ABSTRACT The study examined the relationship between Accounting information system and financial performance in Banque Populaire de Rwanda and it was based on six specific objectives: (a) to determine respondents’ profile in terms of gender, age, level of educational, position and experience; (b) level of accounting information system; (c) level of financial performance; and (d)to determine if there is a significant difference in the level of AIS in terms of accounting information and financial reporting according to relevant profile variable; (e) to establish if there is a significant difference in the level of financial performance in terms of profitability, liquidity and growth according to relevant profile variables; (f) to establish if there is a significant relationship between the levels of Accounting information system and financial performance in selected financial institutions in Rwanda. The study used a descriptive correlation research design. SAQ were used to collect primary data from 100 out of 134 employees, using simple random sampling. Data analysis was done using SPSS’s frequencies and percentages; means and PLCC. Findings revealed that majority of the respondents were male, falling in the age bracket of 20 — 30 years, with bachelor’s degree, and experience between 2 — 4 years. Means showed that both the level of accounting information system implementation and the level of financial performance of BPR Bank were satisfactory. PLCC revealed a positive and significant relationship between accounting information system implementation and the level of financial performance of BPR while regression analysis showed that accounting information system contributes 88% to financial performance. Basing on the above findings, the researcher made the following recommendations: (i) financial institution should increase the rate and preparedness to meet their current liabilities, (ii) the percentage of business profit retained for expansion purposes need to be increased, (iii) Business plans to list on the stock exchange in future need to be handled sophisticatedly , (iv) on the time capturing and accurately recording transactions need to be emphasized all the time (v) Budgets should be prepared to forecast operations and compare estimate with actual results, and (vi) accounting policies adopted need to be applied consistently.
TABLE OF CONTENTS
Preliminary pages Page
Declaration A
Declaration B ii
Approval Sheet iii
Dedication iv
Acknowledgement v
Abstract vi
Table of contents vii
List of Tables x
List Acronyms xi
ONE PROBLEMANDITSSCOPE 1
Statement of the Problem 4
Purpose of the Study 4
Research Objectives 4
General Objective 4
Specific Objectives 5
Research Queztions 5
Hypothesis 6
Scopeofthestudy 6
Significance of the Study 6
vii
Operational Definition of Key terms 7
TWO REVIEW OF RELATED LITERATURE 8
Concepts/Ideas from Authors and Experts 14
Theoretical Perspective 14
Related studies 15
THREE METHODOLOGY 17
Research Design 17
Study Population 17
Sample Size 17
Sampling Procedure 18
Research Instrument 18
Validity and Reliability of the Instrument 18
Data Gathering Procedure 20
Data Analysis 20
Ethical Consideration 21
Limitations of the Study 21
FOUR ANALYISIS AND INTERPRETATION OF DATA 23
Respondents Demographic Characteristics 23
Level of Accounting Information System 25
Level of Financial Performance 28
Differences in the level of AIS according to gender and experience 29
Differences in the level of~financial performance according to gender and
experience 31
viii
Relationship between Accounting Information Systems and Financial
Performance 33
FIVE FINDINGS, CONCLUSIONS AND RECOMMENDATION 36
Summary of Findings 36
Conclusion 37
Recommendation 38
Areas for Further Research 39
REFERENCES 40
APPENDICES 42
Appendix IA : Transmittal Letter 42
Appendix TB: Transmittal Letter 43
Appendix TI: Informed Consent 44
Appendix III: Research Instrument 45
Appendix IV: Content Validity Index 49
Appendix V: Reliability Test 51
