Accounting Systems and their Impact on making Investment Decisions

Abstract

    Accounting, like other sciences, is governed by a system of its own, consisting of three main parts: “inputs, processing, and outputs.” Like any other system, it is governed by several policies and procedures that cannot be bypassed for any reason.

    Accounting information is an important element of production that has an important role in determining the effectiveness and efficiency of the establishments, so the establishments sought to design and build advanced systems in order to control the huge amount of information to manage the establishments, in order to ensure that accurate information reaches all levels in an appropriate and timely manner. in order to use them in making rational decisions.

    The research aims to:

1. A survey of companies' opinions on the impact of accounting information systems in making investment decisions.
2. Identifying the extent to which the desired quality elements are available in the outputs of accounting systems for the purposes of making investment decisions.
3. Educating companies about the need to use flexible software, that is, scalable, and to adapt to changes that occur in the environment surrounding the company.

   The research recommended:

1. Educating companies about the importance of computerizing accounting information systems because of its positive impact on investment decision makers.
2. Educating companies' departments to use advanced protection programs to preserve the privacy of those dealing with the company, and thus increase their confidence in it and the outputs of its computerized system, to keep pace with the rapid technological changes, and to update its computerized systems accordingly.
3. Urging investors to deal with those companies that employ technological mechanisms in their systems in general and their accounting system in particular, and encourage companies that do not employ technological mechanisms to use them.