RELATIONSHIP BETWEEN ACCOUNTING INFORMATION AND THE FINANCIAL PERFORMANCE OF PRIVATE SCHOOLS IN AKWA IBOM STATE

Abstract

This study investigates the relationship between accounting information systems (AIS) and the financial performance of private schools in Akwa Ibom State. Employing a survey design, primary data were collected via a structured questionnaire administered to staff in accounting and related departments of private schools across the three senatorial districts (Uyo, Eket, Ikot Ekpene). The sampling approach combined purposive (judgmental) selection with multi-stage techniques: stratification to identify metropolitan private schools within local government areas, followed by targeted distribution of 300 questionnaires; 250 were returned; after screening for completeness, 190 valid responses were analyzed. The instrument comprised sections on demographics, AIS hardware, software, database, network communication technology, system maintenance and users’ competence, and financial performance. Responses were measured on a five-point Likert scale (SA = 5 to SD = 1). Instrument reliability was confirmed using Cronbach’s Alpha (overall α = 0.826), indicating acceptable internal consistency, while face validity was established through expert review. Data analysis involved descriptive statistics and simple linear regression to test hypotheses relating AIS components (hardware and software) to financial performance. Results show statistically significant positive relationships for both hardware (R = 0.842, p < 0.05) and software (R = 0.816, p < 0.05), with software identified as having a particularly positive influence on performance. The study concludes that AIS notably software, database management, and network communication technologies relate positively to private schools’ financial outcomes, and recommends complementary investments in software and network solutions alongside hardware procurement to realize financial benefits.