ACCOUNTING INFORMATION CHARACTERISTICS AND PERFORMANCE OF FINANCIAL INSTITUTIONS: A CASE STUDY OF STANBIC BANK KABALAGALA BRANCH MAKINDYE DWISION KANSANGA,

ABSTRACT

The researcher investigated ‘Accounting Information characteristics and performance of

Financial institutions”. The study was guided by three research objectives which were; to

identify effect of reliability of accounting information on the performance of Financial

institutions in Makindye division, to find out the effect of relevance of accounting

information on the performance of Financial institutions in Makindye division and lastly, to

determine the effect of understandability of accounting information on the performance of

Financial institutions in Makindye division.The methodology involved the use of a cross

sectional survey research design. Both qualitative and quantitative approaches were used in

data collection and analysis in order to get an in depth understanding of the phenomenon

under investigation and to confirm completeness for instruments. The study population

constituted of the staff members and clients of Stanbic bank Kabalagala. The data collection

instruments involved the use of questionnaires and Interviews. The findings of the study

revealed that;Accounting information characteristics are so reliable and efficient except that

the respondents revealed that Information is generally not a good representation of the

revenue and that Information is not a good representation of business liabilities Accounting

information characteristics are so meaningful and relevant as respondents agreed that

Information helps to predict and confirm expenditure levels, Information presented assists in

decision making on allocation of resources and that Information helps to confirm the

outcome of the planned activities.Accounting information characteristics are so meaningful

and can be understood by the users in that respondents agreed that

Information is presented in a readily understandable manner and that business assets are easy to

know in terms of value and assets.The researcher recommended that More emphasis among

financial institutions should be put on Accounting information characteristics as

results indicate that it promotes organizational performance, the Government and all the

other stake holders should fully support the use of accounting Information characteristics

in financial institutions and this involves investing in the sector to improve on the quality of

service delivery in the county,there is need to emphasize understandability of Information as

this was revealed as the most important accounting information characteristic to the users

of Accounting information.

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