IMPACT OF DIGITAL ACCOUNTING SYSTEMS’ QUALITY ON THE DECISION-MAKING QUALITY OF THE BANKING INDUSTRY IN SRI LANKA

Abstract

The digital accounting system (DAS) has evolved as a result of digital technology advancements and uses by corporate management to make economic decisions. Recently, the DASs’ development has raised their impact on the decision-making quality (DMQ), and it can be identified that there is a need to evaluate the effect of the digital accounting system quality (DASQ) on the DMQ of the banking industry in Sri Lanka. Accordingly, initially, assessed the level of the DASQ in the Sri Lankan banking industry; secondly, investigated the difference between the DASQ in private and public banks in Sri Lanka; and thirdly, evaluated the impact of DASQ on DMQ of the Sri Lankan banking industry. The primary data were collected by a self-administered questionnaire given to 155 executive-level employees, including 78 public and 77 private banks employees with knowledge and experience in DASQ, followed a quantitative approach and employed one sample t-test, independent-sample t-test, correlation and multiple regression analysis. One-sample t-tests show that the DASQ is perceived to be at a satisfactory level on an overall basis in terms of data quality, information quality and system quality. Further, it revealed a significant difference between DASQ in private and public banks. Finally, the results suggested that DASQ significantly impacts the DMQ. Accordingly, banks may strengthen DMQ by maintaining high quality DASs. Thus, it recommends bankers to enhance DASQ with advanced digital technologies. Further, policymakers may introduce national policies to adopt DASs, whereas regulators may revise banking regulations to improve DASQ and to ensure the DASs’ security.