Author(s): Albertina Paula Monteiro, Joana Vale, Amelia Silva, Claudia Pereira
The purpose of this study is to investigate factors that affect Usefulness of Financial Information. In addition, we specifically analyse the effect of both Quality of Internal Control System and Quality of Accounting Information System on the Quality of Financial Reporting and, consequently, on Usefulness of Financial Information. We used a survey design which was applied to 381 Portuguese's managers and they responded to a digital questionnaire. Data was submitted to a structural equations model to obtain the dependent variables and after we performed a multivariate statistical analysis and a linear regression model to determine the factors that affect the Quality of Financial Reporting. The results show a good fit of the model. Main findings show that Quality of Financial Reporting is directly impacted by Quality of the Internal Control System and Quality of the Accounting Information System. Furthermore, Quality of Financial Reporting is a predictive variable of the Usefulness of Financial Information and it mediates the relationship between the information systems and Usefulness of Financial Information. These findings may assist organizations in evaluating and enhancing the quality of their information. However, once the study used a sample for convenience and non-probabilistic, the generalization of its results is limited. This study purposes an original model. These findings highlight the catalyst role of Quality of Internal control and accounting systems on Quality of Financial Reporting and Usefulness of Financial Information.