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Does fintech lead to better accounting practices? Empirical evidence

Mandella Osei-Assibey Bonsu (Department of Finance, Performance and Marketing, International Business School, Teesside University, Middlesbrough, UK)
Ying Wang (Department of Accounting and Finance, Faculty of Business and Law, Anglia Ruskin University, Cambridge, UK)
Yongsheng Guo (Department of Finance, Performance and Marketing, International Business School, Teesside University, Middlesbrough, UK)

Accounting Research Journal

ISSN: 1030-9616

Article publication date: 17 April 2023

Issue publication date: 24 May 2023

1351

Abstract

Purpose

Innovation in fintech presents great opportunities and huge challenges for accounting practices around the world. This paper aims to examine the impact of Fintech on accounting practices including financial reporting, performance management, budgeting, auditing, risk and fraud management. Fintech is proxied by the adoption of AI and big data analysis in accounting practices.

Design/methodology/approach

We chose African countries as our focus countries and surveyed chartered and qualified accountants in both Ghana and Nigeria. With 201 questionnaires qualified for our final analyses, we adopted the structural equation modelling to analyse the impact of Fintech on accounting practices.

Findings

The empirical results show that the impact of AI and big data on accounting practices is positive and significant, indicating that fintech could potentially mitigate the agency problem in accounting practices and lead to better accounting practices. Interestingly, we find that, in general, the impact of AI is larger than that of big data.

Originality/value

Our results provide significant insights to regulators, policymakers and managers about the future development of adopting fintech in the regulation and governance framework at both macro and micro levels for accounting practice.

Keywords

Acknowledgements

Authors would like to thank the Editor and anonymous viewers for their constructive feedbacks to improved the quality of the paper.

The research did not receive any fund support.

Citation

Osei-Assibey Bonsu, M., Wang, Y. and Guo, Y. (2023), "Does fintech lead to better accounting practices? Empirical evidence", Accounting Research Journal, Vol. 36 No. 2/3, pp. 129-147. https://doi.org/10.1108/ARJ-07-2022-0178

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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