The Effect Of ERP System Implementations On The Quality Of Accounting Information

Enterprise Resource Planning is the popular management information system in present. It is originally defined by Gartner Group Company in the1990. ERP system is committed to manage the entire supply chain, improve the management level and efficiency, achieve optimal allocation of resources and further improve the speed that the company responses to market. As an IT system, the implementation of ERP system is bound to have an impact on the quality of accounting information of the company. Some scholars believe that the implementation of ERP system can improve the transparency of accounting information and reduce the level of earnings management, Thereby the quality of accounting information would be improved. Other scholars believe that one of the negative effects raised by the implementation of ERP systems is to reduce the effectiveness of internal control and increase the level of earnings management, so the quality of accounting information would be reduced. We can see that conclusions about the impact of the implementation of ERP systems on the quality of accounting information are not consistent. This paper will expand empirical research on this issue.Focusing on the relationship between the implementation of ERP systems and the quality of accounting information, this paper evaluate the quality of accounting information by using the Evaluation of Information Disclosure at Shenzhen Stock Market and earnings management. Through empirical testing, we find that when evaluate the quality of accounting information by using the Evaluation of Information Disclosure at Shenzhen Stock Market, the implementation of ERP systems can significantly improve the quality of accounting information of companies. While evaluate the quality of accounting information by using earnings management, we find that the implementation of ERP systems can reduce the level of earnings management, but it is not significant. Therefore, based on the above results, although we can not fully prove that the implementation of ERP systems can significantly improve the quality of accounting information of companies, we can draw an important conclusion that the implementation of ERP systems can not reduce the quality of accounting information of companies.This paper has following contribution:(1) we draw the conclusion that the implementation of ERP systems can not reduce the quality of accounting information of companies. Existing domestic research agreed that the implementation of the ERP system may enhance the earnings management, so the quality of accounting information will be reduced. But this paper suggests that the implementation of ERP systems can not reduce the quality of accounting information of companies.(2) This paper evaluates the quality of accounting information by using the Evaluation of Information Disclosure at Shenzhen Stock Market and earnings management. Existing researches measure the quality of accounting information focus on using earnings management as proxy variables. This paper enriches the research in this field.