Perceived use of accounting information and practices of accounting in micro enterprises of developing countries
Research question: What is the perceived use of accounting information and current practices of accounting in micro enterprises? Motivation: Business decisions are more accurate and focused if they are made based on reliable information, for instance, accounting information. However, the use of ac...
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Bucharest University of Economic Studies
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doaj-9825200cc74f4e08ab72425ee87e12302020-12-27T14:36:28ZengBucharest University of Economic StudiesContabilitate şi Informatică de Gestiune1583-43871583-43872020-12-0119468270610.24818/jamis.2020.04003Perceived use of accounting information and practices of accounting in micro enterprises of developing countriesMd. Zakir Hosen0Md. Takibur Rahman1Md. Mamun ur Rashid2Department of Accounting and Information Systems, Patuakhali Science and Technology University, BangladeshDepartment of Accounting and Information Systems, Patuakhali Science and Technology University, BangladeshDepartment of Agricultural Extension and Rural Development, Patuakhali Science and Technology University, BangladeshResearch question: What is the perceived use of accounting information and current practices of accounting in micro enterprises? Motivation: Business decisions are more accurate and focused if they are made based on reliable information, for instance, accounting information. However, the use of accounting information in decision-making varies among the business entities, which is even poor in micro enterprises in developing countries. Idea: This study aims to examine perceived use of accounting information in decision-making and current practices of accounting in micro enterprises of Bangladesh. Data: The data include the characteristics of owner and business, perception on accounting systems, the use of accounting information (ACI) in decision-making and the current accounting practices collected from 148 respondents. Tools: The data are analyzed using standard descriptive statistical tools and multivariate regression. Findings: We find that the perception regarding the use of ACI in decision-making is low. Furthermore, the existing practices of accounting in surveyed entities are very low. The key practices, in terms of weighted mean, are cash reconciliation and practices of budgeting. Furthermore, the number of employees in the enterprises has a positive significant relationship with the perception regarding the use of ACI in decision-making. Besides, enterprises practicing accounting have higher performance. In addition, the size, and the nature of business have statistically significant positive effects on turnover. Contribution: This study may help stakeholders in understanding the role of accounting in business decision-making and its impacts on financial performance of the micro enterprises in developing countries. http://online-cig.ase.ro/jcig/art/19_4_3.pdfaccounting informationdecision-makingperceptionproprietorship |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Md. Zakir Hosen Md. Takibur Rahman Md. Mamun ur Rashid |
spellingShingle |
Md. Zakir Hosen Md. Takibur Rahman Md. Mamun ur Rashid Perceived use of accounting information and practices of accounting in micro enterprises of developing countries Contabilitate şi Informatică de Gestiune accounting information decision-making perception proprietorship |
author_facet |
Md. Zakir Hosen Md. Takibur Rahman Md. Mamun ur Rashid |
author_sort |
Md. Zakir Hosen |
title |
Perceived use of accounting information and practices of accounting in micro enterprises of developing countries |
title_short |
Perceived use of accounting information and practices of accounting in micro enterprises of developing countries |
title_full |
Perceived use of accounting information and practices of accounting in micro enterprises of developing countries |
title_fullStr |
Perceived use of accounting information and practices of accounting in micro enterprises of developing countries |
title_full_unstemmed |
Perceived use of accounting information and practices of accounting in micro enterprises of developing countries |
title_sort |
perceived use of accounting information and practices of accounting in micro enterprises of developing countries |
publisher |
Bucharest University of Economic Studies |
series |
Contabilitate şi Informatică de Gestiune |
issn |
1583-4387 1583-4387 |
publishDate |
2020-12-01 |
description |
Research question: What is the perceived use of accounting information and current practices of accounting in micro enterprises?
Motivation: Business decisions are more accurate and focused if they are made based on reliable information, for instance, accounting information. However, the use of accounting information in decision-making varies among the business entities, which is even poor in micro enterprises in developing countries.
Idea: This study aims to examine perceived use of accounting information in decision-making and current practices of accounting in micro enterprises of Bangladesh.
Data: The data include the characteristics of owner and business, perception on accounting systems, the use of accounting information (ACI) in decision-making and the current accounting practices collected from 148 respondents.
Tools: The data are analyzed using standard descriptive statistical tools and multivariate regression.
Findings: We find that the perception regarding the use of ACI in decision-making is low. Furthermore, the existing practices of accounting in surveyed entities are very low. The key practices, in terms of weighted mean, are cash reconciliation and practices of budgeting. Furthermore, the number of employees in the enterprises has a positive significant relationship with the perception regarding the use of ACI in decision-making. Besides, enterprises practicing accounting have higher performance. In addition, the size, and the nature of business have statistically significant positive effects on turnover.
Contribution: This study may help stakeholders in understanding the role of accounting in business decision-making and its impacts on financial performance of the micro enterprises in developing countries.
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topic |
accounting information decision-making perception proprietorship |
url |
http://online-cig.ase.ro/jcig/art/19_4_3.pdf |
work_keys_str_mv |
AT mdzakirhosen perceiveduseofaccountinginformationandpracticesofaccountinginmicroenterprisesofdevelopingcountries AT mdtakiburrahman perceiveduseofaccountinginformationandpracticesofaccountinginmicroenterprisesofdevelopingcountries AT mdmamunurrashid perceiveduseofaccountinginformationandpracticesofaccountinginmicroenterprisesofdevelopingcountries |
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