Effect Of Electronic Accounting On The Financial Performance Of Commercial State Corporations In Kenya

Abstract

The objective of this study was to determine the effect of electronic accounting on financial performance of commercial state corporations in Kenya. The theories covered are; the resource based view theory of the firm, the diffusion of innovation theory and the technology acceptance model. A descriptive cross-sectional research design was employed in this study. The population of the study comprised of the 54 commercial state corporations operating in Kenya as at 31st December 2017. The study used both primary and secondary data. Secondary data was obtained from the financial statements and other annual published reports for the five-year period between 2013 and 2017. The primary data was collected by use of structured questionnaires using the Likert Scale. The targeted respondents in this study were principal accountants of the commercial state corporations or their representatives. The researcher administered the questionnaire to one respondent in each commercial state corporation giving a total of 54 questionnaires. The questionnaire consisted of open-ended and close-ended questions. The SPSS software version 22 computer software was used in the analysis since it’s more user-friendly and examined the descriptive, correlation and regression analyses. In descriptive statistics, the study used mean, standard deviation and scatter plot. In inferential statistics, the study used multivariate regression analysis to determine the relationship between the study variables. The study concluded that electronic accounting has a positive effect on the financial performance of commercial state corporations. Specifically, the study concluded that electronic accounting, firm liquidity and firm size have a positive effect on the financial performance of commercial state corporations.