CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0 Introduction

This chapter presents that data presentation, interpretation and analysis that related
the specific objectives that include the role of computerized accounting towards
financial performance, factors effecting financial performance at premier bank and
the relationship between computerized accounting and financial performance.

4.1 Personal information

Table 4. 1 Sex of respondent

Frequency Percent
Valid Male 9 69.2
Female 4 30.8
Total 13 100.0

Source: Primary data 2024

The table 4.1 above and the figure below indicate that 9(69.2%) of the respondents
were male and 4(30.8%) of the respondents were female. This implies that the
majority of the respondents were male. This is because that Premier bank requite/
employed male gender and also believes that men had worker than the female.
 Gnder of respondent

70
60
50
69.2
Percent

40
30
20
30.8
10
0
Male Female
Sex

Table 4. 2 Marital status

Frequency Percent
Valid Married 3 23.1
Single 6 46.2
Divorced 4 30.8
Total 13 100.0

Source: Primary data 2024

According to the table 4.2 above illustrates that 3(23.1%) of the respondents were
married, 6(46.2%) of the respondents were single and 4(30.8%) of them were
divorced. This implies that the majority of the respondents were single.

Table 4. 3 Age

Frequency Percent
Valid 20-29 11 84.6

40-49 2 15.4
Total 13 100.0

Source: Primary data 2024

Table 4.3 shows the age distribution of a sample of 13 individuals. The majority of
the sample, 84.6% (11 individuals), are aged between 20 and 29 years. The
remaining 15.4% (2 individuals) fall within the 40 to 49 age range. This indicates a
predominantly younger demographic in the sample.
Table 4. 4 Educational level

Frequency Percent
Valid Degree 7 53.8

Master's degree 3 23.1

P. HD 3 23.1
Total 13 100.0

Source: Primary data 2024

Table 4.4 presents the educational level distribution of a sample of 13 individuals.

Over half of the sample, 53.8% (7 individuals), hold a degree. Additionally, 23.1% (3
individuals) have a master's degree, and another 23.1% (3 individuals) have a Ph.D.
This indicates that the sample is relatively well-educated, with all individuals holding
at least a degree.

4.2 Computerized accounting

Table 4. 5 Descriptive Statistics of computerized accounting system at Salaam bank

Std.
Statement N Min Max Mean Deviation
Computerized accounting significantly increases 13 1.00 5.00 3.615 1.19293
the efficiency of financial processes, allowing 4
Premier Bank to handle transactions more
quickly and accurately
Automated systems reduce human error, 13 3.00 5.00 4.076 .86232
ensuring that financial records are precise and 9
reliable
Computerized accounting provides detailed 13 2.00 5.00 3.923 1.11516
financial reports and analytics, facilitating better 1
strategic planning and performance evaluation
Total average 13 3.872 1.056

Source: Primary data 2024

Table 4.5 provides descriptive statistics for the perceptions of the computerized
accounting system at Premier Bank based on responses from 13 participants. The
table includes three statements related to the effectiveness and benefits of the
computerized accounting system, along with the number of responses (N), minimum
and maximum ratings, mean scores, and standard deviations for each statement.

The first statement, "Computerized accounting significantly increases the efficiency

of financial processes, allowing Premier Bank to handle transactions more quickly
and accurately," received ratings ranging from 1.00 to 5.00. The mean score for this
statement is 3.6154, with a standard deviation of 1.19293. This suggests a moderate
agreement among respondents, with some variability in their perceptions.

The second statement, "Automated systems reduce human error, ensuring that
financial records are precise and reliable," had ratings between 3.00 and 5.00. The
mean score is higher at 4.0769, and the standard deviation is lower at 0.86232. This
indicates stronger and more consistent agreement among respondents regarding the
role of automated systems in reducing human error and enhancing the reliability of
financial records.

