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International Journal of Management (IJM)

Volume 12, Issue 5, May 2021, pp. 72-85, Article ID: IJM_12_05_007

Available online at https://iaeme.com/Home/issue/IJM?Volume=12&Issue=5

ISSN Print: 0976-6502 and ISSN Online: 0976-6510

DOI: 10.34218/IJM.12.5.2021.007

© IAEME Publication Scopus Indexed

COMPUTERIZED ACCOUNTING SYSTEM AND

PERFORMANCE OF UNIVERSITIES IN

SOUTHWEST, NIGERIA

OLAOYE Clement Olatunji

Department of Accounting, Faculty of Management Sciences,

Ekiti State University, Ado Ekiti, Nigeria

DADA David Olusegun*

Department of Accountancy, School of Business,

Federal Polytechnic Ado Ekiti, Ekiti State, Nigeria

*Corresponding Author

ABSTRACT

The introduction of Computer Accounting System (CAS) is expected to lead to

effective accounting operations for the organizations. Despite the several benefits of

CAS, incidences of fraudulent activities and untimely delivery of financial reports are

rampant in public institutions most especially Federal Universities in Nigeria. This

raises the question of whether the introduction of CAS has enhanced the efficiency of

accounting-related work and the overall organization performance. The study examined

computerized accounting system and performance of universities in Southwest, Nigeria.

The study adopted a descriptive research survey design. Population of the study covered

all the 779 staff in the Bursary Units of all the federal universities in the Southwest

region of Nigeria, out of which 271 were sampled using convenience sampling

techniques. An adapted close-ended questionnaire, subjected to validity and reliability

test, was used to elicit information from the sampled respondents and thereafter,

Pearson correlation and multiple regression were used for the analysis. The result

reveals that all the predictor variables exert a positive effect on the performance of

universities in the Southwest region of Nigeria with the following regression coefficients

of 0.627, 0.098, 0.114, 0.442 and 0.334 for automated data-processing component,

internal control component, automated reporting component, relational database

component and enhancing technologies respectively. However, automated data-

processing component, relational database component and enhancing technologies

exert a positive and significant effect on performance to the tune of 0.000<0.05,

0.003<0.05 and 0.035<0.05, as against the insignificant positive effect of internal

control component and automated reporting component with their respective

probability values of 0.293>0.05 and 0.139>0.05. It was established that there existed

a statistically significant effect of computerized accounting system on the performance

Computerized Accounting System and Performance of Universities in Southwest, Nigeria


of universities in the southwest region of Nigeria. It was therefore recommended that

government should establish a commission on ICT sector to regulate and see the full

implementation of Computerized Accounting system in all institutions in Nigeria.

Key words: Computerized Accounting System, Performance, Automated Data-

Processing Component, Internal Control Component, Automated Reporting

Component, Relational Database Component and Enhancing Technologies

Cite this Article: OLAOYE Clement Olatunji and DADA David Olusegun,

Computerized Accounting System and Performance of Universities in Southwest,

Nigeria, International Journal of Management (IJM), 12(5), 2021, pp. 72-85.

https://iaeme.com/Home/issue/IJM?Volume=12&Issue=5

1. INTRODUCTION

The importance of a vibrant, transparent and healthy organization to the growth and

development of a nation cannot be overstressed. It ensures the smooth running of economic

activities. In the educational sector, universities are often seen as one of the most powerful

weapons to ameliorate the imbalances of a nation through which the living standards of people

are made better. This is because education, in its general sense, is a form of learning through

which skills, knowledge, and habits of a group of persons are transferred from one generation

to the next through teaching, learning and research processes. Thus, education remains the

means with which social mobilization and socio-economic development are achieved through

colleges, polytechnics, and universities all over the world. The continuous development of

nations is therefore dependent on the performance of universities. Every organization measures

its performance to know the position of the organization in terms of the attainment of the stated

objectives and the effectiveness and efficiency of the manager. Adeliza (2017) believed

performance to be the way organizations carry out their objective into effect which is being

measured in different ways designed by organizations. In the opinion of Quang (2019),

performance is the result of documenting the connection between what organizations do in

terms of quality management dimension and the results they achieve in several types of

outcomes. This explained that performance is the accomplishment of a given task measured

against preset known standards of accuracy, completeness, cost and speed. In the context of this

study, performance is a means of measuring the efficiency of universities in terms of quality

and timely delivery, cost reduction and improved decision making. Organizational performance

is a function of many factors, part of which is the accounting system. Accounting system is the

art of providing financial information for interested users to make an informed decision (Rehab,

