Licensed under Creative Common Page 903 (Azhar Susanto, 2008: 37). The value of information depends on the quality of the information presented (Azhar Susanto, 2008: 11). The quality of information refers to the quality of the output produced by the information system (DeLone and McLean, 1992). A qualityinformation (InformationQuality) according to Mc Leod and Schell (2007: 65) must have traits - traits relevant, accurate, timely and complete. This is in line with Sacer et al. (2006: 59) says that high qualityinformation is information that is timely, accurate and reliable. More (Wilkinson, 1999: 18) also said that qualityinformation has a characteristic, relevance, accuracy, timeliness, conciseness, clarity, quantifiable, and consistency. Specifically, managementaccountinginformation berkualita according to Morris and Chenhal (1985) is Broadscope, Timelines, Aggregation, and integration. In practice, masih` many problems about information that is not well integrated in the business entities as well as on non-business entities. In the business entities such as information received from the public through an integrated customer service. One cause of the phenomenon is not berkualitasnya managementaccountinginformation systems is a factor in the research ethics as Brenda Fresman (1999) which states that an increase in managementaccounting penekananya on emotional awareness found to be the strongest predictor of all sizes rated at the company both internally and externally , Thus, various companies are increasingly aware that the quality of information systems and the quality of working life, both can be improved by taking the approach that is centered on personal ethics (Kendall & Kendall, 2011: 9). The quality system is an inherent characteristic of the information about the system itself DeLone and McLean (2003). Information system applied in the company can be grouped in two (2) types of information systems that accountinginformation system and managementinformation system (James A.Hall, 2008: 2). Results of the study (Claudiu & Brandas, 2013), the use of accountinginformation systems in the context of risk management approach to control is the main component of the process of information control, audit and company information, as well as the emphasis on continuous inspection and using information technology, aims to develop in order to improve the efficiency of information technology, as well as ensuring the integrity, truth, accuracy and availability of financial statements.
Organizational structure is the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals (Jones, 2010). Organizational structure is formally dictated on how jobs and tasks are distributed and coordinated between individuals and groups within the company (Lussier, 2008). When managers develop or change an organization’s structure, they are engaged in organizational design, a process that involves decisions about four key elements: division of labor, hierarchy, span of control and line and staff (Starling, 2008). Therefore, the organizational structure always has influences on an enterprise's accountinginformation system, determining the type of information provided to managers at each level, so that they perform their management functions for the enterprise, such as information for short-term, long-term and strategic decision making. Stair & Reynolds (2011) argue that the organizational structure affects the application of software system in an enterprise’s managementinformation system. Similarly, in the study by Gurbaxani & Wang (1991), organizational structure is shown to have influences on the application of management software by providing information more accurately, exactly and flexibly. Dezdar & Ainin (2011) shows that organizational structure of an enterprise can have impact on its ERP system application. Specifically, the application of ERP system helps encouraging employees. Once an organizations decide to adopt ERP systems, they have to communicate to explain and justify their actions. What is important is how the business justification for the ERP system is translated to lower level employees so that they feel motivated to go along with the implementation and do not resist the changes that will occur. Implementing an ERP system encourages communication and can lead to more acceptances of these changes and the reduction of unnecessary worries. Al-Mashari (2003), Egdair et al. (2017) argue that ERP implementation will fail without considering the compatibility of organizational structure with the ERP system. The enterprise may face internal conflicts due to changes in business processes, organization size, centralization as well as span of control. Organizational changes in structure have to be managed prior to, during, and after ERP implementation. Therefore, in order to successfully design and implement an ERP system, management needs to consider the compatibility of their organizational structure with the ERP system. Thus, we hypothesize that: H1: Organizational structure has influences on ERP application.
Users of accountinginformation have different work background characteristics. Not all users of them have a typical professional accounting background, industry background, working experience and even management level in their organisation. Since management users may come from both accounting and non-accounting background, it becomes critically important for accountinginformation presented to these users reflect, not only financial position of the company but also other relevant non-financial information useful for economic decision making (IASB 2010). For this reason, although financial reports could be measured using accrual and value relevance models, qualitative characteristics are preferred because of its comprehensiveness. Since accrual and value relevance measures focus only on information disclosed in financial statements, to assess the FRQ without including both financial and non-financial information in the annual financial report will be incomplete (e.g. Beest et al., 2009; Nichols & Wahlen, 2004). Therefore, to provide a comprehensive measure of FRQ of accountinginformation, it is important for scholars and practitioners to capture both financial and non-financial information as have been argued by past studies (e.g. Beest et al., 2009; Cohen et al., 2004).
