Accounting Information and Decision Making in Selected International Banks in Kampala, Uganda

ABSTRACT 1. The study was motivated by the need to determine relationship between accounting information and decision making in the selected International banks in Kampala, Uganda. The study was guided by four objectives: 1) To determine the relationship between accounting information completeness and financing decision in selected International Banks in Kampala, 2)To determine the relationship between accounting information relevance and financing decision in selected International Banks in Kampala, 3)To establish the relationship between accounting information authenticity and financing decision in selected International Banks in Kampala, and 4)To determine the relationship between accounting information accessibility and financing decision in selected International Banks in Kampala. The researcher used descriptive co relational research design and the main instrument of data collection was questionnaire. The target population was comprised of chief accountants, accountants, auditors and managers from Tropical Bank, Equity bank, Stanbic bank and Cairo Bank. It is estimated that the total population is 141. Data was analyzed using frequencies and percentages, descriptive means and standard deviation. The findings indicate that there is a srong positive relationship between accounting information and decision making . The researcher recommended that to enhance Accounting information of International Banks in Kampala they should emphasize more on autonomy of International Banks in terms of authenticity, completeness, relevance and accessibility of accounting information. The study also recommended these banks to be transparent while disclosing financial statements. And it also recommended managers to decrease dependence on factors like man intuition when they make business decisions. 

TABLE OF CONTENTS

Declaration .H

Approval iii

Dedication iv

Acknowledgement V

Table of contents vi

List of tables Vi

Abstract X

CHAPTER ONE: INTRODUCTION x

1 .0 Introduction 1

1.lBackground of the study 6

1 .1 .1 Historical Perspective 6

1 .1.2 Theoretical perspective 8

1 .3 Conceptual perspective 8

1 .1. 4 Contextual perspective 17

1.2 Statement of the Problem 18

1.3 Research Objectives 18

1.3.1 General Objective 18

1.4 Research Questions 19

1.5 Research Hypothesis 19

1.6 Scope of the Study 22

1.6.1 Geographical scope 23

1.6.2 Content scope 23

1.6.3 Theoretical scope 23

1.6.4 Time scope 23

1.7 Significance of the Study 23

vi

CHAPTER TWO

LITERATURE REVIEW .24

2.0 Introduction 24

2.1 .2 Agency theory and the role of audit 28

2.1 .3 The theory’s assumptions 29

2.3 Related literature 30

METHODOLOGY 42

3.0 Introduction 42

3.1 Research Design 42

3.2 Research Population 42

3.3 Sample size 42

3.4 Sampling Procedures 43

3.5 Research Instruments 43

3.6 Validity and reliability of research Instruments 44

3.6.1 Validity 44

3.6.2 Reliability 44

3.7 Data Gathering Procedure 45

3.8 Data Analysis 46

3.9 Ethical Considerations 47

CHAPTER FOUR 49

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 49

4.0: Introduction 49

4.1.0 Demographic characteristics of respondents 49

4.1.1 Gender of respondents 49

VI I

4.1.2Age of respondents .50

4.1.4 Position of respondents 52

4.2.0 Descriptive statistics of respondents 54

CHAPTER FIVE 78

DISCUSSION, CONCLUSION AND RECOMMENDATIONS 78

5.0 Introduction 78

5.1 Objective one~ 78

5.2 Objective two 79

5.3 Objective Three 81

5.4.Conclusion 82

5.5.Recornrnendations 83

5.6.Areas for further studies 84

References 85

Appendix IA: Transimittal Letter 91

Appendix IB: Transirnittal Letter For The Respondents 92

Appendix : Clearance From The Ethical Committe 92

Appendix 111: Informed consent 93

Appendix IV A: Face Sheet 94

Interview guide for the respondents 103