2018). Accounting system could be manual or computerized. It is manual when accountants use

journals to streamline the posting procedures. It is a system of accounting where accountant

uses their hands to post financial transactions to the general ledger, journal and worksheet, while

computerized accounting system is an accounting system where financial transactions are

processed with the aid of computerized packages (Ayman & Barjoyai, 2019). It is an accounting

system through which reports are generated quickly for budget and variance analysis. To this

end, it’s an accounting system that facilitates organizational performance.

Computerized accounting systems (CAS), which revolves around the usage of related

technologies and computers, structures, and approaches in the accounting process and function,

to help overcome the downsides of manual accounting systems. The technological expansion

across the globe seemed to have forced institutions to embrace the use of Computerized

Accounting System (CAS) and productively manage these developments. Akamanwam (2020)

opined that the introduction of CAS is expected to lead to effective accounting operations for

the organizations. However, despite the several benefits of CAS, incidences of fraudulent

activities and untimely delivery of financial reports are still rampant in public institutions in

OLAOYE Clement Olatunji and DADA David Olusegun


Nigeria. This raises the question of whether the introduction of CAS has helped to increase the

efficiency of accounting-related work and the overall organization performance. A fair attempt

has been made by scholars across the globe on the pros and cons of computerized accounting

systems, their effectiveness and usage to advance organizational performance. For instance;

Agbim (2013), Abukaker (2013), Shirai (2015), Akande (2016), Akesinro and Adetoso (2016),

Al-Saqhah (2016), Ahmed (2017), Khan (2017), Adeliza (2017), Rehab (2018), Quang (2019),

Adong (2019), Ayman and Barjoyai (2019) and Ndalahwa (2019) have examined the nexus

between computerized accounting system and performance of organizations. However, most of

these studies were resolved in Small and Medium Scale Enterprises, manufacturing firms and

banks and not public universities which is the focus of this study. In the same vein, none of the

studies carried out in this context in Nigeria jointly captured computerized accounting system

with automated data-processing component, internal control component, automated reporting

component, relational database component and enhancing technologies. This study is therefore

an extension of other studies that used one or two of the aforementioned components to capture

computerized accounting system. An effective approach for measuring the efficiency of

computerized accounting system should consider the inherent operation and features of the

accounting systems than those that only focus on the perceived usefulness. This is an indication

that there is a knowledge gap to be addressed as regards the effect of all the structural

components of computerized accounting system on the performance of universities. The

assessment of how performance could be enhanced through computerized accounting system

is significant to the accounting profession since it might help accounting professionals to adopt

the best accounting system for organizational efficiency. Also, this study is significant because

of the CAS measurement tool presented that is different from the old-style measurement

approach that measures computerized accounting system based on perceived benefits and ease-

of-use of accounting systems.

2. LITERATURE REVIEW

2.1. Computerized Accounting System

Accounting profession is as old as mankind. Since the existence of man, so also accounting

process has been in place. Several scholars have defined accounting from different points of

view. Onaolapo and Odetayo (2012) defined accounting as the process of identifying,

collecting, classifying, grouping, recording, analyzing, interpreting and communicating

financial information for users to make decisions. This underscores that accounting is the chain

of activities towards the management of financial information for decision making. Every

organization must operate a definite accounting system to report its financial position to the

stakeholders for better decision-making and other policy implementations. Accounting system

is described by Ali, Umar and Bakar (2016) as an organized set of both manual and

computerized accounting standards, procedures, controls and methods established to collect,

record, group, analyze, summarize, communicate and present adequate and timely financial

information for quick and direct management decisions. The globalization of Informational

Technology (IT) appeared to have taken the center stage in the accounting processes.

Organizations embrace computerized accounting systems to improve their operational

activities. Adeliza (2017) defined computerized accounting system as a financial system that

uses specialized automated machines called calculators and computer system in collecting,

grouping, analyzing, interpreting and presenting information to its user for decision making.

Ahmed (2017) asserted that this system of accounting ease the analysis of stored financial

information within a short period.

