The mediating role of accounting disclosure in the influence of AIS on decision-making: A structural equation model

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Abstract

The current study aims to investigate the influence of accounting information system (AIS) elements, including human resources, physical resources, and financial data, in delivering the organization to a suitable decision-making process through the mediating role of well-built accounting disclosure. The study applies its model to the commercial banks listed in the Jordanian market at the end of 2019. A quantitative approach was adopted and a questionnaire was applied on 171 financial managers and accounting department heads within 21 commercial banks in Jordan. Based on the results of a structural equation model, the main hypothesis was accepted referring to the positive influence of AIS elements of human resource, physical resource, and financial data on organizational decision-making that is attributed to accounting disclosure within commercial banks in Jordan. These results show the importance of AIS in decision-making and encourage companies to adopt modern AIS in order to help them improve the quality of accounting information. The study recommended focusing on increasing skills and knowledge of accounting and financial managers within banks on the multiple ways of benefitting from AIS applications, this can include holding conferences, seminars, and workshops.

Keywords: Accounting Information System, Disclosure, Credibility, Relevance

Authors’ individual contribution: Conceptualization — A.Q. and A.B.; Methodology — A.Q. and A.B.; Investigation — A.Q. and A.B.; Resources — A.Q. and A.B.; Writing — Original Draft — A.Q. and A.B.; Writing — Review & Editing — A.Q. and A.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: N2, M2, M4, O1

Received: 09.02.2021
Accepted: 06.05.2021
Published online: 07.05.2021

How to cite this paper: Qatawneh, A., & Bader, A. (2021). The mediating role of accounting disclosure in the influence of AIS on decision-making: A structural equation model [Special issue]. Journal of Governance & Regulation, 10(2), 204–215. https://doi.org/10.22495/jgrv10i2siart2