The quality of accountinginformation (AI) is essential to make quality decisions . The users desperately need information that fits their needs . The quality AI the output of a qualityaccountinginformation system (AIS) . The essential role of a quality AIS is that accountinginformation system is an integrated framework in hiring physical resources to transform economic data into financial information in operating and managing company activities, and reporting company achievements to interested parties . Many types of companies in Indonesia have not had a qualityinformation system (IS) yet as several experts claim. Iwan Faidi (2017) claimed that, until now, the micro, small and medium enterprises in Indonesia are still constrained by financial statements . The Chairman of the Supreme Audit Board, Harry Azhar Azis (2016), stated that, in general, the central government’s current financial report cannot be said to be perfect from which six problems are found by the Supreme Audit Agency . Tjahjo Kumolo (2014) said that the performance of the financial management and accountability of regions in Indonesia has not improved and, based on the data obtained from the ministries, regions able to calculate their own financial statements only reach 34%, meaning that there are still 64% regions in Indonesia that have not been able to account for their financial statements well . Leadership is one of the factors affecting the quality of AIS . Leadership, in the context of this study, is defined as the ability to influence and motivate users to use an AIS under any circumstances and be able to provide and communicate the generated AI with the users . The concept of transformational leadership explains how leaders can change their organizations by creating communication and visions so as to transform and inspire their employees to fight for the visions . Transformational leaders are those who are capable of improving values and motivating employees to do more than expected .
(2006: 43) has an important role of information systems in business enterprises that support business processes and operations of an organization. Business Process Modeling has always been an important part of organizational design and development of information systems (Giaglis, 2001: 209). Model enables decision makers to distill the Complexities of the real world so that Efforts can be directed towards the most important part of the information system. Changes in business processes involves changes to people, processes and information technology. Amyot and Weiss (2007: 188) business process analysis aims to integrate the activities in a business that is a very important factor for the implementation of information systems. Hammer (1990: 12) states that the use of information systems with business process redesign will improve the performance of the information system. As according to Juran and Godfrey (1999: 73) business process undertaken by management to support the implementation of information systems. Mclean and Wetherbe (1999: 32) states that the business process for the selection and identification of information systems planning. Changes in business processes will affect the changing needs of hardware, software, databases, and telecommunications which is a component of the information system (Laudon 2006: 1-2). Hommes (2001) states that organizations must align the design of information system with business process design to get qualityinformation systems. It is also conveyed by Turban (1999) states that the business process is used to identify in developing information systems. More is said by O'Brien and Maracas (2008: 17) the success of an accountinginformation system is not only measured by its efficiency in terms of minimizing the cost, time and use of information resources information
Nasution, 2011). Training is a process where people acquire the ability to help achieve organizational goals (Mathis, 2011: 317). Mahapatro (2011: 285) states that the training was organized activities to enhance the knowledge and skills of the people for a particular purpose. Furthermore Dessler (2013: 246) argues that training means giving employees new skills or ongoing required for the performance of their work. Companies need to institute a training program extensively to ensure their workers have the skills to use information technology effectively (Pearlson, 2010: 115). Laudon & Laudon (2012: 364) states that employees need training to prepare implementing the system at the correct information. Stair (2012: 388) states that when the operating system or application system is implemented, then the user training becomes very important. O'Brien & Marakas (2010: 437) considers that training is a key activity in the implementation of accountinginformation systems. Training related phenomena stated by Imam Bastari (2013) that low realization of local budget absorption as a result of implementing information systems and lack of personal ability. Based on the description above, the purpose of this study was to measure (1) the effect of management commitment and user training individually against implementation of accountinginformation systems, and (2) the effect of accountinginformation systems implementation to accountinginformationquality.
