the Use of Information
Technologyand its Effects on the Financial Statements Reliability: An Applied Study on
Commercial Banks. International Management Review, 8(1).
Almajali, A. Y., Alamro, S. A., & Al-Soub, Y. Z. (2012). Factors Affecting the Financial
Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange.
Journal of Management Research, 4(2), 266-289.
Al-Qudah, G. A. (2011). The impact of accounting information systems on effectiveness of
internal control in. Interdisciplinary Journal of Contemporary Research in Business,
2(9), 365-377.
Al-Rashdan, M. T., Alwadi, A. G., & Iskandar, T. M. (2020). THE ROLE OF ACCOUNTING
INFORMATION SYSTEM FEATURES ON COMPANIES FINANCIAL
PERFORMANCE IN JORDAN. IJCIRAS | ISSN (O) - 2581-5334, 3(2), 59-75.
68
Al-Waeli, A. J., Hanoon, R. N., Ageeb, H. A., & Idan, H. Z. (2020). Impact of Accounting
Information System on Financial Performance with the Moderating Role of Internal
Control in Iraqi Industrial Companies: An Analytical Study. Journal of Advanced
Research in Dynamical & Control Systems, 12(8), 246- 261.
Al-Wattar, Y. M., Almagtome, A. H., & AL-Shafeay, K. M. (2019). The role of integrating hotel
sustainability reporting practices into an Accounting Information System to enhance
Hotel Financial Performance: Evidence from Iraq. African Journal of Hospitality,
Tourism and Leisure.
Amahalu, N., Abiahu, M. C., & Chinyere, O. (2017). Comparative analysis of computerized
accounting System and manually accounting system of quoted Microfinance Banks
(MFBs) in Nigeria,. International Journal of academic research in accounting, finance,
And management sciences,, VII(2), 30-42.
Amidu, M., Effah, J., & Abor, J. (2011). E-Accounting Practices among Small and Medium
Enterprises in Ghana. Journal of Management Policy and Practice, 12(4), 146-155.
Anael, A. (2017). Assessing the impact of computerized Accounting system usage on
organizational Performance in Tanzania: case study of LGAs in Arusha Tanzania, .
Master dissertation.
Anderson, C. (2008). Writing Accounting Procedures for Internal Control. Bizmanualz.
Andon, P., Chong, K. M., & Roebuck, P. (2010). Personality preferences of accounting and nonaccounting graduates seeking to enter the accounting profession. 21(4), 253-265.
Anil, S., Ting, L. T., Moe, L. H., & Jonathan, G. G. (2003). Overcoming barriers to the
successful adoption of mobile commerce in Singapore. Int. J. Mobile Commun, 191-231.
Bare, A. O. (2016). The extent of adoption of financial accounting standards and its effect on
financial performance of small and medium enterprises in Nairobi county, Kenya. Thesis
(MSc), University of Nairobi.
Bertalanffy, L. V. (1972). The History and Status of General Systems Theory. The Academy of
Management Journal, 15(4), 407-426.
Borhan, O., & Bader, O. (2018). Investigating the Impact of Accounting Information System on
the Profitability of Jordanian Banks. Research Journal of Finance and Accounting,
IX(18), 110-118.
Brealey, R. A., Myers, S. C., & Marcus, A. J. (2001). Fundamentals of Corporate Finance (3rd
ed.). New York: McGraw-Hill.
Brecht, H. D., & Martin , M. P. (2006). Accounting information systems: The challenge of
extending their scope to business and information strategy. Accounting Horizons, 10(4),
16-22.
Chaturvedi, A., & Sharma, P. (2021). A STUDY ON EFFECT OF ACCOUNTING
INFORMATION SYSTEM ON PROFITABILITY AND PERFORMANCE OF
INSURANCE COMPANIES IN INDIA. NIU International Journal of Human Rights,
8(6), 105-113.
