Effect Of Electronic Accounting On The Financial Performance Of Commercial State Corporations In Kenya

The objective of this study was to determine the effect of electronic accounting on \nfinancial performance of commercial state corporations in Kenya. The theories \ncovered are; the resource based view theory of the firm, the diffusion of innovation \ntheory and the technology acceptance model. A descriptive cross-sectional research \ndesign was employed in this study. The population of the study comprised of the 54 \ncommercial state corporations operating in Kenya as at 31st December 2017. The \nstudy used both primary and secondary data. Secondary data was obtained from the \nfinancial statements and other annual published reports for the five-year period \nbetween 2013 and 2017. The primary data was collected by use of structured \nquestionnaires using the Likert Scale. The targeted respondents in this study were \nprincipal accountants of the commercial state corporations or their representatives. \nThe researcher administered the questionnaire to one respondent in each commercial \nstate corporation giving a total of 54 questionnaires. The questionnaire consisted of \nopen-ended and close-ended questions. The SPSS software version 22 computer \nsoftware was used in the analysis since it’s more user-friendly and examined the \ndescriptive, correlation and regression analyses. In descriptive statistics, the study \nused mean, standard deviation and scatter plot. In inferential statistics, the study used \nmultivariate regression analysis to determine the relationship between the study \nvariables. The study concluded that electronic accounting has a positive effect on the \nfinancial performance of commercial state corporations. Specifically, the study \nconcluded that electronic accounting, firm liquidity and firm size have a positive \neffect on the financial performance of commercial state corporations.