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The effect of accounting information system effectiveness on accounting information usefulness via information trust and information timeliness as mediators: case study of Thai-listed companies.
Abstract:
This study aims at investigating the effects of accounting information system effectiveness on accounting information usefulness via information trust and information timeliness as mediators. Accounting information system effectiveness includes five dimensions, namely, accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and unique information source. Accounting executives of Thai listed-firms are samples of the study. The results indicate that accounting practice quality enhances the accounting information usefulness via information trust and timeliness and valuable activity linkage improves the accounting information usefulness via accounting timeliness. For the influence of a moderating variable on the aforementioned relationships, the IT Supported moderates the relationship between accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and information trust. It also moderates the relationship between strategic planning linkage, unique information source and information timeliness. Discussion is effectively implemented in the study. Theoretical and professional contributions are explicitly provided. Conclusion and suggestions and directions of the future research are described.

Keywords: Accounting Information System Effectiveness; Accounting Practice Quality; Internal Control Efficiency; Strategic Planning Benefit; Valuable Activity Linkage; Unique Information Source; Information Trust; Information Timeliness; IT Support

Article Type:
Report
Subject:
Accounting (Analysis)
Business enterprises (Technology application)
Information technology (Usage)
Information technology (Analysis)
Author:
Sumritsakun, Chaiyot
Pub Date:
01/01/2012
Publication:
Name: International Journal of Business Research Publisher: International Academy of Business and Economics Audience: Academic Format: Magazine/Journal Subject: Business, international Copyright: COPYRIGHT 2012 International Academy of Business and Economics ISSN: 1555-1296
Issue:
Date: Jan, 2012 Source Volume: 12 Source Issue: 1
Topic:
Computer Subject: Information technology; Technology application
Product:
Product Code: 9915400 Accounting Methods; 9912200 Venture Analysis; 9912600 Information Systems & Theory SIC Code: 8721 Accounting, auditing, & bookkeeping
Geographic:
Geographic Scope: United States Geographic Code: 1USA United States
Accession Number:
293949177
Full Text:
1. INTRODUCTION

In recent years, business environments have rapidly changed. Technology and telecommunication are improving, trade barriers are decreasing and economies are integrating. Many firms increasingly expand business activity from a domestic focus to globalization. Firms have increased business activity via exporting, licensing, foreign direct investing and other international activity (Buckley, 2002). A globalized market is more competitive than in a domestic market, because in a globalized market includes many competitors around the world. Not only has the goods market changed but capital markets have changed as well. The development of information technology has more effect on capital markets. It helps firms communicate with investors who live around the world and investors can invest in stock markets in many countries. It leads to integrated stock markets (Sabri, 2006).

As a result, in order to stay alive in a highly competitive environment or gain highest compensation from the stock market, managers of the firm and investors have to have effective information. Effective information helps managers and investors make the best decisions in order to gain profits. One type of effective information that firms must have is accounting information. There is much research providing evidence that accounting information benefits the decision-making of firms' managers and investors. For firms' managers, accounting information is widely used for planning and controlling. Accordingly, accounting information plays two roles which are a decision influencing role and a decision-facilitating role (Williams and Seaman, 2002). In the decision influencing role, accounting information is used for performance evaluation because it provides information already realized, or which outcomes were realized (Williams and Seaman, 2002). In the decision-facilitating role, accounting information helps a manager to improve his or her action choice through better-informed effort because it enhances a manager's ability to predict state variables (Tiessen and Waterhouse, 1983). For investors, information about accounting earnings effects the pricing of stocks (Ball and Brown, 1968; Ohlson, 1995). Not only accounting earnings, but the other information in a balance sheet, income statement and cash flow statement have influence on stock price too. One accounting researcher called this value-relevance (Beaver et al., 1980; Beaver, 1987; Ohlson, 1995; Chen et al., 2001).

Accordingly, accounting information is necessary information for decision-making. As a result, the accounting information system is very important in order to generate useful accounting information. According to literature reviews, there are some weak points in the study of accounting information systems and there are few research studies on accounting information system effectiveness. This study concentrates on this point and purposes characteristics of accounting information system effectiveness namely accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and unique information source. The concept of accounting information system effectiveness emphasizes how it generates useful information. Finally, useful information leads the firms' managers and investors to make effective decisions.