69
Cheah, C. M., Teo, A. C., Sim, J. J., Oon, K. H., & Tan, B. I. (2011). Factors Affecting
Malaysian Mobile Banking Adoption: An Empirical Analysis. International Journal of
Network and Mobile Technologies, 2(3), 149-160.
Christauskas, C., & Miseviciene, R. (2012). Cloud computing based accounting for small to
medium-sized. Engineering Economics, 23(1), 14-21.
Darshi, G. N., Nanayakkara, M. S., & Gunawardene, T. L. (2019). The Adoption of
Computerized Accounting System (CAS) in Small and Medium Scale Enterprises
(SMEs): With Special Reference to SMEs located in Matara District, Sri Lanka. Sri
Lanka Journal of Economic Research, 7(1), 77-91.
Dass, R., & Pal, S. (2011). EXPLORING THE FACTORS AFFECTING THE ADOPTION OF
MOBILE FINANCIAL SERVICES AMONG THE RURAL UNDER-BANKED. ECIS
2011 PROCEEDINGS (p. 246). https://aisel.aisnet.org/ecis2011/246.
David, H. W., & Quang, L. H. (2012). Effects of Environmental Uncertainty on Computerized
Accounting System Adoption and Firm Performance.
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of
Information Technology. MIS Quarterly, 13(3), 319-340.
Davis, F. D. (1993). User acceptance of information technology: System characteristics, user
perceptions and behavioral impacts. International Journa of Man-Machine Studies, 475487.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User Acceptance of Computer
Technology: A Comparison of Two Theoretical Models. Management Science, 35(8),
982-1003.
Doane, D. P., & Seward, L. E. (2011). Measuring Skewness. Journal of Statistics Education,
19(2), 1-18.
Fadzilah, N. B. (2017). THE IMPACT OF ACCOUNTING SOFTWARE ON BUSINESS
PERFORMANCE. International Journal of Accounting & Business Management, 5(1).
Farah, N., Farrukh, I., & Faizan, N. (2016). Financial Performance of Firms: Evidence from
Pakistan Cement Industry. Journal of Teaching and Education, 5(1), 81–94.
Frankwood, & Alan, S. (2005). Business accounting (19 ed.). London: Pitman Publishers.
Gelinas, U. J., Sutton, S. G., & Hunton, J. E. (2005). Accounting information systems (6th ed.).
South-Western, USA: Thomson.
Gordon, L. A., & Miller, D. (1976). A contingency framework for the design of accounting
information systems. Readings in Accounting for Management Control, 569-585.
Gunawardana, K. (2015). An Empirical Investigation of the Security of Computerized
Accounting Information Systems (CAIS) in the Selected Listed Companies in Sri Lanka.
Gupta, S. K., & Rangi, R. (2014). Research methodology. Methods, tools and techniques (4th
ed.). New Delhi: Kalyan Publishers.
Guriting, P., & Ndubisi, N. (2006). Borneo online banking: evaluating customer perceptions and
behavioural intention. Management Research News, 29(1-2), 6-15.
70
Harris, A. (2005). Working capital management: difficult, but rewarding. Financial Executives
International, 21(4).
Hussain, J., & Stanikzai, I. U. (2021). The Effects of Financial Management Practices on SMEs
Financial Performance: Evidence of Nangarhar, Afghanistan. Scopia International
Journal for Science, Commerce & Arts (SIJSCA), 1(8).
Idowu, P. A., Alu, A. O., & Adagunodo, E. R. (2002). The Effect of Information Technology on
the Growth of the Banking Industry in Nigeria. The Electronic Journal on Information
Systems in Developing Countries, 10(1), 1-8.
Igbaria, M., & Livari, J. (1995). The effects of self-efficacy on computer usage. Omega, 23(6),
587-605.
IIlias, A., & Zainudin, N. B. (2013). Factor Affecting the Computerised Accounting System
(CAS) Usage in Public Sector. Journal of Internet Banking and Commerce, 18(1), 1-29.