Computerized Accounting System involves the mechanization of accounting functions to

assist organizations in making good timely and productive decisions. Therefore, the



implementation of computerized accounting systems is saddled with a decisive role function to

ensure organizational success in the competitive world. Ndubuisi, Chidoziem and Chinyere

(2017) stressed that it is an automated process of simplifying the inflow and outflow of financial

information and the mechanization of accounting tasks such as database recording and report

generation. Ali, Umar and Bakar (2016) noted that the components of the computerized system

include, software, hardware, databases, brain-ware, network processes and technologies. The

focus of this study centered on structural components of CAS in relation to automated data-

processing component, internal control component, automated reporting component, relational

database component and enhancing technologies. These components were discussed in

subsequent paragraphs.

Automated data processing components are software packages built on accounting

procedures and principles that allow the system to complete tasks automatically without errors.

Al-Saqhah (2016) argued that automated data processing components ensure the delivery of

information for improved decision making. It eases the possibility of carrying out some

technical and tedious tasks and assignments related to accounting and auditing functions in

Universities. Such tasks include financial data capturing, recording of financial transactions and

related digits, and reconciliation of accounts without human interference with a higher level of

accuracy and speed. Therefore, automated data processing is a vital structural component of

computerized accounting systems towards improved performance of Nigerian universities.

Akamanwam (2020) described internal controls as the procedures, systems and methods

employed to authorize financial transactions and safeguard assets in an organization. Adong

(2019) defined internal control component as a system established by the management team to

make a reasonable assurance towards the realization of established organizational aims and

objectives. Hence, the main purpose of internal control component is to guarantee the efficiency

of operational activities, quality reporting and full compliance with laws and regulations.

Therefore, computerized accounting systems should have intrinsic internal control components

that are practicable.

Generally, an accounting system, manual or computerized system, centers on data

collection. Akamanwam (2020) opined that this form of CAS is the component responsible for

storing and maintaining data. In support of this, Onaolapo and Odetayo (2012) disclosed the

fact that Relational Database Management Systems (RDBMS) focused on the storage,

management and utilization of data set and reliable information in a computerized environment.

This explained that computerized accounting system is glued by a relational database

management component that balances the nexus between the numerous sets of data, files and

records kept in the system. Thus, ensuring data integrity, independence, scalability and security.

The inefficiency of the RDBMS might result in the ineffectiveness of the reporting functions

and data processing functions of the system, thereby impeding the ideal performance of the

entire computerized accounting system. Relational database component becomes an important

component of CAS in accounting professionalism.

The most significant feature of a computerized accounting system is its capability to

produce result/useful information automatically in reports form based on defined reporting

options and parameters (Akamanwam, 2020). This component works in harmony with the

relational database management component for the recovery and consumption of a relevant set

of data and information for every report to enhance the decision-making of the management.

Thus, the automated reporting component is of great significance to the computerized

accounting system as its effectiveness and inefficiency would strengthen the system's strategic

objective which is to ensure the provision of reliable information for decision making to the

various stakeholders of the university.



Evidently, the aforementioned components of computerized accounting system which

include automated data processing, internal controls, automated reporting components and

relational database are enclosed in the accounting software architecture framework. They are

all organized to influence the performance and reliability of CAS in its related functions. In the

context of this study, the aggregate of the entire components and other enhancing technological

tools which includes computer firmware, hardware, accessories and applications such as cloud

and web technologies, networking infrastructures, imagine and printing equipment and many

more are referred to as enhancing technologies. These components in summation are required

for the effective performance of organizations.

In the view of Ibrahim (2019), performance results to a state of competitiveness achieved

through a high level of efficiency and productivity. Organizational performance mostly focused

on the ability and capability of the organization to efficiently utilize the available means to

achieve accomplishments consistent with the set objectives, as well as considering their

significance to its users. Effective institutions with high standard of performance level keep

their stakeholders (shareholders, board of management, and its environment) demands satisfied

(Ibrahim, 2019). A high level of institutional performance is a fundamental and essential factor

contributing to the enhancement of effective planning and control of management. In fact, it

can be claimed that performance allows universities to succeed through performance

monitoring, motivation enhancement, improvement of communication, and problem diagnosis

(Ahmed, Zakaree & Kolawole, 2016). In the context of this study, organizational efficiency is

used to capture performance of universities in Southwest, Nigeria. Organizational efficiency is

one of the basic yardsticks for performance measurement adopted in most tertiary institutions

across the universe. According to Khan (2017), organizational efficiency is the evaluation of

some other aspect of unit performance (such as money space and time) with the costs sacrificed

for the achievement of a desire/goal. It is mostly employed to measure the aspects of a

process/system other than just tangible/physical output. In the context of tertiary institutions

(University), institutional efficiency is the maximization of output (Output-oriented) for a given

input (Input-oriented) (Bawa, Mustapha & Ahmed, 2018). Quang (2019) reported that

modernized accounting system saves time and cost in Nigerian Tertiary institutions hence boost

the institutional efficiency in their daily routine.