For the unconsidered perspective in prior studies, this study uses the resource based view of the firm (RBV) to the study concept of the accounting information system by focusing on accounting information system effectiveness treated as a firm-specific resource. It consists of the unique and prominent attributes of firm's resources that are valuable, rare, inimitable, and non-substitutable (Penrose, 1959; Barney, 1991; Capron and Hulland, 1999). All firms need to acquire and preserve those resources that give better firm performance, especially in the long-run, and obtain a competitive advantage (Barney, 1991; Capron and Hulland, 1999). As a result, firms which have more effective accounting information system will have more competitive advantage due to financial information trust and information timeliness. And, hence, it will bring accounting information usefulness in the long-run. Therefore, this study applies the resource based view of the firm (RBV) theory to explain why a certain firm is more successful than others.

The assessing literature shows relationship between accounting information system effectiveness, financial information trust, information timeliness and accounting information usefulness. The purpose of this study is two-fold. The first one is to investigate accounting information system effectiveness. The second is to study the contributions of accounting information system effectiveness in Thai listed firms. The primary research questions of this study are to uncover the relationship between accounting information system effectiveness and accounting information usefulness via financial information trust and information timeliness as mediator. Also, the specific questions are (1) how does accounting information system effectiveness relate to financial information trust and information timeliness?, (2) how do financial information trust and information timeliness mediate the relationship between accounting information system effectiveness and accounting information usefulness?, (3) how does IT Support moderate the effect of accounting information system effectiveness on financial information trust and information timeliness?

The remainder of this study is organized as follows. First, literature reviews of accounting information system effectiveness, financial information trust, information timeliness and accounting information usefulness are addressed. Research hypotheses developments are also presented. Second, the research methods used to test the hypotheses are discussed. Third, the results derived from 112 accounting executives of Thai listed-firms are indicated and their reasonable discussions with existing literature supports are shown. Finally, the study concludes by discussing implications for theory and practice, identifying limitations of the study, and providing suggestions and directions for future research.

2. THEORETICAL FOUNDATION

2.1Resource-Based View of the Firm (RBV)

The resource-based view of the firm focuses on the firm's bundle of valuable resources and helps transform a shot-run competitive advantage into a sustained competitive advantage. The valuable resources have to be heterogeneous in nature and not perfectly mobile (Penrose, 1959; Barney, 1991). A sustainable competitive advantage of the firm is reached through unique resources which have the characteristic of being rare, valuable, inimitable, and non substitutable. It means the resources which a firm holds must not be easily bought, transferred, copied and concurrently they add value to a firm as being rare (Barney, 1991). Firm resources can be classified into resources and capabilities (Day, 1994). They are core to the competitive advantage of a firm (Grant, 1991). Resources can be separated into tangible assets and intangible assets such as financial, technology, knowledge and human capital while capabilities are firm specific and used to utilize the assets within the firm such as implicit process to transfer knowledge within the firm (Maijoor and Wittleloostuijn, 1996; Makadok, 2001). As a result, the firm tries to use valuable, heterogeneous, rare and inimitable resources in order to improve and create sustainable competitive advantages of the firm through capabilities (Capron and Hulland, 1999).

An important firm resource is its accounting information system effectiveness. Accounting information system effectiveness reflects the firm's philosophy of how to conduct its accounting process through a deeply rooted set of values and beliefs that provide the information usefulness to make the best decision and achieve superior performance in the end. In this study the focus is on four important dimensions of accounting information system effectiveness, namely, accounting practice quality, Internal control efficiency, strategic planning benefit, valuable activity linkage and the unique information source. The effectiveness of an accounting information system can help a firm transform a short run competitive advantage into a sustained competitive advantage by increasing information trust and information timeliness. As a result, the firm can maintain accounting information usefulness that helps the firm make effective decisions in order to have performance superior to competitors in the highly competitive market.