Ironkwe, U., & Nwaiwu, J. (2018). Accounting Information System on Financial and NonFinancial Measures of Companies in Nigeria. International Journal of Advanced
Academic Research, 4(2), 39-55.
Ismael, B. A., Ahmed, R. A., Yaba, J. A., Hamawandy, N. M., jaf, R. S., Jamil, D. A., et al.
(2020). The Effects of Computerized Accounting System on Auditing Process: a Case
Study from Northern Iraq. Solid State Technology, 8564- 8578.
Ismail, N. A., Abdullah, S. N., & Tayib, M. (2003). Computer-based accounting system: The
Case of Manufacturing-Based SME in Northern Region of Peninsular Malaysia. Journal
Technology, 39(1), 19-36.
Itang, A. E. (2020). Computerized Accounting Systems: Measuring Structural Characteristics.
Research Journal of Finance and Accounting, 11(16), 38-54.
Jagels, M. G. (2007). Hospitality Management Accounting (9th ed.). New York: John Wiley &
Sons, INC.
Jawabreh , O. A., & Alrabei, A. M. (2012). The Impact of Accounting Information System in
Planning, Controlling and Decision-Making Processes in Jodhpur Hotels. Asian Journal
of Finance & Accounting, 4(1), 173-188.
Jusoh, N., Mohamed, M., Afzainizam, N., & Ahmad, H. (2018). A REVIEW: FACTORS
INFLUENCING THE USE OF COMPUTERISED ACCOUNTING SYSTEMS (CAS)
BY MALAYSIAN SMES IN MALAYSIA. Proceedings of the 2nd Conference on
Technology & Operations Management (2ndCTOM). Malaysia.
Kashif, B. (2018). Impact of Accounting Information System on the Financial Performance of
Selected FMCG Companies. Asian Journal of Applied Science and Technology (AJAST),
2(3), 8-17.
Kemei, F. K., & Mweberi, E. (2018). Effects of Computerized Financial System on Financial
Performance of Public Companies. American Based Research Journal, 7(2), 29-38.
Kimenyi, M., & Ndung'u, N. (2009). Expanding the financial services frontier: lessons from
mobile phone banking in Kenya. Brookings Institution.
Knechel, W. R. (2007). The business risk audit: Origins, obstacles and opportunities. 32(4-5),
383-408.
71
Kombo, D. K., & Tromp, D. A. (2006). Proposal and thesis writing an introduction. Nairobi,
Kenya: Pualines Publications Africa.
Kumar, R., & Ravindran, S. (2012). An empirical study on service quality perceptions and
continuance intention in mobile banking context in india. Journal of Internet Banking
and Commerce, 17(1).
Lanlan, Z., Ahmi, A., & Popoola, O. J. (2019). Perceived Ease of Use, Perceived Usefulness and
the Usage of Computerized Accounting Systems: A Performance of Micro and Small
Enterprises (MSEs) in China. International Journal of Recent Technology and
Engineering (IJRTE), 8(2S2), 324-331.
Lavrakas, P. J. (2008). Encyclopedia of Survey Research Methods (1st ed.). SAGE Publications,
Inc.
Lee, M. & Jang, S. (2007). Market diversification and financial performance and stability: A
study of hotel companies. International Journal of Hospitality Management, XXVI(2),
362-375.
Liargovas, P., & Skandalis, K. (2008). Factor affecting firms financial performance : The Case
of Greece. Athens: University of Peloponnese Press.
Luarn, P., & Lin, H. H. (2005). Toward an understanding of the behavioural intention to use
mobile banking. Computers in Human Behaviour, 21(6), 873-891.
Lunardi, G. L., Becker, J. L., Carlos, A., Maçada, G., & Dolci, P. C. (2014). The impact of
adopting IT governance on financial performance: An empirical analysis among
Brazilian firms. International Journal of Accounting Information Systems, 15(1), 66-81.
Maqbool, S., & Zameer, N. (2018). Corporate social responsibility and financial performance:
An empirical analysis of Indian banks. Future Business Journal, 4(1), 84-93.
