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,