[FIGURE 1 OMITTED]

This study aims at examining the effects of accounting information system effectiveness on accounting information usefulness. Accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and unique information are independent variables; and accounting information usefulness is a dependent variable. Also, information trust and information timeliness are mediators; and IT support is a moderator. In this study, the positive relationships of the aforementioned variables are hypothesized definitely. Thus, the conceptual, linkage, and research model presents the relationships among accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage unique information, accounting information usefulness, information trust, information timeliness and IT support, as shown in Figure 1.

3. LITERATURE REVIEWS AND RESEARCH HYPOTHESES DEVELOPMENTS

3.1 Accounting Information System Effectiveness

3.1.1 Accounting Practice Quality

Accounting practice quality is a key determinant of accounting information system effectiveness. It refers to an accounting information system that provides unmistaken information and gives opportunities to accountants to improve their work. Accounting practice is a process for recording, classifying and summarizing economic transactions and events and interpreting them in a form of accounting report for users. Not only summarizing economic events, accounting practice also supports information in shaping corporate strategy, explains and evaluates performance in the part, present and future. As a result, accounting has an influence on behavior and enhanced knowledge of users, supports the establishment of cooperation for performance and acts as monitors for administrators.

Accordingly, maintaining the high quality of an accounting practice is very necessary because it has an effect on the reliability of the information and on decision making of the user. The firm which has accounting practice of quality will have information trust and information timeliness. Thus the relationship between accounting practice quality and information trust and timeliness are hypothesized as show below.

Hypothesis 1a: The higher the accounting practice quality, the higher the information trust.

Hypothesis 1b: The higher the accounting practice quality, the higher the information timeliness.

3.1.2 Internal Control Efficiency

Similar to the accounting practice quality, internal control efficiency is also a main component of accounting information system effectiveness. The benefits of internal control are to help a firm reduce risk in business operations, to protect the organization from fraud and dishonesty and to enhance efficiency and effectiveness of employee work (Ditdeaw and Ussahawanitchakit, 2010). In this research, internal control efficiency refers to an accounting information system helping to identify problems in the accounting process, uncover fraud and aid internal auditors to collect and analyze the internal control system.

In addition, if a firm has accounting information system effectiveness through internal control efficiency, it will have few mistakes from operations. As a result, accounting information has few mistakes and is generated on time. Thus the relationship between internal control efficiency and information trust and timeliness are hypothesized as show below.

Hypothesis 2a: The higher the internal control efficiency, the higher the information trust.

Hypothesis 2b: The higher the internal control efficiency, the higher the information timeliness.

3.1.3 Strategic Planning Benefit

A strategic planning benefit refers to an accounting information system that provides information that helps managers with planning and control. Strategic planning is a very important activity of the firm that effects firm performance (Hanpuwadal and Ussahawanitchakit, 2010) by creating organization goal congruence, supporting creativity and changing circumstances, improving effectiveness of internal processes, creating firms innovation, and determining the success or failure of an organization (Verbeeten et. al., 2009; Whittington and Cailluet, 2008). In the process of decision making, the trust and timeliness of information is very necessary because it increases confidence of managers to choose the right strategic plan.

Moreover, high quality of information generated by the highly effective accounting information system will help managers generate efficient and effective strategic plans. As a result, the firm gains more competitive advantages. Thus, the relationship between strategic planning benefit and information trust and timeliness are hypothesized as show below.

Hypothesis 3a: The higher the strategic planning benefit, the higher the information trust.

Hypothesis 3b: The higher the strategic planning benefit, the higher the information timeliness.

3.1.4 Valuable Activity Linkage

Valuable activity linkage refers to the accounting information system that provides information in activity level. The link between the business process such as accounting, human resources, and planning factions in the front-office to warehouses, manufacturing facilities, and the transportation function in the back office together and the integration of people, suppliers, and customers is very necessary in a business operation. A firm that can link the process will increase decision making speed, improve the control of operations and costs, improve enterprise wide information dissemination, expand supply chain opportunities and improve customer relations. As a result, a firm will gain competitive advantage (Ditkaew and Ussahawanitchakit, 2010).

Furthermore, the information from the accounting information system that links the business process and activity will generate trust and timeliness of information because the information comes from the place that it happens and is sent to managers as soon as they want. Thus, the relationship between valuable activity linkage and information trust and timeliness are hypothesized as show below.