Mayes, D. G., & Toporowski, J. (2007). Open Market Operations and Financial Markets.
London: Routledge Taylor & Francis Group.
McMillan, J. H., & Schumacher, S. (1993). Research in education: A conceptual understanding.
New York: Haprer Collins.
Mele, C., Pels, J., & Polese, F. (2010). A Brief Review of Systems Theories and Their
Managerial Aapplications. Service Science, 2(1-2), 126 - 135.
Mochoge, O. C. (2014). SMES' ADOPTION OF WEB-BASED MARKETING: EMPIRICAL
EVIDENCE FROM KENYA. IJCSI International Journal of Computer Science, 11(1),
226-236.
Mohd , F. S. (2012). Special Issue: Impact of Information Technology on Organizational
Performance. 16(4), 3-10.
Morawczynski, O., & Pickens, M. (2009). Poor People Using Mobile Financial Services:
Observations on Customer Usage and Impact from M-PESA.
Mugenda, O. M., & Mugenda, A. G. (2008). Research methods: Quantitative and qualitative
approaches. Nairobi Kenya: Acts Press.
72
Muguchia, M. M. (2018). THE EFFECT OF FINANCIAL MANAGEMENT PRACTICES ON
THE FINANCIAL PERFORMANCE OF THE COMPANIES LISTED AT NAIROBI
SECURITIES EXCHANGE. Master Thesis, University of Nairobi.
Munasinghe, P. G., & Munasinghe, D. S. (2015). Factors influence on usage of Computerized
Accounting System on Small and Medium Scale Enterprise. International Conference on
Contemporary Management. University of Jaffna: Faculty of Management Studies and
Commerce.
Nash, J., Heagy, C., & Courtney, H. (1999). The design, selection, and implementation of
accounting information systems. Houston: Dame Publication Inc.
Ndalahwa, M. M. (2019). The Impact of Computerized Accounting System on the Financial
Performance for Selected Private Companies in Arusha, Tanzania. INTERNATIONAL
JOURNAL OF INNOVATION IN EDUCATION AND BUSINESS.
Neogy, D. (2014). Evaluation of Efficiency of Accounting Information Systems: A Study on
Mobile Telecommunication Companies in Bangladesh. Global Disclosure of Economics
& Business, 3(1), 40-55.
Ng’etich, W. K. (2017). The Effect of Internal Controls on the Financial Performance of Firms
Listed At the Nairobi Securities Exchange. Master thesis, University of Nairobi.
Nizar, S., Ahmad, F., & Mohamad, M. (2016). Evaluation of Accounting Information Systems in
Meeting the Requirements ofFinancial and Managerial Performance: "Field Study in the
United Arab Emirates Private Hospitals. International Journal of Humanities and Social
Science, 6(4), 170-176.
Ofoegbu, G. (2003). Advanced financial accounting. Enugu: Precision publishers.
Okoye, E. I., & Gbegi, D. O. (2012). An Analysis of Computerized Accounting System on
Service Delivery in the Banking Sector (Study of First City Monument Bank Plc). Salem
Journal of Management Sciences, 1(1), 293-302.
Omondi, M. M., & Muturi, W. (2013). Factors Affecting the Financial Performance of Listed
Companies at the Nairobi Securities Exchange in Kenya. Research Journal of Finance
and Accounting, 4(15), 99-104.
Ongore, V. O., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial
Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237252.
Pagani, M. (2004). Determinants of Adoption of Third Generation Mobile Multimedia Services.
Journal of Interactive Marketing, 46-59.
Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of
online banking: An extension of the technology acceptance model. 14(3), 224-235.
Polo, O., & Oima, D. (2012). Effect of Computerized Accounting Systems on Audit Risk
Management in Public Enterprises: A Case of Kisumu County, Kenya. International
Journal of Education and Research.
Rogers, M. (2002). Diffusion of preventive innovations. Integrating Substance Abuse Treatment
and Prevention in the Community, 27, pp. 989-993.
