Impact of ERP System Using on the Accounting Information Relevance: Evidence from Saudi Arabia

Abstract

Nowadays Enterprise Resource Planning System (ERP) plays a vital role in the business environment. It could be considered as a competitive advantage for firms. On the other hand, the quality of accounting information is a critical issue for the decision makers. In this study, we investigate whether ERP Systems Implementation has effects on the relevance of accounting information by measuring timeliness, feedback value, and predictive value of accounting information. The analysis shows that ERP System’s existence has a positive effect on the relevance of accounting information. This finding has been achieved by distributing questionnaires to the decision makers in 115 firms consisting of 90 ERP system adopters and 35 non-adopters.