Hypothesis 4a: The higher the valuable activity linkage, the higher the information trust.

Hypothesis 4b: The higher the valuable activity linkage, the higher the information timeliness.

3.1.5 Unique Information Source

Similar to the other, unique information source is also a main component of accounting information system effectiveness. It refers to the accounting information system that provides information that cannot be found elsewhere. This dimension is very important because accounting is a system that summarizes firm's investments, operating, and financing activities and interprets them in the form of financial statements which are used as decision making support (Bushman et al, 2004). Thus, this information must be provided by the accounting information system. If the system cannot present financial information to support decision making, it means the system has failed.

In addition, the statement is used as a decision making support because it provides financial information about the past and present that comes from business activities used to predict future financial status (Bushman et al, 2004). Thus, the relationship between unique information source and information trust and timeliness are hypothesized as show below.

Hypothesis 5a: The higher the unique information source, the higher the information trust.

Hypothesis 5b: The higher the unique information source, the higher the information timeliness.

3.2 Information Trust

Information trust refers to information that is a faithful representation of economic substance, free from bias, conservatism and completeness. The importance of information trust of a financial report is the information that is presented in the report because the accounting information is used by many groups of people such as managers, investors and governance (Watts and Zimmerman, 1986). For example, accounting data such as earnings is commonly used in compensation arrangements and in debt agreements (Healy, 1985). Thus trust of it is very necessary.

Moreover, unreliable financial reports lead a firm to capital difficultly. Investors use financial reports as information to make decisions for investment or reinvestment and lenders use financial reports to evaluate the solvency of a firm in order to make lending decisions (Schipper and Vincent, 2003). Furthermore, missing financial report information leads a manager to make decisions inefficiently. As a result it reduces firm growth by causing capital to be misallocated. Thus, the relationship between information trust and accounting information usefulness is hypothesized as show below.

Hypothesis 6: The higher the information trust, the higher the accounting information usefulness.

3.3 Information Timeliness

Information timeliness refers to accounting information that is available, current and accessible. Similar to information trust, accounting information is used to support decision. Directors need information to approve managerial decisions, provide managerial incentives, and aid in strategic planning activities. Outside investors and financial analysts need information to understand how and why equity values are changing (Bushman et al, 2004). Thus timeliness of the information is also essential.

Moreover, timely information reduces asymmetric dissemination of financial information and uncertainty associated with investment decisions (Jaggi and Tsui, 1999, Ashton et al., 1987). In contrast, untimely information makes financial statement less usefulness (Ahmad and Kamarudin, 2001) and stock market inefficiency (Ismail and Chandler, 2003). Thus, the relationship between information timeliness and accounting information usefulness is hypothesized as show below.

Hypothesis 7: The higher the information timeliness, the higher the accounting information usefulness.

3.4 IT Supported as Moderating Effects

To expand the understanding of the relationships among accounting information system effectiveness and information trust and timeliness, this study identifies IT support as moderating influences of the aforementioned relationship. IT Supported is defined as using information technology to manage data and to generate information. The information system that developed in the past decade year is enterprise resource planning (ERP) software. The ERP helps a firm's consolidated organization information on the one database to integrate all aspects of their business on to one system (Bingi, Sharma, and Godla, 1999). In addition, the system includes expert systems, decision support systems, online manager information systems and external information retrieval systems (Huber, 1990).

Firms which use information technology will allow a relevant increase to effectiveness of the accounting information system by improving the quality of information and reducing time to generate information. Hence, information technology support is likely to positively moderate the accounting information system effectiveness, information trust and timeliness relationships. Therefore,

Hypothesis 8a: IT Supported will positively moderate the accounting information system effectiveness and information trust relationships.

Hypothesis 8b: IT Supported will positively moderate the accounting information system effectiveness and information timeliness relationships.

