ACCOUNTING INFORMATION SYSTEM AND FINANCIAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN KIGALI RWANDA
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The general objective of this study was to find out the contribution of accounting information on the performance of commercial banks. Specific Objectives were to evaluate the benefits of Accounting Information System in commercial banks; to determine the types of challenges that affect the use of accounting information system in commercial banks and to analyse relationship between accounting information system and performance of commercial banks.. Through this study, the researcher should increase the skills and knowledge in the field related to Accounting Information System (AIS) and financial performance of commercial banks in Rwanda. Other researchers need to carry out studies related to this topic should use it to get a useful literature review. This study adopted a descriptive-comparative research design, the target population of 947 was used. A sample population of 90 respondent’s derived using Yamane formula and 12 external auditors were used. The researcher used both stratified sampling method to formulate group and simple random sampling to select the respondents. Questionnaires was the major instruments of data collection, documentary analysis was used for secondary data. The analysis of the data was done using the statistical package for social sciences (SPSS). In addition, inferential statistics was used to regress the research variables in order to determine the relationship between the independent variable and the dependent variable . According to the first objective, benefits of accounting information, this study found out that 20% respondents confirmed that systematic records is among the benefits that selected commercial banks get from AI while 24% respondents confirmed business properties. In relation to the second research objective, the type of challenges that affects the use of accounting information system. The study revealed that, out of 102 respondents, 31 ( 30.4%) chose lack of recruitment of skilled staff, 8 (7.8%) chose lack of strategy formulation, 15 (14.7%) chose lack of human resource capacity, 17 (16.7%) chose lack of training, 14 (13.7%) chose lack of Monitoring& Evaluation, 5 (4.9%) chose Lack of recruitment of skilled staff and 12 (11.8%) chose all of the above challenges. From the study findings, financial performance = 0.52 + 0.915*Accounting Information System. The study recommended that accounting information should be analyzed by the professional employees as this will make commercial banks especially GT Bank, Ecobank and KCBR to perform well hence the growth of the organization since accounting information analysis requires competent people in analyzing how the organization is performing and also take corrective measures for better performance in the future.