The Role of the Accounting Information Quality in Pre-Financial Crisis Management at Palestinian Government Universities

Abstract

The main purpose of this study is to investigate the role of the quality of accounting information in improving the effectiveness of pre-financial crisis management. The importance of accounting information stems from reducing the state of uncertainty and increasing the level of confidence of the decision-maker, especially during critical times such as financial crises. Therefore, by understanding this role in managing financial crises, Palestinian government universities can effectively detect early signs of the financial crisis, which in turn enhances their ability to prepare for and prevent the financial crisis. In fact, this contributes to supporting the ability of these universities to create and follow a proactive strategy in facing and limiting financial crises, in which the quality of accounting information performs a crucial role. The study used the descriptive analytical method and the quantitative approach, where the manual questionnaire was adopted as a tool for data collection. The population of the study is represented by the employees of the accounting and financial departments at Al-Aqsa University, which are 40 employees, and they all constituted the sample of the study. The study relied on the to analyze data and test hypotheses. The findings revealed a statistically significant impact of the quality of accounting information in achieving the effectiveness of pre-financial crisis management. Accordingly, the study recommended the necessity of availability and reliance on high quality accounting information for its critical and vital role in detecting early signs of the financial crisis and improving preparedness and prevention capabilities. Future research is recommended to focus on exploring the mediating and moderating factors that affect the relationship between the quality of accounting information and pre-financial crisis management.

Accounting information systems and financial crises: insights into local governments

“…The municipalities' practices related to financial management are still weak, not to mention the administrative fragmentation that prevents the achievement of savings in service provision because of the increase in their size 58 . Thus, it can be seen that AISs play an important role in managing financial crises, and any weakness in the systems would have an impact on the effectiveness and ability of the LAs to manage the crises, including financial crises 59 .…”

The Impact of Quality Dimensions of Accounting Information System Success on the Effectiveness of During-Financial Crisis Management: The Mediating Role of System Usage in a Government Sector Context

“…Information quality expresses the characteristics and features that are expected to be evident in the outputs of information systems, resulting from the processes of data entry and processing. It represents the level of quality that meets the needs, aspirations, and desires of the user from the information provided by the system (Dalloul, Binti Ibrahim, & Tajul Urus, 2022;DeLone & McLean, 1992;Yassien et al, 2017;Zwyalif, 2015). A high quality of information represents a situation that increases the certainty and integrity of decisions.…”

“…This dimension reflects the value that users of the information system receives (Adwan, 2019;Al-Ja'afreh, 2011;Dalloul et al, 2022;DeLone & McLean, 2016;Gopinathan & Raman, 2020). The high quality of the service represents the harmonic state between the level of service provided and meeting the users' expectations of the service.…”

“…The objective of this task is to face the signs of weakness, defects, problems, and risk factors in an attempt to treat them in order to prevent the occurrence of the crisis while also preparing for its occurrence. Thus, it constitutes the set of activities that primarily work on controlling, monitoring, and analyzing the practices and events that create the crisis (Abu Taha, 2016;Ahmed & Jabbar, 2021;Al-Ajmi, 2011;Dalloul et al, 2022;Pan & Meng, 2016;Pearson & Mitroff, 1993). In addition, it deals with two specific areas related to planning: preventing the occurrence of the crisis by developing a preventive plan to be activated to treat the various deficiencies before the situation escalates into a crisis and preparing in advance to confront the crisis when it occurs by developing a treatment plan that is prepared for activation if the crisis occurs.…”

Financial Crises Management in Light of Accounting Information Systems Success: Investigating Direct and Indirect Influences

“…Furthermore, confirming the originality and novelty of the study is the scarcity and absence of studies related to accounting information systems and financial crises in the Palestinian local authorities. As many studies and reports provided recommendations in this regard e.g., [1,8,9,14,18,19,23,29,33,41,42].…”