4. RESEARCH METHODS

4.1 Sample Selection and Data Collection Procedure

In this study, 540 Thai listed-firms were selected as the sample. A mail survey procedure via the questionnaire was used for data collection. The key participants in this study were accounting executives of Thai listed-firms. With regards to the questionnaire mailing, 1 survey was undeliverable because a firm had moved to an unknown location. Deducting the undeliverables from the original 540 mailed, the valid mailing was 539 surveys, from which 114 responses were received. Of the surveys completed and returned, all 114 were usable. The effective response rate was approximately 21.15%. According to Aaker, Kumar and Day (2001), the response rate for a mail survey, without an appropriate follow-up procedure, is less than 20%. Thus, the response rate of this study is considered acceptable.

To test potential and non-response bias and to detect and consider possible problems with non-response errors, the assessment and investigation of non-response-bias was centered on two different procedures: (1) a comparison of sample statistics and known values of the population, such as number of years in doing business, and amount of capital funding, and (2) a comparison of first wave and second wave data recommended by Armstrong and Overton (1977). Neither procedure showed significant differences.

4.2 Methods

Factor analysis was implemented to assess the underlying relationships of a large number of items and to determine whether they can be reduced to a smaller set of factors. The factor analysis conducted was done separately on each set of the items representing a particular scale due to limited observations. This analysis has a high potential to inflate the component loadings. Thus, a higher rule-of-thumb, a cut-off value of 0.40, was adopted (Nunnally and Bernstein, 1994). All factor loadings are greater than the 0.40 cut-off and are statistically significant. Also, the reliability of the measurements was evaluated by Cronbach alpha coefficients. In the scale reliability, Cronbach alpha coefficients are greater than 0.70 (Nunnally and Bernstein, 1994). The scales of all measures appear to produce internally consistent results; thus, these measures are deemed appropriate for further analysis because they express an accepted validity and reliability in this study. Table 1 presents the results for both factor loadings and Cronbach alpha for multiple-item scales used in this study.

The ordinary least squares (OLS) regression analysis is used to test and examine the hypothesized relationships and estimate factors of accounting information usefulness of Thai-listed firms. Here, accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage unique information source, information trust, and information timeliness play significant roles in explaining the research relationships. Because all dependent variable, independent variables, moderating variables, and control variables in this study were neither nominal data nor categorical data, OLS is an appropriate method for examining the hypothesized relationships. With the need to understand the relationships in this study, the research model of the aforementioned relationships is as follows.

Equation 1: ITR = [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII].

Equation 2: ITL = [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII].

Equation 3: [[beta].sub.03] + [[beta].sub.27]ITR + [[beta].sub.28]ITL + [[beta].sub.29]Size + [[beta].sub.30]Age + [epsilon]

5. RESULTS AND DISCUSSION

Table 2 shows the descriptive statistics and correlation matrix for all variables. With respect to potential problems relating to multicollinearity, variance inflation factors (VIF) were used to provide information on the extent to which non-orthogonality among independent variables inflates standard errors. The VIFs range from 1.01 to 3.52, is well below the cut-off value of 10 recommended by Neter, Wasserman and Kutner (1985), meaning that the independent variables are not correlated with each other. Therefore, there are no substantial multicollinearity problems encountered in this study.

Table 3 presents the results of OLS regression analysis of the relationships among accounting information system effectiveness dimensions, information trust, information timeliness and accounting information usefulness. First, accounting practice quality has a significant positive relationship with information trust ([b.sub.1a] = 0.30, p < 0.01; [b.sub.1b] = 0.21, p < 0.05). Then, the quality of accounting practice has enhanced reliability of accounting information. Accordingly, a firm which has accounting practice quality tends to have information trust. Thus, Hypothesis 1a is supported. Surprisingly, internal control efficiency, strategic planning benefit, valuable activity linkage and unique Information source do not have an effect on information trust ([b.sub.2a] = 0.16, p > 0.05; [b.sub.2b] = 0.17, p > 0.05; [b.sub.3a] = 0.19, p > 0.05; [b.sub.3b] = 0.11, p > 0.05; [b.sub.4a] = 0.10, p > 0.05; [b.sub.4b] = 0.11, p > 0.05; [b.sub.5a] = 0.12, p > 0.05; [b.sub.5b] = 0.13, p > 0.05) Thus,

Hypotheses 2a-5a are not supported.