One aspect not considered by existing studies is how the quality of accountinginformation reported by publicly traded firms is affected by the existence of political connections. The ongoing debate over managerial incentives to manage earnings reported to the public focuses mostly on whether such management results in higher or lower accountinginformationquality. 3 There is far less discussion of whether earnings management varies systematically with firm characteristics and/or the environment in which the firm operates. Recent evidence in Leuz et al. (2003) demonstrates that country-level factors, such as equity market development, investor rights, and legal enforcement are statistically significantly related to a country’s median level of earnings management. These authors posit that managerial incentives interact with the legal and institutional environment to produce systematic differences across countries. We pursue this incentives-based explanation further by exploiting potentially important variation at the firm-level, such as whether the firm is controlled by a
implementation of change management is a systematic process by applying the knowledge, tools and resources organization to shift from the present to the desired conditions, ie towards better performance and to manage individuals who will be affected the impact of the change process. Characteristics of change management includes structural changes, technological changes and the changes that occur in humans who are Involved in the organization. Change management requires expertise (skills), sectoral specialization, and awareness of the need to change (awareness of the need to change), the desire to participate in and support the changes (desire to participate and support the change), knowledge about how to change and what looks like a change (knowledge of how to change and what the change looks like), daily to apply the changes to abilities (ability to implement the change on a day-to-day basis), strengthening to keep the changes in place (reinforcement to keep the change in place). Furthermore, Frank Sligo (2002: 51) states that organizational change can in view of changes in structure, changes in technology and changes in people who may be in the mirror right the structure of complexity and formality in the organization as for technology can be seen from the flexibility and quality of technology further for a change of the person/organization member can be reflected by the level of knowledge and the implementation of changes implemented. The phenomenon that occurred in the management of change conveyed by Eko Prasojo (2014) the which states that the issue of change of the bureaucracy in Indonesia is complex stretches from the problem that does not change the bureaucratic culture of integrity, overlapping legislation, organizational structure fat and Wasteful. Meanwhile Toto Sugianto (2014) in the Directorate General of Taxation are still many problems that must be taken by the DGT management changes have not been going well. As happened in the banking sector is conveyed by the Governor of Bank Indonesia Agus Martowardoyo (2015) that Bank Indonesia postpone the implementation period of the credit card by using a six-digit PIN technology unprepared for electronic data capture (EDC).
Therefore, users can collaborate to process accounting data into useful information and meaningful to users. Generally, the quality of information systems is related to five aspects: human, hardware, software, data, and network. One way to measure the quality of accountinginformation system is to determine how fast the system (accounting software) can process accounting data that is entered into a financial statement. The problem that usually occurs in the use of accounting software packages which are not compatible with business processes and existing information systems of an organization (Baroudi, 1986; Bokhari, 2005). Enterprise resource planning (ERP) is a software that integrates data and informationmanagement of the overall functional companies that include finance, accounting, production, sales, purchasing, human resources and other functions. The functions are separated by software modules, but are connected with the integrated data center. ERP is a powerful software package that allows companies to integrate the various functions separately. Meanwhile, _______________________________
Intellectual Capital Concept: Intellectual capital is one of the relatively modern subjects in general and in Sudan in particular, it has been addressed in several studies for its importance and it has many definitions including the following: Definition of Management Accountants Association of Canada (SMAC:1998) which says Intellectual capital is the elements based on the knowledge possessed by the company, which lead to the creation of a future stream of benefits for the company," also defined by the Organization for Economic Co-operation and Development in 1999 Also defined" Intellectual capital as the economic value of two categories of intangible assets of a company: structural capital or organizational capital and human capital (Guthrie, 2001). Also, is defined" as the talent and skills and technical knowledge and relationships, as well as machines that embodied, and can be used to create wealth (Tomas. A, 2004, 31). This definition indicates that intellectual capital is the knowledge (skills, expertise, and accumulated education in human element) that can be converted into value, also is defined as "the sum of all that is known to all individuals in the organization and achieve a competitive advantage in the market (Rawia, 2005, 183).This definition adds that intellectual capital as a source of competitive
characteristics of accountinginformation that are assumed to influence the quality of financial reporting, such as earnings management, financial restatement, and financial fraud (Cohen, Krishnamoorthy, & Wright, 2004; Nichols & Wahlen, 2004; Schipper & Vincent, 2003). Moreover, Barth, Beaver, and Landsman (2001a), and Nicholas and Wahlen (2004) employ value relevance models to measure the quality of financial reporting information based on certain qualitative characteristics (QCs). These authors conceptualise the relevance attributes as defined by the FASB conceptual framework in their study. However, they only focus on the relationship between accounting numbers and stock-market reactions (share price and stock return) and not the fundamental QCs of accountinginformation; namely, relevance and faithful representation; as prescribed by the FASB/IASB Conceptual Framework (2010). Therefore, these ways have insufficiently addressed the comprehensive measurement of the quality of financial reporting, including the fundamental QCs as defined by the FASB/IASB (2010). As such, the FASB and the IASB (2010) jointly desire to make an appropriate measurement method to evaluate the financial reporting quality, including all aspects of decision usefulness that have not been thoroughly studied.