Ross, S. A., Westerfield, K. W., & Jatte, j. (1996). “Corporate Finance’’.
73
Rotich, E. C. (2017). The impact of accounting information systems on effectiveness of
manufacturing in Kenya,. Unpublished MBA Report from University of Nairobi.
Salihi, A. A., Jibril, R. S., & Ibrahim, F. B. (2015). Customers Satisfaction On The
Computerized Accounting System In Nigerian. Researchjournali’s Journal of
Accounting, 3(3), 1-9.
Sam, M. F., Yosuo, H., & Tahir, N. H. (2012). The Adoption of Computerized Accounting
System in Small Medium Enterprises in Melaka, Malaysia. International Journal of
Business and Management, 7(18), 12-25.
Saudani, S. N. (2013). The Impact of Implementation of E-Accounting System on Financial
Performance with Effects of Internal Control Systems. Research Journal of Finance and
Accounting, 4(11), 17-27.
Sekyere, A. M., Amoateng, A. K., & Frimpong, K. (2017). The Determinants of Computerized
Accounting System on Accurate Financial Report in Listed Banks on the Ghana Stock
Exchange. International Journal of Finance and Accounting, 6(4), 104-110.
Sharma, A., & Upneja, A. (2005). Factors influencing financial performance of small hotels in
Tanzania. International Journal of Contemporary Hospitality Management, XVII(6), 504515.
Shimp, T. A., & Kavas, A. (1984). The theory of reasoned action applied to coupon usage.
Journal of Consumer Research, 11(3), 795-809.
Shin, N., Kim, C., Tao, W., & Kim, K. (2010). An Empirical Study of Customers’ Perceptions of
Security and Trust in e-Payment System. Electronic Commerce Research and
Applications, 84-95.
Stefanou, C. (2006). The Complexity and the Research Area of AIS. Journal of Enterprise
Information Management, 19(1), 9-12.
Taiwo, J. N., & Edwin, A. M. (2016). Effects of ICT on accounting information system and
organizational performance. European journal of business and social sciences, 1-15.
Tavakolian, H. (1995). PC-Based financial Software: Emerging Options. Industrial Management
& Data Systems, 95(10), 19-24.
Teru, S. P., Idoku, I., & Ndeyati, J. T. (2017). A Review of the Impact of Accounting
Information System for Effective Internal Control on Firm Performance. Indian Journal
of Finance and Banking, 1(2), 52-59.
The International Financial Reporting Standards. (2006). An AICPA Backgrounder. New York:
AICPA.
Thomas, N., Charles, O., Zablon, E., & Jared, A. (2016). Influence of Working Capital
Management Practices on Financial Performance of Small and Medium Enterprises in
Machakos Sub-County, Kenya. International Journal of Sciences: Basic and Applied
Research (IJSBAR), 30(4), 286-309.
Thuva, M. S., & Muturi, W. M. (2017). DETERMINANTS OF FINANCIAL PERFORMANCE
OF INCOME GENERATION UNITS AMONG PUBLIC UNIVERSITIES: CASE
STUDY OF JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND
74
TECHNOLOGY ENTERPRISES LIMITED. International Journal of Social Sciences
and Information Technology, 3(7), 2223-2234.
Topcu, A. G. (2019). IMPACT OF ACCOUNTING INFORMATION SYSTEMS (AIS) ON
FRAUD DETECTION. Management and Political Sciences Review, 81-92.
Trabulsi, R. U. (2018). The Impact of Accounting Information Systems on Organizational
Performance: The Context of Saudi’s SMEs. International Review of Management and
Marketing, 8(2), 69-73.
Ukko, J., Nasiri, M., Saunila, M., & Rantala, T. (2019). Sustainability strategy as a moderator in
the relationship between digital business strategy and financial performance. Journal of
Cleaner Production, 236.