The relationship between computerized accounting system and organizational performance

is depicted in figure 1:

Structural Components of CAS Performance of Organization

Figure 1: Conceptual Framework / Source: Authors’ Design (2021)



2.2. Theoretical Underpinnings

Theoretically, this study was underpinned by diffusion of innovation theory and resources-

based theory. Diffusion of innovation theory was propounded by Rogers in 2003. Rogers

explained that innovation is an introduction of any thought or practice that is perceived to be

new. The theorist explained that innovation has two phases, generation of ideas and the

conversion of the ideas into a useful application. The process in which a new idea is

communicated through certain channels over time among the members of a social system is

popularly known as diffusion. In line with this, it can be agreed that computerized accounting

system is an innovation in the accounting world. Although, it is the same computer system used

in a lot of places for different functions, using it to carry out accounting functions is an

innovation. Ndubuisi, Chidoziem and Chinyere (2017) agreed that the use of computer software

to carry out accounting functions in Universities is not new in the educational system, especially

in Nigeria. Innovation is not only about creating a new invention or product; it is also about

improving old models. This explained that computerized accounting system is not exactly an

innovation. This is because computer has been in use to calculate and process information since

its invention. However, the basic innovation of computer in accounting, is in the creation of

software packages that are able to properly carry out accounting activities. Despite the accuracy

of the assumptions of this theory, it has been criticized by some scholars. Rogers (2003) asserted

that these systems of innovation are problematic to control and direct due to their disordered

institutional character, broad scope and longevity. The relevance of this theory to the research

lies in the fact that computerized accounting system which serves as the independent variable

in this study is an innovation in the educational sector. Evidently, all Nigerian universities have

adopted the modern accounting system to report their financial statement for organizational

efficiency.

Propounded by Barney (1995), resource-based view (RBV) is a well-known theoretical

model used in the field of social and management sciences. The resource-based view (RBV)

offers critical and fundamental insights into why firms with valuable, rare, inimitable, and well-

organized resources may enjoy superior performance. The theory centers on the judicious

allocation and utilization of scarce and limited resources available in an organization towards

the achievement of the set or predetermined aims and objectives. Relating to this study, RBV

proposed that modern-day universities should be equipped with accounting software, capable

of increasing their efficiency. Computerized accounting system is a resource of tertiary

institutions and it is expected to improve the efficiency of collecting, grouping, analyzing,

interpreting and presenting information for decision making.

This theory has accurate assumptions, yet it has been criticized on various grounds. Adelisa

(2017) posited that the resource-based view lacks clarity concerning its core premise and its

lack of any clear boundary weakens fruitful debate. Moreover, due to the theory’s lack of

specificity, one can invoke the definition-based or hypothesis-based logic of the theory

(Adelisa, 2017). This theory is relevant to the study because the performance of tertiary

institutions especially universities is influenced by the resources available in the institution. In

universities, most of their activities like recording, securing of financial and auditing reports

and so on are interconnected and linked together. The theory is relevant to this study because

universities need to competitive in their performance to achieve the stated objectives.



2.3 Empirical Review

Several studies have been carried out to examine the nexus between computerized accounting

system and organizational performance at the local and international level. Akande (2016),

Ndubuisi, Chidoziem and Chinyere (2017), Akesinro (2016) and Adelisa (2017) reported that

the manufacturing industry performance could be enhanced by computerized accounting

system. Thereby, a rise in the computerized accounting system will result to an increase in their

performance. In a similar study, Mahesh (2015) and Abubakar (2013) revealed the prospects of

CAS implementation on the financial performance deposit money banks’ financial performance

could be stimulated by computerized accounting system. Consequently, Rehab (2018), Agbim

