Determinants of the extent of usage of accounting information by Public Accounts Committee in Tanzania public corporations: Moderating role of effective communication.

Abstract

The objective of the paper is to examine determinants of the extent of usage of accounting information by the Public Accounts Committee in Tanzania public corporations moderated by effective communication. This study's guiding theories are an agency, accounting information usefulness, and communication. The study used a positivist philosophy, deductive approach, and cross-sectional survey design. The researcher used quantitative data analysis focused on 110 questionnaires made by PAC members and nonmembers. The Partial Least Square –Structural Equation Modeling [PLS-SEM] was used to support multivariate statistical analysis. The study reported a coefficient of determination (R2) of 0.584, implying that trust in accounting information, perception of quality of accounting information, knowledge of accounting information, and effective communication moderated by effective communication explain a 58.4% variation in the extent of usage of accounting information. The study results showed that trust in accounting information and knowledge of accounting information has a statistically significant positive impact on the extent of use of accounting information. The perception of the quality of accounting information and effective communication had a statistically insignificant positive effect on the extent of accounting information usage. Besides, the study results confirmed the absence of moderating effects of effective communication of accounting information on the relationships between determinants of accounting information usage and the extent of use of accounting information.