Second, accounting practice quality and valuable activity linkage have significant positive relationship with information timeliness ([b.sub.14a] = 0.28, p < 0.05; [b.sub.14b] = 0.16, p > 0.05; [b.sub.17a] = 0.21, p < 0.05; [b.sub.17b] = 0.23, p > 0.05) Thus, Hypothesis 1b and 4b are supported. Then, the internal control efficiency, strategic planning benefit, and unique Information source do not have an effect on information timeliness ([b.sub.15a] = 0.06, p > 0.05; [b.sub.15b] = 0.05, p > 0.05; [b.sub.16a] = 0.18, p > 0.05; [b.sub.16b] = 0.13, p > 0.05; [b.sub.18a] = 0.13, p > 0.05; [b.sub.18b] = 0.11, p > 0.05) Thus, Hypotheses 2b, 3b and 5b are not supported.

Third, information trust and information timeliness have important association with accounting information usefulness ([b.sub.27] = 0.29, p < 0.01; [b.sub.28] = 0.45, p < 0.01). Thus, Hypotheses 6-7 are not supported. In addition, the role of IT Supported is moderator of the relationship between accounting information system effectiveness and accounting trust. The results of OLS regression provide evidence that it moderates the relationship between accounting practice quality, internal control efficiency, strategic planning benefit, value activity linkage and information trust ([b.sub.7] = -0.21, p < 0.05; b8 = 0.43, p < 0.05; b9 = 0.18, p < 0.05; [b.sub.10] = -0.20, p < 0.05) but doesn't moderate the relationship between unique information source and information trust ([b.sub.11] = -0.10, p > 0.05). Thus, Hypotheses 8a is supported. Furthermore, the role of IT Supported is a moderator of the relationship between accounting information system effectiveness and accounting timeliness. The results show that IT Supported moderate the effect of strategic planning benefit and unique information source on information timeliness ([b.sub.22] = 0.24, p < 0.05; [b.sub.24] = -0.18, p < 0.05) but doesn't moderate the relationship between accounting practice quality, internal control efficiency, valuable activity linkage and information timeliness ([b.sub.20] = -0.07, p > 0.05; [b.sub.21] = 0.23, p > 0.05; [b.sub.23] = -0.06, p > 0.05). Thus, Hypotheses 8b is supported.

6. CONTRIBUTIONS AND FUTURE DIRECTIONS FOR RESEARCH

6.1 Theoretical Contributions and Future Directions for Research

The study provides important theoretical contributions expanding on previous knowledge and literature of accounting information system effectiveness. For preceding the field theoretically, this research is one of the first known studies to suggest five dimensions of accounting information system effectiveness namely accounting practice quality, internal control efficiency, the strategic planning benefit, valuable activity linkage, unique information source. In addition, the conceptual model of this study is evolved from the application of a resource-based view of a firm. In view of accounting information system effectiveness as a firm-specific resource, it is a new perspective different from the previous perspective. Moreover, this is a new contribution for academic research to extend the understanding of the subject of accounting information system effectiveness in development countries specially Thailand.

6.2 Managerial Contribution

This study helps CEOs understand the effect of accounting information system effectiveness and accounting information usefulness via information trust and information timeliness as mediators. Moreover, it uncovers the dimension of accounting information system effectiveness namely, accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and unique information source that helping CEOs to understand the effectiveness of accounting information system characteristics. Furthermore, this study provides evidence that firms which use IT will increase trust and timeliness of accounting information. To survive in a highly competition global market, the accounting information system effectiveness is very necessary because the result of accounting information system effectiveness is providing useful accounting information that is necessary to strategic planning and other decision making of the firm.

7. CONCLUSION

With respect to the benefit of accounting information to supported decision making, this study needs to provide clear understanding of its effects on accounting information system effectiveness. Thus, the objective of this study is to investigate the effects of accounting information system effectiveness on accounting information usefulness via information trust and information timeliness as mediators. Accounting information system effectiveness includes five dimensions, namely, accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and unique information source. Accounting executives of Thai listed-firms are samples of the study. The results indicate that accounting practice quality has a positive effect on information trust and timeliness and valuable activity linkage has a positive relationship with accounting timeliness. Moreover, both information trust and information timeliness have positive influence on accounting information usefulness. For the influence of a moderating variable on the aforementioned relationships, the IT Supported moderate the relationship between accounting practice quality, internal control efficiency, strategic planning benefit, valuable activity linkage and information trust and moderate the relationship between strategic planning linkage, unique information source and information timeliness. Accordingly, the accounting information system which has accounting practice quality and valuable activity linkage is enhancing the accounting information usefulness by improving trust and timeliness of accounting information.

