Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries

Hamdy, Arafat; Diab, Ahmed; Eissa, Aref M.

doi:10.3390/ijfs13010030

Open AccessArticle

Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries

by

Arafat Hamdy

^1,2

,

Ahmed Diab

^3,*

and

Aref M. Eissa

^2,4

¹

Faculty of Commerce, Beni-Suef University, Beni-Suef 62521, Egypt

²

Accounting Department, Majmaah University, Al Majmaah 15341, Saudi Arabia

³

Accounting Department, Prince Sultan University, Riyadh 12435, Saudi Arabia

⁴

Faculty of Commerce, Cairo University, Giza 12613, Egypt

^*

Author to whom correspondence should be addressed.

Int. J. Financial Stud. 2025, 13(1), 30; https://doi.org/10.3390/ijfs13010030

Submission received: 12 January 2025 / Revised: 31 January 2025 / Accepted: 25 February 2025 / Published: 28 February 2025

(This article belongs to the Special Issue Advancing Financial Stability and Performance Through AI and Digital Transformation)

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Abstract

This study explores how digital transformation affects the accounting and auditing profession and the quality of the accounting information system in governmental units in two developing contexts in the Middle East and North African (MENA) region—Egypt and Saudi Arabia. We collected data by electronically surveying governmental units’ employees in the two countries and analyzed them using linear regression analyses. Interestingly, we found a negative effect of digital transformation on the quality of accounting information systems, which could be interpreted concerning the premature status of digital technologies in emerging markets. However, the negative effect of digital transformation was lower in Egypt compared to Saudi Arabia. This study contributes to the literature by focusing on the governmental sector and investigating a new context—the MENA region—which has rarely been examined in previous studies. Further, it has implications for regulators in the public sector for developing governmental financial reports by supporting the digital transformation process.

Keywords: digital transformation; accounting; auditing; public sector; Egypt; Saudi Arabia

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MDPI and ACS Style

Hamdy, A.; Diab, A.; Eissa, A.M. Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries. Int. J. Financial Stud. 2025, 13, 30. https://doi.org/10.3390/ijfs13010030

AMA Style

Hamdy A, Diab A, Eissa AM. Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries. International Journal of Financial Studies. 2025; 13(1):30. https://doi.org/10.3390/ijfs13010030

Chicago/Turabian Style

Hamdy, Arafat, Ahmed Diab, and Aref M. Eissa. 2025. "Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries" International Journal of Financial Studies 13, no. 1: 30. https://doi.org/10.3390/ijfs13010030

APA Style

Hamdy, A., Diab, A., & Eissa, A. M. (2025). Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries. International Journal of Financial Studies, 13(1), 30. https://doi.org/10.3390/ijfs13010030

Note that from the first issue of 2016, this journal uses article numbers instead of page numbers. See further details here.

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Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries

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