Affiliation:
1. College of Business Administration A'Sharqiyah University (ASU) Ibra Oman
2. Department of Accounting, Faculty of Commerce and Economic Hodeidah University Al Hudaydah Yemen
3. Department of Accounting, College of Business Administration Prince Sattam Bin AbdulAziz University Al‐Kharj Saudi Arabia
4. Department of Business Technology, Business School Al‐Ahliyya Amman University Amman Jordan
5. Hourani Center for Applied Scientific Research, Al‐Ahliyya Amman University Amman Jordan
Abstract
AbstractThis empirical investigation explores the impact of the digital accounting system (DAS) on corporate governance (CG). The rapid advancement of technology has revolutionized various aspects of business operations, including accounting processes. The transition from traditional manual accounting systems to digital platforms has been accompanied by significant changes in corporate governance practices. This study aims to investigate the influence of DAS effectiveness (bookkeeping system, DAS security, IFRS adoption, and budgeting system) and the success of DAS (system quality, information quality, and service quality) on CG. The study determined the relationship by conducting a questionnaire survey of 264 senior managers, accountants, and department heads of pharmaceutical companies in Yemen. Partial Least Squares (PLS) was used for data analysis. The results supported all assumed relationships except the relationship between the budgeting system and CG. Specifically, unlike all supposed relationships, the budgeting system had no significant impact on CG. Despite the fact that prior studies have investigated these issues from different aspects in developed countries, the evidence in less developed countries is still unknown. Further, revisiting DAS and CG aspects with different new insights and measures, particularly bookkeeping system, DAS security, IFRS adoption, budgeting system, system quality, information quality, and service quality, has not been the subject of prior studies. As a result, the present study bridges a serious gap in the existing stock of knowledge in DAS and CG studies. Moreover, this piece of research has useful implications for managers, investors, practitioners, academicians, and decision‐makers.
Subject
Finance,General Business, Management and Accounting
Reference105 articles.
1. What lies beneath? Financial reporting and corporate governance in Australian banks;Abraham A.;Asian Review of Accounting,2008
2. Corporate governance and business performance: Evidence for the Romanian economy;Achim M. V.;Journal of Business Economics and Management,2016
3. The impact of corporate governance on financial performance: A cross‐sector study;Affes W.;International Journal of Disclosure and Governance,2023
4. A comparison of partial least square structural equation modeling (PLS‐SEM) and covariance based structural equation modeling (CB‐SEM) for confirmatory factor analysis;Afthanorhan A.;International Journal of Engineering Science and Innovative Technology,2013
5. Corporate governance consequences of accounting scandals: Evidence from top management, CFO and auditor turnover;Agrawal A.;Quarterly Journal of Finance,2017