Information system structure and the demand for monitoring costs
It is claimed that information system structure can affect the coordination, monitoring and controlling of organisational activities, and in turn reduce the costs involved. This paper aims to investigate how the information system structure of an organisation affects its demand and preference for mo...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/39509/ http://psasir.upm.edu.my/id/eprint/39509/1/39509.pdf |
| _version_ | 1848849162001448960 |
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| author | Mustapha, Mazlina Ismail, Hashanah |
| author_facet | Mustapha, Mazlina Ismail, Hashanah |
| author_sort | Mustapha, Mazlina |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | It is claimed that information system structure can affect the coordination, monitoring and controlling of organisational activities, and in turn reduce the costs involved. This paper aims to investigate how the information system structure of an organisation affects its demand and preference for monitoring costs in Malaysian business environment. About 867 questionnaires were distributed to public listed companies in Malaysia, however, only 235 questionnaires were completed and usable for the purpose of the study. Descriptive statistics and regression analysis were carried out to analyze the data. The findings indicate that companies using centralised information system structure have negative and significant relationship with total monitoring costs, this result may be explained by the fact that the agents’ self interest behaviour can be monitored by the centralised system. However the information system structure is not significant when the cost of directorship and auditing are compared. But when internal auditing and external auditing costs are compared, the result indicates that companies with centralised information system structure have significantly more internal auditing costs. This paper contributes to the literature relating to the relationship between information system structures and monitoring costs, especially in Malaysian business settings. |
| first_indexed | 2025-11-15T09:46:00Z |
| format | Article |
| id | upm-39509 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:46:00Z |
| publishDate | 2013 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-395092015-08-04T00:47:07Z http://psasir.upm.edu.my/id/eprint/39509/ Information system structure and the demand for monitoring costs Mustapha, Mazlina Ismail, Hashanah It is claimed that information system structure can affect the coordination, monitoring and controlling of organisational activities, and in turn reduce the costs involved. This paper aims to investigate how the information system structure of an organisation affects its demand and preference for monitoring costs in Malaysian business environment. About 867 questionnaires were distributed to public listed companies in Malaysia, however, only 235 questionnaires were completed and usable for the purpose of the study. Descriptive statistics and regression analysis were carried out to analyze the data. The findings indicate that companies using centralised information system structure have negative and significant relationship with total monitoring costs, this result may be explained by the fact that the agents’ self interest behaviour can be monitored by the centralised system. However the information system structure is not significant when the cost of directorship and auditing are compared. But when internal auditing and external auditing costs are compared, the result indicates that companies with centralised information system structure have significantly more internal auditing costs. This paper contributes to the literature relating to the relationship between information system structures and monitoring costs, especially in Malaysian business settings. Faculty of Economics and Management, Universiti Putra Malaysia 2013-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/39509/1/39509.pdf Mustapha, Mazlina and Ismail, Hashanah (2013) Information system structure and the demand for monitoring costs. International Journal of Economics and Management, 7 (2). pp. 396-407. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol7_no2.htm |
| spellingShingle | Mustapha, Mazlina Ismail, Hashanah Information system structure and the demand for monitoring costs |
| title | Information system structure and the demand for monitoring costs |
| title_full | Information system structure and the demand for monitoring costs |
| title_fullStr | Information system structure and the demand for monitoring costs |
| title_full_unstemmed | Information system structure and the demand for monitoring costs |
| title_short | Information system structure and the demand for monitoring costs |
| title_sort | information system structure and the demand for monitoring costs |
| url | http://psasir.upm.edu.my/id/eprint/39509/ http://psasir.upm.edu.my/id/eprint/39509/ http://psasir.upm.edu.my/id/eprint/39509/1/39509.pdf |