Accounting information system and financial performance of Commercial Banks in Kampala, Uganda

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Kampala International University, College of Economics and Management
This study was about an assessment of the impact of computerized information systems on the financial performance of selected commercial banks in Kampala; a case of; Centenary bank, DFCU bank And Stanbic bank, Kampala- Uganda. The study was guided by three objectives; (i) To investigate the relationship between Accounting Information System hardware and Profitability of commercial banks in Kampala, Uganda, (ii) To establish the relationship between Accounting Information System Software and Liquidity of commercial banks in Kampala, Uganda and (iii) To establish the relationship between Accounting Information system Personnel and productivity of Commercial banks in Kampala, Uganda. The study employed both probability and non-probability sampling techniques i.e. simple random sampling and purposive sampling techniques to select respondents. The population targeted a study population of 160 respondents of whom a sample of 113 respondents who were employees of the selected commercial banks in Kampala-Uganda. The study employed both purposive and random sampling techniques to select the study sample size. The data collected were analyzed using SPSS. The study however concluded that, determining the efficiency and effectiveness in the implementation of the operational activity of the bank is achieved through the output of accounting information systems; the role of accounting information systems in the control of short-term activities is strengthened by using other methods of control such as decentralization or accounting responsibility. This study recommends that, there is need to harmonize and standardize the deployment of accounting software packages in the banks to engender uniformity and assist the regulatory authorities in their supervisory roles, and emphasized that, the poor management of the accounting information system due to technical problems, communication problems, and poor training and maintenance culture should overcome because the said failures may result into low productivity, loss of the information technology inventory as well as loss of important and confidential data.
A thesis submitted to the college of Higher Degrees and Research in partial fulfillment of the requirements for the Award of the Degree Masters of Business Administration of Kampala International University.
Accounting information system, Financial performance, Commercial Banks, ,Uganda