ACCOUNTING INFORMATION SYSTEM AND PROFITABILITY IN THE BANKING SECTOR

ABSTRACT

The purpose of this study was to investigate the effect of Accounting Information Systems (AIS) on bank profitability. The study used the primary research instrument through the administration of questionnaire to source data needed for the study. The study targeted a sample of two hundred (200) respondents, in which a total of 200 questionnaires were distributed and same number (200) was filled, retrieved, cleaned and used for this study. The data collected was analyzed using SPSS version 20.0 and descriptive statistics was used to present the results while regression test was employed to make findings on the research hypotheses. The findings revealed that system flexibility of AIS and system control of AIS were significantly related with bank profitability in the Nigerian banking sector, whereas, system sophistication of AIS, system effectiveness of AIS, and Quality of AIS were not significantly related with bank profitability in the Nigerian banking sector. Based on these findings, it was recommended that: banks invest in enhancing the flexibility of their AIS; banks should focus on strengthening the control mechanisms within their AIS; it is important for banks to invest in technological advancements within their AIS; banks continue to monitor and evaluate the effectiveness of their AIS; and it is advisable for banks to strive for high-quality AIS implementation.