This paper relates to a growing literature examining earnings quality internationally. Economic explanations for poor earnings quality typically focus on agency and governance issues. Leuz (2006) documents a positive association between ownership concentration and earnings management, even among the subset of foreign firms that cross-list internationally. Combined with evidence that firms with concentrated ownership structures are more likely to form political ties (Morck et al (2000), Morck and Yeung (2004)), this suggests that politically connected firms may also have lower quality reported earnings. Fan and Wong (2002) find that the reported earnings of Asian family firms have limited information content. They argue that this result is driven by an entrenchment effect, where family firms have more incentive and capability to manipulate earnings in order to hide expropriation from minority shareholders. Wang (2006) however, finds that founding family ownership is associated with higher earnings quality for a sample of S&P 500 firms. While confirming these earlier results, we show that political connections are important over and beyond ownership characteristics.
produce financial report and other financial information more comprehensively that include the information about regional financial position. BPKP in this case, Deputy of Regional Financial Management Supervisor has determined the development of Regional ManagementInformation System (RMIS) as an activity to support performance achievement and the increase of BPK opinion level toward Regional Government Financial Report (RGFR). In Indonesia, application program of RMIS has been operated in 425 regional governments from the total of 542 existing regional governments or as much as 78.41. The application of RMIS can be implemented for regional financial management in an integrated manner using information technology, from budgeting, budget implementation, and financial accountability both in Satuan Kerja Pengelola Keuangan Daerah (SKPKD) / Regional Financial Management Working Unit and in Satuan Kerja Pemerintah Daerah (SKPD) / Working Unit of Regional Government (BPKP, 2017). Many studies have also found that there are problems of transparency and accountability related to regional government financial matters (Fjeldstad et al., 2004). They are based on the reality that many people do not receive information about regional finance, lack of communication on various decisions made, not conducting cost analysis, and the low quality of produced information. The result of the studies done by Chalu and Kessy (2011) and Crespo et al. (2017) proved that accountinginformation system can increase the transparency in regional government. Next, the result of studies done by Jesus and Eirado (2012) and Ole (2014) proved that accountinginformation affects the accountability in public sectors. Based on those phenomena, the problems, theoretical basis as well as the results of previous studies, the author is interested in investigating “the effect of ManagementAccountingInformation System Application on InformationQuality and Its Implication on Good Government Governance (Accountability, Transparency, Participative) in Regional Government of District/City in Lampung”.
`22 Main, O'Reilly, & Wade (1993) introduce tournament theory as a challenge to equity considerations within the pay of top management teams. Citing Lazear & Rosen (1981) who describe how rank-based pay and output based pay are equally efficient when workers are risk neutral, Main et. al., (1993) suggest that the compensation of top executives exceeding the product of their labor may be an economically efficient outcome due to the motivational effect of higher top management pay on employees down the ladder who hope to access that pay level in the future. They investigate the effects of pay dispersion within a firm’s top management team in a five-year sample of over 2000 executives per year. This analysis of executive compensation shows that top management team pay appears to follow a sequential tournament structure where increasing rank-based awards motivate employees and equity concerns are secondary. These findings are interesting when considering the functions presented by Rabin (1993) and how payoff levels may affect the utility of fairness considerations.
Research works on the earnings quality of Nigerian firms after the adoption of IFRS are not many. Ibiamke and Abanyam (2014) as cited by Sanni (2015) found that the adoption of IFRS resulted to a significant increase in financial statement value relevance of quoted Nigerian firms. Results of the research by Asian and Dike (2015) indicated a decline in accountingquality using earnings management, value relevance, and timely loss recognition as independent variables. Earnings and book value of equity were less value relevant and timely loss recognition was less in post-IFRS compared to pre-IFRS period. Onalo, Lizamand Kaseri (2014) established from an investigation into IFRS and the quality of financial information by Nigerian banks that IFRS adoption engendered higher quality of banks financial statement information compared to local GAAP (Generally Accepted Accounting Principles).