(2013), Khan (2017), Al-Saghah (2016) and AbdiSalam, Zaini and Hawa (2019) reported that

the perceived financial status of most companies is enhanced by the adoption computerized

accounting information systems

In the studies of Quang (2019), Ali, Omar and Bakar (2016), Ayman and Barjoyai (2019),

Asep, Acip and Hamidah (2014), it was reported that computerized accounting system has a

significant effect on progressive performance of organizations. It was disclosed that the

application of CAS has a significant effect on the quality of accounting information and that

the accounting information quality significantly influences managerial performance. On the

contrary, Ahmed (2017) and Onaolapo and Odetayo (2012) reported that a positive but

insignificant relationship exist between computerized accounting system and organizational

performance. Furthermore, using ANOVA analysis model, Oladipupo and Ajape (2013), Bawa,

Mustapha and Ahmed (2018) and Ndalahwa (2019) reported that there is significant difference

in receivable accounts management using CAS amongst SMEs in Nigeria. Ayman and Barjoyal

(2019) reported that there exist a positive and significant relationship between CAS and

performance of banking industry. Adong (2019) reported that computerized accounting system

provides the management with a comprehensive and up-to-date account balance information

since balance is posted as the transaction occurs, hence revealed the financial performance of

banking industry. Nwinee, Akpos, Vincent and Ibinabo (2016) and Shiraj (2015) reported that

technological advance has the capacity to engender increase in the performance of

organizations. None of these worked on the Computerized Accounting System and

Performance of Federal Universities in Nigeria

3. METHODOLOGY

The study adopted descriptive research design of a survey type. The population of the study

covered all the 779 staff in the Bursary Units of the all the federal universities in the Southwest

region of Nigeria. Consequently, using Taro Yamane (1967) model, the sample size for this

study was 271 respondents. The Yamane model (1967) formula is given as:

n = 𝑁

1+ 𝑁(𝑒)2

Where: n = sample size, N = the population size, e = level of significance. Hence, for the

population of 779, the sample size was 271. The study adopted a proportionate and convenience

sampling techniques. Proportionate sampling technique was used to determine the sample for

each institution while convenience sampling technique was used to determine the respondents

with which the questionnaires were administered to promote voluntary participation. Table 1

captured the breakdown population of the study and sample size.



Table 1 Sample Size of the Study

State(s) Study population Sample Size

University of Lagos 144 n = 144(271)

779 = 50

Federal University of Agriculture, Abeokuta 128 n = 128(271)

779 = 45

University of Ibadan 141 n = 141(271)

779 = 49

Obafemi Awolowo University 138 n = 138(271)

779 = 48

Federal University of Technology, Akure 122 n = 122(271)

779 = 42

Federal University, Oye-Ekiti 106 n = 106(271)

779 = 37

Total 779 271

Source: Author’s Computation, 2021.

A close-ended questionnaire adapted from Akamanwam (2020) was used to examine the

connection between computerized accounting system and performance federal universities in

Nigeria. As earlier stated, computerized accounting system was captured with automated data-

processing component, internal control component, automated reporting component, relational

database component and enhancing technologies while organizational performance was

captured with organization efficiency. Table 2 captured the measurement of the variables.

Table 2 Measurements of Variables

S/N Variables Measurements

1 Automated data-processing component Seamless data processing

Data validation

Transaction posting

Accounting balancing

Account reconciliation

2 Internal control component Access control

Segregation of duties

Accuracy of checks

Security control

Audit trails

3 Automated reporting component Seamless reporting

General ledger and trial balance reports

Financial statements

Multi-format options

Comparative reporting

4 Relational database component Large storage facilities

Data maintenance and retrieval

Data independence and integrity

Data back-up and recovery

Scalability and concurrence access to data

5 Enhancing technologies. Network configuration

Cloud computing

Point of sales interface

Easy attachment of documents and upload

Email and SME interface

6 Organization Efficiency Improved decision making

Cost reduction

Timely and quality information

Time saving

Reliability of information

Source: Adopted from Akamanwam (2020)



Out of the four types of validity, the instrument was subjected to face and content validity.

The face validity was determined by giving the research instrument to experts to judge the

appropriateness of each item of the instrument. Their comments were used to obtain items that

were further subjected to content validity by the same experts. To ascertain the reliability of the

instrument, a pilot study was conducted where 20 copies of the questionnaire were administered

on the Accounting staff of Bursary Department of Ekiti State University, Ado Ekiti, Ekiti State.