Uzrail, A. H., & Bardai, B. (2019). MODERATING EFFECT OF THE ADOPTION OF
COMPUTERIZED ACCOUNTING INFORMATION SYSTEMS AND THE
PERCEIVED EFFECT ON FINANCIAL PERFORMANCE – A STUDY OF
PALESTINIAN COMPANIES CASE. International Journal Of Creative and Innovative
Research In All Studies, 2(2), 63-74.
Velnampy, T., & Nimalathasan, B. (2010). Firm Size on Profitability: A Comparative Study of
Bank of Ceylon and Commercial Bank of Ceylon Ltd in Srilanka. Global Journal of
Management and Business Research, 10(2), 96-103.
Wang, Y. S., Wang, Y. M., Lin, H. H., & Tang, T. I. (2003). Determinants of user acceptance of
internet banking: An empirical study. International Journal of Service Industry
Management, 14(5), 501-519.
Wei, T., Marthandan, G., Chong, A., Ooi, K., & Arumugam, S. (2009). What drives Malaysian
m‐commerce adoption? An empirical analysis. Industrial Management & Data Systems,
109(3), 370-388.
Williams, I. (2005). Corrupt practices: Implications for Economic Growth and Development of
Nigeria. The Nigeria accountants, 44-50.
Yasuharu, U. (2003). The effects of information system investment in banking industry.
Zambon, S., & Zan, L. (2000). Accounting Relativism: The Unstable Relationship Between
Income Measurement and Theories of the Firm. Accounting, Organizations and Society,
25(8), 799-822.
Zhang, L., Aidi, A., & Muse, J. P. (2019). Perceived Ease of Use, Perceived Usefulness and the
Usage of Computerized Accounting Systems: A Performance of Micro and Small
Enterprises (MSEs) in China. International Journal of Recent Technology and
Engineering (IJRTE), 8(2), 324-331.
75
APPENDICES
APPENDIX I: LETTER TO RESPONDENTS
T.Laxsithan
Department of Accounting,
Faculty of Management Studies and Commerce,
University of Jaffna,
Sri Lanka.
Dear Respondents,
The data collected from you will be kept confidential for use only for educational purposes. I
wish to extend my sincere thanks for your valuable times spent on this questionnaire in order to
facilitate the partial fulfillment of my undergraduate degree program at the University of Jaffna.
Yours faithfully,
………………….
(T.Laxsithan)
76
APPENDIX II: QUESTIONNAIRE
THE IMPACT OF COMPUTERIZED ACCOUNTING SYSTEM (CAS) ON
FINANCIAL PERFORMANCE IN HOTEL INDUSTRY IN NORTHERN
PROVINCE, SRI LANKA
This questionnaire comprise three sections, Section A, B, and C
SECTION - A
Instruction:
This section dealt with the personal information of the respondents.
Please tick √
mark in to the appropriate box of the question and write down the information
wherever necessary.
1. Name of your hotel
……………………………………………………………………………..
……………………………………………………………………………..
2. Number of Employees working in your hotel
…………………………………………………………..…………………
3. Type of hotel:
……………………………………………………………………………
4. Type of business:
Family-Owned
Sole Proprietor
Partnership
Private Limited
5. Gender
Male
Female
77
6. Marital status:
Single
Married
7. Age group:
Less than 30
31- 40
41- 50
More than 50
8. Education:
Less than or equal to G.C.E Ordinary Level (O/L)
G.C.E Advanced Level (A/L)
Diploma
Bachelor Degree
Post Graduate Diploma
Post Graduate Degree
Other (Specify) ……………………………………………………
9. Current position in the organization:
Owner
Manager
Accountant
Internal Auditor
10. Experience in the hotel business:
Less than 5 years
5 to 10 years
78
10 to 15 years
More than 15 years
11. Divisions or Departments of the Hotel:
Front Office
Housekeeping
Food & Beverage Service
Kitchen
Sales & Marketing
Human Resource
Accounts and Finance
Maintenance and Engineering
12. Are you using Computerized Accounting System (CAS):
Yes
No
13. If yes, state the computerized accounting package /s in your hotel:
……………………………………………………………………..………..