Quality of accountinginformation which can provide benefits in the form of an opportunity to do things faster, more correctly (effective) and cheaper (efficient) (Azhar Susanto, 2008:12). Accountinginformationquality can lead to decisions taken by the user is not qualified so can result in losses (Huang et al., 1999). The wrong decision can in turn lead to additional costs, adding a longer time, lower the reputation of the organization, causing difficulty in identifying opportunities, as well as lost opportunities (Baltzan, 2012:209). The information produced by the accountinginformation system is not just the financial statements, but all the information that support increased productivity, efficiency and control (Azhar Susanto, 2008:11). In practice, masih` many problems occurred in accountinginformation systems that are not relevant to non-business entities such as accountinginformation system applied to SOEs still bad proved inaccurate recording and reporting process is not in accordance with the former SOE SOE Minister Metri (Dahlan Iskan, 2012). Obviously the conditions relating to the problems in the quality of input data and the application of accountinginformation systems above require attention from management in the organization, management must demonstrate its commitment in the determination of the data inputted into the accountinginformation system, because without the commitment of management, there is no data input quality (Hubley, 2001; Adelman, 2009), which is needed to produce qualityinformation (Kimbal et al., 2008). Management commitment is needed in determining the scope of data quality clear because not all data need to be connected to the accountinginformation system (Vodapaali: 2009).
at the right time for decision-making, where the result is a more informed decision, the allocation of resources more precise and better response time, so as to reduce costs and generate profits (Laudon and Laudon, 2008: 13). Accountinginformation submitted in the proper form will have relevance, accuracy, timeliness and complete (McLeod and Schell, 2008: 52). Integration is the key to success in the accountinginformation system (Nicolaou, 2000: 92), due to the integration of the accountinginformation system generated accountinginformation that is accurate, timely, and consistent for management (Rodin and Brown, 2008). According to McLeod (2007: 29) the integration of accountinginformation system not only integrates the components of hardware, software, brainware, communication networks, databases and procedures, also includes the quality of work and satisfaction of users of accountinginformation systems (Sacer et. Al, 2006: 62).According to O'Brien and Marakas (2010: 353), the quality of accountinginformation can be described in three dimensions, namely, time, content and the format. Criteria of quality of accountinginformation by Gelinas et al (2012: 19) and McLeod (2007: 43) is the information must be relevant, accurate, timely and complete. Stair and Reynolds (2010: 6) to enter the dimensions accessible, accurate, complete, economical, flexible, relevant, reliable, secure, simple, timely and verifiable. Accountinginformation has relevance if the accountinginformation is able to make a change in the decision in accordance with the purpose of the user (Gelinas et al., 2012: 21). Sri Mulyani NS (2009: 18) accountinginformation can be said to be relevant if the accountinginformation contained in it can affect the user's decision to help them evaluate the events of the past or present, and
The success of an information system is not only determined by how the system can produce well informed, relevant and reliable, still also determined by compliance with the work environment, which means that the information needed by the users of information systems. Although technically an information system is perfect, but it can not be said to be successful if the users of the system can not use it (Choe, 1996). Choe (1996) states that user ability and top management support is an important factor that must be met in the success of information systems. which plays an important role in the integration of information systems is the brain-ware as well as linkages with organizations (Walsham et al, 1998). Rosemary Cafasaro in O'Brien and Marakas (2009) states that there are several reasons that lead to the success or failure of an organization / company in implementing information systems. factors that affect the successful implementation of information systems, including the support of executive management, user capabilities, user involvement, use of company needs a clear, careful planning and a real company's expectations. Quality of accountinginformation systems that will produce qualityaccountinginformation (Azhar Susanto, 2008). The success of an accountinginformation system one of which can be seen from the dimensions of informationquality (DeLone and McLean, 2003).
In the framework of the decision-making process, an executive requires accountinginformationquality (O'Brien and Maracas, 2008:324). The importance of accountinginformation indecision-making activities expressed by Gelinas and Dull (2008: 17) as follows information is the data presented in a form that is useful in a decision making activity. The value of accountinginformation depends on the quality of accountinginformation is presented (Azhar Susanto, 2013: 11). Accountinginformation can be aligned with labor, raw materials, machines, money and described as blood flow through the human body (Laudon and Laudon, 2008:7). Furthermore, Azhar Susanto (2013: 65) states that the accountinginformation is the output of the accounting process. In general, the accountinginformation presented in the financial statements (Kieso et al, 2012:5). By using accountinginformation, internal parties will obtain accountinginformation relating to past and future, such as prediction/forecasting which includes annual plans, strategic and decision alternatives (Azhar Susanto, 2013).