The Influence of Company’s Age and Owner’s/Manager’s Education on the Use of Accounting Information in Small and Medium Enterprises

Abstract

This study was undertaken to find out if the company’s age and owner’s/manager’s education has an influence on the use of accounting information. A total of 60 SMEs were selected from 409 SMEs in industrial t-shirt center Bandung, West Java, Indonesia. Two sets of questionnaires were constructed. The responses to the questionnaires were complemented with personal interviews of the key operators by the researcher. The responses of the participants were analyzed using the Statistical Package for Social Sciences (SPSS). The main hypotheses of this research were tested at 0.05 level of significance, primary data were collected, and the data already tested in terms of their reliability and validity. Finally, the author found some evidence that the older the company’s age, the more is the use of the accounting information in SMEs and more educated an owner/manager is, the more is the use of accounting information in SMEs.