14. How long you are using CAS:
Less than 2 years
2 to 4 years
4 to 6 years
More than 6 years
79
SECTION - B
Section B consist 32 statements to measure the Computerized Accounting System (CAS) of
the hotel, with five point Likert scale ranging from Strong Agree to Strong Disagree with the
following scale:
5 – Strongly Agree
4 – Agree
3 – Neutral
2 – Disagree
1 – Strongly Disagree
Please carefully read each questions and indicate to what extent you agree or disagree of the
Strongly
Disagree
Disagree
Neutral
Agree
Statements
Strongly
Agree
following statements in the questionnaire, and tick (√) mark in to the appropriate scale.
Perceived Usefulness (PU)
01
CAS is very fast in computing transactions compare to
manual-method
02
Using CAS minimize errors and mistakes
03
CAS improves the quality of the work done
04
Employees enjoy a high efficiency in dealing with the
CAS
05
CAS software are tailor-made, which are made to
undergo automated job
Perceived Ease of Use (PEoU)
06
Learning and using of CAS is not complicated
07
I feel that no need much mental efforts to interact with
CAS.
08
Accounting functions like posting transactions to the
ledger and double entry are simplified
09
I feel that it is easy to do difficult task by using CAS.
80
Internal Control (IC)
10
CAS is protected from intrusions, information theft, and
data manipulation
11
CAS checks and confirms the accuracy of data entered
in the systems
12
Authorized employees are allowed to access into data
for addition or deletion or making the necessary
modifications
13
Auditing of the financial statement is ease with the use
of CAS
Quality Information (QI)
14
I feel that CAS provides accurate information
15
I feel that CAS provides valid information
16
I feel that CAS makes the information more credible
17
CAS provides adequate information at right time
18
We are able to make understandable information
through the CAS
19
CAS
provides
reliable
information
and
gives
opportunity to user to improve their works
Speed (SP)
20
CAS
makes
the
communication
easier
among
department
21
We are able to reduce time spent on transaction through
the CAS
22
CAS made an integration and consistency among
department faster
23
Speed of processing accounting information is improved
by using accounting software
24
CAS helps the management to take timely decisions
Perceived Cost (PC)
25
Acquiring CAS is less costly compare to it usage
26
On-going usage cost and upgrade cost of CAS is
81
generally low compare to its usage
27
CAS reduce operating cost
Competent CAS (CCAS)
28
Using CAS more competent in the organization through
improve financial performance
29
CAS can interface with Point of Sales (POS) devices
30
We can easily make documents like purchase orders,
sales invoices, and others by using CAS
31
I feel that accounting software applies the right
accounting principles, procedure and standards
32
CAS contribute to make the information outputs more
suitable for decision-makers
SECTION - C
Section C comprises 12 statements to measure the Financial Performance of the hotel, with five
point Likert scale ranging from Strong Agree to Strong Disagree with the following scale:
5 – Strongly Agree
4 – Agree
3 – Neutral
2 – Disagree
1 – Strongly Disagree
Please carefully read each questions and indicate to what extent you agree or disagree of the
Strongly
Disagree
Disagree
Neutral
Agree
Statements
Strongly
Agree
following statements in the questionnaire, and tick (√) mark in to the appropriate scale.
Financial Performance (FP)
01
02
03
Hotel has been generating net profits in an increasing rate
for recent years
I strongly feel that operating profit for the hotel has been
increasing over last 5 years
Business turnover has been significantly increasing for
recent years
82
04
05
Our hotel has been ploughing back retained earnings
every year
Sales margins have been increasing year by year
06
The liquidity of the hotel's assets has increased
07
08
Hotel has been reporting net cash flow increasing for year
by year
Hotel’s asset base has greatly increased over time
09
Assets of the hotel are fully utilized with efficiency
10
Business has the ability to settle short-term loans/credits
11
I strongly feel that our hotel maintains better inventory
management
Our hotel always achieves its target profit
12
Thank you for your cooperation
83