The effect of alignment between AIS requirements and AIS capacity on firm's performance

This study focused on measuring the alignment between AIS requirements and AIS capacity, then investigating whether this AIS alignment is linked to firm performance. AIS alignment with 19 accounting information characteristics for both requirement and capacity, with using questionnaire, was evaluated by financial managers of 93 manufacturing companies listed at Tehran stock exchange. Average of the return on equity, price/ earnings ratio, the carefulness of profit prediction and financial reports rapidness, for years of 1387 and 1388 (Iranian calendar) are used as performance criteria. Two statistical methods were performed to indicate association between AIS alignment and firms’ performance. The results of testing four hypotheses by two methods indicated that the companies with high AIS alignment had achieved better organizational performance than low AIS alignment. The findings provided evidence of the positive relation between AIS alignment and firms’ performance. Since performance and efficiency are important for the companies, investors, bankers and country industrial development planning, therefore training accountants can help successful implementation of AIS.