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Chaiyot Sumritsakun, Maejo University, Thailand

AUTHOR PROFILES:

Dr. Chaiyot Sumritsakun earned his Ph.D. at Mahasarakham University, Thailand in 2009. Currently he is a lecturer of accounting at Faculty of Business Administration, Maejo University, Thailand.
TABLE 1
RESULTS OF MEASURE VALIDATION

Items                                        Factor     Cronbach
                                            Loadings      Alpha

Accounting Practice Quality (APQ)          0.63-0.89      0.82
Internal Control Efficiency (ICE)          0.75-0.87      0.83
Strategic Planning Benefit (SPB)           0.81-0.92      0.89
Valuable Activity Linkage (VAL)            0.87-0.90      0.91
Unique Information Source (UIS)            0.83-0.92      0.81
Information Trust (ITR)                    0.79-0.91      0.86
Information Timeliness (ITL)               0.63-0.87      0.82
Accounting Information Usefulness (AIU)    0.85-0.90      0.90
IT Supported (ITS)                         0.89-0.96      0.92

TABLE 2
DESCRIPTIVE STATISTICS AND CORRELATION MATRIX

Variables      APQ        ICE        SPB        VAL        UIS

Mean           4.07       3.91       4.10       3.64       3.65
S.D.           0.49       0.55       0.51       0.73       0.72
APQ
ICE          0.74 **
SPB          0.68 **    0.74 **
VAL          0.56 **    0.68 **    0.69 **
UIS          0.40 **    0.55 **    0.49 **    0.47 **
ITR          0.65 **    0.65 **    0.64 **    0.56 **    0.46 **
ITL          0.62 **    0.61 **    0.63 **    0.59 **    0.47 **
AIU          0.47 **    0.45 **    0.55 **    0.43 **    0.35 **
ITS          0.50 **    0.49 **    0.55 **    0.40 **    0.35 **
Size         0.10       0.00      -0.01      -0.07       0.19 *
Age          0.01      -0.04      -0.03      -0.03      -0.05

Variables      ITR        ITL        AIU       ITS      Size     Age

Mean         4.22       4.05       4.20      4.30     2.00     3.67
S.D.         0.45       0.48       0.50      0.61     1.30     0.72
APQ
ICE
SPB
VAL
UIS
ITR
ITL          0.72 **
AIU          0.62 **    0.67 **
ITS          0.58 **    0.55 **    0.48 **
Size         0.03       0.08       0.09      0.01
Age          0.10       0.06       0.12      0.08    -0.01

* p<.05, ** p<.01

TABLE 3
RESULTS OF REGRESSION ANALYSIS

 Independent                        Dependent Variables
  Variables              ITR                   ITL             AIU

   Constant       -0.50      -0.38      -0.42      -0.48     -0.40
     APQ           0.30 **    0.21 *     0.28 *     0.16
     ICE           0.16       0.17       0.06       0.05
     SPB           0.19       0.11       0.18       0.13
     VAL           0.10       0.11       0.21 *     0.23
     UIS           0.12       0.13       0.13       0.11
     ITR                                                      0.29 **
     ITL                                                      0.45 **
     ITS                     0.24 **                0.25 **
   APQxITS                  -0.21 *                -0.07
   ICExITS                   0.43 *                 0.23
   SPBxITS                   0.18 *                 0.24 *
   VALxITS                  -0.20 *                -0.06
   UISxITS                  -0.10                  -0.18 *
  Firm Size      -0.01      -0.05        0.03       0.01      0.04
   Firm Age       0.14       0.11        0.10       0.09      0.09

    Adjust        0.54       0.64        0.52       0.61      0.49
  [R.sup.2]

* p<.05, ** p<.01,
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