The impact of information systems and non-financial information on company success

• Published in: International journal of accounting information systems 2022-06, Vol.45, p.100557, Article 100557
• Main Authors: Paula Monteiro, Albertina, Vale, Joana, Leite, Eduardo, Lis, Marcin, Kurowska-Pysz, Joanna
• Format: Article
• Language: English
• Subjects: Accounting information system quality; Corporate success; Decision-making success; Internal control system quality; Non-financial information quality
• ISSN: 1467-0895; 1873-4723
• DOI: 10.1016/j.accinf.2022.100557

•Accounting information and internal control systems quality impacts on Non-Financial Information Quality.•Non-financial information, with quality, leads business managers to make successful decisions.•Managers who successfully make decisions belong to companies with better Non-Financial Performance.•Quality Non-Financial Information impacts on relationship between information and control systems and Non-Financial Performance. This study aims to develop and evaluate a model that seeks to measure the impact of Accounting Information System Quality, Internal Control System Quality and Non-Financial Information Quality on company success (Decision-Making Success and Non-Financial Performance). This model is empirically tested with data obtained from the managers of 381 Portuguese companies. We use structural equation modelling in the analysis of causal relationships between different constructs. The results show that information and control systems quality (accounting and internal control) have a direct impact on Non-Financial Information Quality and an indirect impact on Decision-Making Success. The results also indicate that Quality Non-Financial Information does not contribute directly to Non-Financial Performance but contributes indirectly via Decision-Making Success. The exploratory variables prove to be crucial for the companies’ Non-Financial Performance, accounting for its 62% variance. Previous research focuses primarily on financial information quality and financial performance. This study is the first to empirically prove that information and control systems contribute favourably to the transparency and value-relevance of non-financial information and, consequently, to business success.