Effect of E-Financial Documentation and Statements on Operating Costs in Universities in Kenya.

Abstract

Institutions globally have embraced electronic systems of managing documents and generation of financial statements ranging from maintenance of ledgers, extraction of the trail balance and automated income statement and statement of financial position. This study sought to analyze the effect of e-financial documentation and statements on operating costs in universities in Kenya. The study was guided by theory of reasoned action and technology acceptance model. The target population was 80 employees drawn from 8 universities, four public universities and four private universities operating in Mount Kenya region. Census was used to collect the data from target population. A self-administered semi-structured questionnaire was distributed to the target population. A total of 71 questionnaires were returned giving a response rate of 88.75%. Statistical package was used to undertake descriptive and inferential statistical analysis. Descriptive analysis was done using both means and standard deviations. Bivariate linear regressions were used to assess the effect of e-financial documentation and statements on operating costs. Model R2, ANOVA Statistics (F Statistic and associated p-value) and regression coefficients (Beta and associated p-value) were generated and interpreted. The Bivariate results indicated that online financial documentation have a significant effect on the operating cost of universities. Electronic financial statements had an insignificant effect on operating costs of universities. This study concludes that online financial documentation affects organization costs in the universities. The study recommends the need to sensitize management of universities and other organizations on the importance of electronic financial services because they could reduce operating costs.