For the third statement, "Computerized accounting provides detailed financial reports
and analytics, facilitating better strategic planning and performance evaluation," the
ratings varied from 2.00 to 5.00. The mean score here is 3.9231, with a standard
deviation of 1.11516. This reflects a generally positive perception of the system's
ability to provide detailed financial reports and support strategic planning, though
there is some variability in the responses.

Overall, the total average mean score across all three statements is 3.872 with a
standard deviation of 1.056. This indicates that, on average, respondents have a
favorable view of the computerized accounting system at Salaam Bank, recognizing
its benefits in enhancing efficiency, reducing errors, and supporting strategic
financial management, though opinions vary to some extent.

4.3 Financial performance

Table 4. 6 Descriptive Statistics of financial performance at Premier bank in

Mogadishu Somalia
Std.
Statement N Min Max Mean Deviation
Competitive pressure from other banks and 13 2.00 5.00 4.076 .95407
financial institutions can impact market share and 9
profitability
Economic stability in Somalia influences the 13 3.00 5.00 4.461 .66023
bank's performance by impacting customer 5
deposits and loan demand
Political conditions in Somalia can affect investor 13 3.00 5.00 4.384 .65044
confidence and the overall business environment 6
Total average 13 4.307 0.7575

Source: primary data 2024

Table 4.6 presents descriptive statistics for the financial performance of Premier
Bank in Mogadishu, Somalia, based on responses from 13 participants. The table
summarizes the participants' views on various factors affecting the bank's
performance, with each statement evaluated by the number of responses (N),
minimum and maximum ratings, mean scores, and standard deviations.

The first statement, "Competitive pressure from other banks and financial institutions
can impact market share and profitability," received ratings ranging from 2.00 to
5.00. The mean score for this statement is 4.0769, with a standard deviation of
0.95407. This suggests a strong agreement among respondents that competitive
pressure significantly affects the bank's market share and profitability, though there
is some variability in their perceptions.

The second statement, "Economic stability in Somalia influences the bank's

performance by impacting customer deposits and loan demand," had ratings between
3.00 and 5.00. The mean score is higher at 4.4615, with a lower standard deviation of
0.66023. This indicates a very strong and consistent agreement among respondents
that economic stability plays a crucial role in the bank's performance, affecting both
deposits and loan demand. For the third statement, "Political conditions in Somalia
can affect investor confidence and the overall business environment," the ratings also
varied from 3.00 to 5.00. The mean score here is 4.3846, with a standard deviation of
0.65044. This reflects a strong agreement among respondents that political
conditions significantly impact investor confidence and the business environment,
with relatively little variation in responses.

Overall, the total average mean score across all three statements is 4.307 with a
standard deviation of 0.7575. This indicates that, on average, respondents have a
very favorable view of the impact of competitive pressure, economic stability, and
political conditions on the financial performance of Premier Bank, recognizing the
significant influence of these factors on the bank's operations and profitability.

4.4 Relationship between CAS and financial performance

Table 4. 7 Correlations

Variable CAS FP
CAS Pearson Correlation 1 -.149
Sig. (2-tailed) .628
N 13 13
FP Pearson Correlation -.149 1
Sig. (2-tailed) .628
N 13 13
Source: Primary data 2024

Table 4.7 presents the correlation analysis between two variables: Computerized
Accounting System (CAS) and Financial Performance (FP) at Premier Bank. The
table shows the Pearson correlation coefficients, significance levels (Sig. 2-tailed),
and the number of observations (N) for each pair of variables. The Pearson
correlation coefficient between CAS and FP is -0.149, indicating a very weak
negative relationship. This suggests that as the effectiveness of the computerized
accounting system increases, financial performance slightly decreases, though this
relationship is not statistically significant.

The significance level (Sig. 2-tailed) for the correlation between CAS and FP is
0.628, which is much higher than the commonly used threshold of 0.05 for statistical
significance. This indicates that the observed correlation is not statistically
significant, meaning there is no strong evidence to suggest a meaningful relationship
between the computerized accounting system and financial performance in this
sample of 13 observations