After the administration, Cronbach’s Alpha was used to ascertain the internal constituency of

the instrument’s scale.

Table 3: Reliability Coefficient

S/N Variables Reliability Coefficient

1 Automated data-processing component 0.772

2 Internal control component, 0.751

3 Automated reporting component 0.808

4 Control Activities 0.797

5 Relational database component 0.826

6 Enhancing technologies 0.833

Source: Authors Compilation (2021)

The instrument was administered by the researchers with the help of three research

assistants who were subjected to training on how to administer questionnaire successfully.

Pearson Correlation was used to examine the relationship between the predictor variables and

the outcome variable, and Multiple Regression was used to test the hypotheses at 0.05 level of

significance. The study adapted and modified one of the models used by Joyce, Isaac and Joseph

(2017) to examine the efficacy of accounting systems on the performance of public universities

in Kenya. Hence, the linear representation of the modified model is thus given thus:

PER = α0 + α1CAS + U………..……… (1)

Where PER is performance and CAS is computerized accounting system

However, the model was modified with the intention of attending to the gap created.In this

regard, computerized accounting system was captured with automated data-processing

component, internal control component, automated reporting component, relational database

component and enhancing technologies. Also, performance of universities was captured with

organization efficiency.

PERF = α0 + α1ADPC + α2INCC +α3AURC + α4REDC + α5ENTE + U (2)

Where: PER is Performance, ADP is Automated Data Processing Component, INCC is

Internal Control Component, AURC is Automated Reporting Component, REDC is Relational

Database Component, ENTE is Enhancing Technologies, α0 is Intercept, α1 – α5 is Coefficient

of independent variables and U is Error term.

3.1. Estimation Results

Pearson Correlation was used to examine the relationship between the predictor variables and

the outcome variable, and Multiple Regression was used to test the hypotheses at 0.05 level of

significance. However, before Pearson correlation and multiple regression analysis, normality

test, linearity test and heteroscedasticity test were carried out to fulfill the requirements of linear

regression.



Table 4 Normality and Heteroscedasticity Test Results

Normality Test

Shapiro-Wilk Stat Probability

0.955 0.466

Heteroscedasticity Test (Breusch-Pagan)

F-statistics Probability

0.676 0.375

Source: Data Analysis (2021)

The result revealed that there is no enough evidence to reject the error term of the estimated

model is normally distributed and constant variance of the error term, given that the probability

value is greater than 0.05. This, therefore, confirmed that the error term is normally distributed

and that there is no problem of heteroscedasticity in the error term of the estimated models.

3.2. Linearity Test

This is the assumption that the relationship between the variables is linear. The null hypothesis

states that the relationship is linear. Figure 2 depicted the matrix scatter plot graph with an

inserted line, showing the linear relationship. Deductively, it shows that there is a linear relation

between the outcome variables and the predictors. Hence, there is no enough evidence to reject

that the relationship is linear.

Figure 2

Table 5 Pearson Correlation Matrix

Variables PERF ADPC INCC AURC REDC ENTE

PERF 1

ADPC 0.436** 1

INCC 0.449* 0.229* 1

AURC 0.478** 0.544** 0.449** 1

REDC 0.444** 0.501** 0.381** 0.356**

ENTE 0.773** 0.221* 0.231* 0.486** 0.266* 1

Source: Data Analysis (2021) **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is

significant at the 0.05 level (2-tailed).

Presented in table 5 is the estimation results of Pearson correlation. The result shows that

performance of federal universities has a positive and significant relationship with all the



predictor variables (automated data-processing component, internal control component,

automated reporting component, relational database component and enhancing technologies).

This is an indication that both the outcome and the explanatory variables move towards the

same direction, reflecting that increase in computerized accounting system in terms of

automated data-processing component, internal control component, automated reporting

component, relational database component and enhancing technologies will engender a

corresponding increase in the performance of federal universities in the southwest region of

Nigeria. In the same vein, there exist a positive relationship between all the independent

variables.

Table 6 Multiple Regression Analysis

Dependent Variable: performance of Universities Variable Coefficient Std Error t-statistics Prob.

(Constant) 7.392 2.946 2.509 0.013

ADPC 0.627 0.220 3.784 0.000

INCC 0.098 0.093 1.056 0.293

AURC 0.114 0.234 1.080 0.139

REDC 0.442 0.165 3.060 0.003

ENTE 0.334 0.128 2.471 0.035

R-Square=0.661, Adjusted R-Square = 0.611 F-statistics=36.338, Prob(F-statistics) = 0.000

Source: Source: Data Analysis (2021).

