THE IMPACT OF ACCOUNTING INFORMATION QUALITY ON BUSINESS DECISION MAKING EFFECTIVENESS OF SMALL AND MEDIUM ENTERPRISES

Abstract

This study aims to determine the impact of accounting information quality on business decision-making efficiency of small and medium-sized enterprises (SMEs) in the Northwest Subregion, Vietnam. The study surveyed 311 people who are chief accountants, accountants in charge, accountants and board of directors of 129 SMEs in the Northwest Subregion, Vietnam. By using the correlation regression model on SPSS 22 software, the regression model results with R²=72.8%. This means that 72.8% of the factors in the quality of accounting information affect the effectiveness of business decision making of SMEs in the Northwest Subregion. In which the factor reflecting the usefulness of accounting information quality has the strongest and most positive impact. Based on the findings, several recommendations have been proposed to improve the quality of accounting information, thereby helping managers of SMEs in the Northwest Subregion be effective in making decisions.