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This page presents an AI-generated summary of a published research paper. The original authors did not write or review this article. [See full disclosure ↓]

IT capability improves accounting systems and reporting quality

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Research area:business-management

What the study found

The study found that information technology capability is significantly associated with higher Accounting Information System (AIS) quality and Financial Reporting Quality (FRQ) in Indonesian local governments. AIS quality appears to be the most important driver of FRQ and a key mediator connecting IT capability to reporting outcomes.

Why the authors say this matters

The authors conclude that improvements in financial reporting do not come from technology or human resources alone, but from their integration through effective accounting systems. The study suggests this has practical value for policymakers seeking to strengthen digital capacity and accountability in local government financial management.

What the researchers tested

The researchers examined how IT capability influences AIS quality and FRQ in Indonesian local governments. They used survey data from 735 public sector employees and analyzed the relationships with Partial Least Squares Structural Equation Modeling (PLS-SEM), a statistical method for testing linked variables in a model.

What worked and what didn't

IT capability, reflected in government commitment and individual IT competence, knowledge, and experience, significantly improved both AIS quality and FRQ. AIS quality also emerged as the central mediating mechanism between IT capability and reporting quality. The abstract does not report any null findings or relationships that did not hold.

What to keep in mind

The available summary does not describe specific study limitations. The findings are based on survey data from Indonesian local governments, so the scope is limited to that public-sector context.

Key points

  • IT capability was significantly linked to better AIS quality and FRQ in Indonesian local governments.
  • Government commitment and individual IT competence, knowledge, and experience were the IT capability factors mentioned.
  • AIS quality was identified as the most critical driver of financial reporting quality.
  • AIS quality served as a key mediator between IT capability and reporting outcomes.
  • The study used survey data from 735 public sector employees and PLS-SEM.

Disclosure

Research title:
IT capability improves accounting systems and reporting quality
Authors:
Ahyar Muhammad Diah, La Ode Hasiara, Dadang Lesmana, Sugeng Raharjo, Yesi Aprianti, Rizky Yudaruddin
Institutions:
Mulawarman University, Mulawarman University, Mulawarman University, Politeknik Negeri Samarinda, Regional Development Agency, Universitas 17 Agustus 1945 Samarinda, Universitas 17 Agustus 1945 Samarinda
Publication date:
2026-04-08
DOI:
10.1080/23311975.2026.2654816
OpenAlex record:
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AI provenance: This post was generated by gpt-5.4-mini (OpenAI). The original authors did not write or review this post.

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