Presented in table 6 is the estimation result of the regression analysis. The result reveals that

all the predictor variables exert a positive effect on the performance of federal universities in

the Southwest region of Nigeria with the following regression coefficients of 0.627, 0.098,

0.114, 0.442 and 0.334 for automated data-processing component, internal control component,

automated reporting component, relational database component and enhancing technologies

respectively. Automated data-processing component, relational database component and

enhancing technologies exert a positive and significant effect on performance to the tune of

0.000<0.05, 0.003<0.05 and 0.035<0.05, as against the insignificant positive effect of internal

control component and automated reporting component with their respective probability values

of 0.293>0.05 and 0.139>0.05. Adjusted R-square value reported in table 6 stands at 0.66. This

implies that about 66.1% of the systematic variation in the outcome variable can be explained

by all the independent variables. The F-statistics of 36.338 along its probability value of 0.000

showed that the model is statistically significant.

4. DISCUSSION OF FINDINGS

An attempt has been made to unravel the connection between computerized accounting system

and performance of federal universities in the southwest region of Nigeria. Based on the

multiple regression analysis, it was discovered that all the predictor variables exert a positive

effect on the performance of universities in the Southwest region of Nigeria with the following

regression coefficients of 0.627, 0.098, 0.114, 0.442 and 0.334 for automated data-processing

component, internal control component, automated reporting component, relational database

component and enhancing technologies respectively. This connotes that with just a 1% increase

in automated data-processing component, internal control component, automated reporting

component, and relational database component and enhancing technologies, performance of

federal universities would increase by 627, 0.098, 0.114, 0.442 and 0.334 respectively. The

inference of this discovery is that computerized accounting system, all other things being equal,

has the capacity to engender increase in the performance of federal universities in the southwest

region of Nigeria. This outcome gave credence to the tenets of resource-based theory that



centers on the judicious allocation and utilization of scarce and limited resources available to

attain the stated objectives. Computerized accounting system is an initiative that adds to the

available resources of institutions through with the performance of federal universities can be

improved.

It was equally discovered that automated data-processing component, relational database

component and enhancing technologies exert a significant and positive effect on the

performance of federal universities in Nigeria, as against the insignificant positive effect of

internal control and automated reporting components. The corollary of this discovery is that

while automated data-processing component, relational database component and enhancing

technologies have the capacity to significantly advance the performance of federal universities,

internal control and automated reporting components have no such capacity. This outcome gave

credence to the discovery of Akande (2016), Ndubuisi, Chidoziem and Chinyere (2017),

Akesinru (2016) and Adelisa (2017). They discovered that the performance of organizations

can be greaalty enhanced with computerized accounting system. Also, Quang (2019), Ali, Omar

and Bakar (2016), Ayman and Barjoyai (2019), Asep, Acip and Hamidah (2014), it was

reported that computerized accounting system has a significant effect on progressive

performance of organizations. On the contrary, Ahmed (2017) and Onaolapo and Odetayo

(2012) reported that a positive but insignificant relationship exist between computerized

accounting system and organizational performance.

5. CONCLUSION AND RECOMMENDATIONS

Evidently, a fair attempt has been made by scholars to reveal the effect of computerized

accounting system on the performance of organizations. However, only a few studies have been

resolved educational institutions like federal universities. This was the crux of this study. In

relation to the outcome of the analysis, it was established that there existed a statistically

significant effect of computerized accounting system on the performance of federal universities

in the southwest region of Nigeria. Specifically, it was concluded that while automated data-

processing, relational database and enhancing technologies components have the capacity to

significantly advance the performance of federal universities, internal control and automated

reporting components have no such capacity. Thus, it was recommended that universities that

still use manual accounting system should embrace the nitty-gritty of computerized accounting

system since it has the capacity to improve the efficiency of the organization. Universities

should consider computer accounting system as a means to make timely, quality and productive

decisions. Government should establish a commission on ICT sector to regulate and see the full

implementation of Computerized Accounting system in all institutions in Nigeria. Scholars

interested in a similar topic can examine the impact of computer accounting information system

on the budgeting system of the state institutions in Nigeria.

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