Literacy, external user-pressure and quality of accounting information of Ugandan SMES
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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Insight
Abstract
Purpose – The overall purpose of this study is to investigate whether
literacy levels and external user-pressure by the Uganda Revenue
Authority affect the perceived quality of accounting information of
Ugandan SMEs.
Design/methodology/approach – A postal questionnaire survey of 98
SMEs drawn from Kampala, Uganda was undertaken. Ordinary Least
Squares (OLS) regression was used to determine whether literacy levels
and external user-pressure affect the quality of accounting information
controlling for firm size, accounting qualification and firm age.
Findings – The findings suggest that literacy levels and external userpressure
influence the perceived quality of accounting information.
Accounting qualification and firm age were also found to be positively
associated with the quality of accounting information. However, there is no significant relationship between firm size and quality of accounting
information.
Originality/value – The study provides evidence of the effect of literacy
and external user-pressure on the quality of accounting information in a
developing country where such evidence does not currently exist.
Implications – Since accounting information is important for economic
growth, the Ugandan government needs to spend more resources to
improve the literacy especially among the SMEs. The Uganda Revenue
Authority also needs to maintain pressure on SMEs to improve the
quality of information provided by SMEs since such information is
important for assessing tax payable.
Description
Keywords
Quality of accounting information, Literacy, User-pressure, SMEs, Uganda
Citation
Irene Nalukenge, Stephen K. Nkundabanyanga, Venancio Tauringana. "Literacy, External User-Pressure and Quality of Accounting Information of Ugandan SMEs" In Accounting in Africa. Published online: 09 Mar 2015; 51-73. Permanent link to this document: http://dx.doi.org/10.1108/S1479-3563(2012)000012A007