The implementation of accounting information systems on the stock return and financial performance based on information technology (IT)

Abstract

This study investigates the influence of Accounting Information Systems (AIS) on stock return and financial performance. When it comes to organizations, AIS play a crucial part in the process of acquiring, processing, and communicating financial information. The efficient functioning of AIS has the potential to impact stock returns and overall financial performance, making it an essential area of research. The study employs a comprehensive analysis of relevant literature, empirical data, and statistical techniques to examine the relationship between AIS and stock return as well as financial performance. The findings of this study aim to provide insights into the extent to which AIS influences stock return and financial performance. A positive relationship between a well-functioning AIS and stock return is expected, given the importance of accurate and timely financial information in investors' decision-making process. Financial performance parameters including profitability, efficiency, and liquidity are all expected to benefit from a robust AIS. There are major practical and theoretical ramifications of this study. Companies may benefit from better decisions on AIS improvements, maintenance, and rollout if they have a firm grasp of how AIS affects stock performance and overall financial results. According to the data, the efficacy of the accounting information system based on IT has a P value of –0.009, while its t value is equal to 0.027. According to the findings, the return on assets (ROA) has a P value that is equal to –0.592, while its t value is equal to 0.13. Further, AIS's significance in evaluating a firm's financial health and making investment decisions may be better understood. As a result of analyzing how Accounting Information Systems affect stock return and financial performance, this study adds to the current body of information. The results will enhance our understanding of the role of AIS in shaping investment outcomes and financial success.