Digital Accounting Dynamics: Unmasking Disruption and Gauging Its Impact on Financial Paradigms
Abstract
The study provides the empirical analysis of the impact of disruptions in accounting on the financial paradigms of 20 large Ukrainian companies for 2019-2023. The aim of the research is to analyse and explain how these disruptions affect financial performance indicators, such as Return on Assets (ROA), company stability, and market value. The research employed a panel data model, where the dependent variable is the financial performance of the companies and disruptions in accounting are the independent variables. The data were collected from publicly available financial statements, audit reports, and macroeconomic indicators. The study applied a fixed-effect and random-effect regression model to measure the relationship between disruptions in accounting and financial indicators. Company size, industry type, and other macroeconomic conditions (e.g., Gross Domestic Product (GDP) growth) are control variables. Disruptions in accounting have a significant negative impact on financial performance, including restatements, reporting delays, and qualified audit opinions, which causes a decrease in ROA. GDP growth is a macroeconomic factor that positively affects financial performance, while company size mitigates the negative impact of accounting accuracy on performance. The results show that accurate and timely financial reporting is important for maintaining investor confidence and financial stability. This study is one of the first studies to examine how disruptions in accounting affect Ukrainian companies, provides an up-to-date conceptual understanding of the relationship between financial reporting practices and financial performance in a transformational economy.
References
[1] Adedoyin, F. F., et al. (2021). Environmental consequences of economic complexities in the EU amidst a booming tourism industry: Accounting for the role of Brexit and other crisis events. Journal of Cleaner Production, 305: 127117. DOI: https://doi.org/10.1016/j.jclepro.2021.127117
[2] Alassuli, A., et al. (2025). The impact of accounting digital transformation on financial transparency: mediating role of good governance. Journal of Risk and Financial Management, 18(5): 272. DOI:https://doi.org/10.3390/jrfm18050272
[3] Al-Okaily, M., and Alsmadi, A. A. (2024). The role of metaverse and blockchain in enhancing digital Islamic finance: Empirical perspective. Journal of Islamic Marketing ahead-of-print. DOI:10.1108/JIMA-11-2023-0369
[4] Al-Okaily, M., et al. (2024). The role of digital accounting transformation in the banking industry sector: An integrated model. Journal of Financial Reporting and Accounting, 22(2): 308–326. DOI:https://doi.org/10.1108/JFRA-04-2023-0214
[5] Amin, H. M.G., Hassan, R. S., Ghoneim, H. and Abdallah, A.S. (2025). A bibliometric analysis of accounting education literature in the digital era: Current status, implications and agenda for future research. Journal of Financial Reporting and Accounting, 23(2): 742–768. DOI: https://doi.org/10.1108/JFRA-12-2023-0802
[6] Avdimetaj, E., Lulaj, E. and Alcoriza, G.B. (2025). Bridging theory to practice: Empowering indigenous businesses through innovative analysis of audited financial statements. In I. Ghosal, S. Gupta, S. Rana, and D. Saha (Eds.), Indigenous empowerment through human-machine interactions (pp. 35–52). Leeds: Emerald Publishing Limited. DOI: https://doi.org/10.1108/978-1-83608-068-820251003
[7] Bila, Y. (2024). Genesis of the development of accounting paradigms: a scientific analysis. Herald of Economics, 2: 116–130. DOI: https://doi.org/10.35774/visnyk2024.02.116
[8] Cho, C. H., Senn, J. and Sobkowiak, M. (2022). Sustainability at stake during COVID-19: Exploring the role of accounting in addressing environmental crises. Critical Perspectives on Accounting, 82: 102327. DOI:https://doi.org/10.1016/j.cpa.2021.102327
[9] Chu, M. K., and Yong, K. O. (2021). Big data analytics for business intelligence in accounting and audit. Open Journal of Social Sciences, 9(9): 42–52. DOI: https://doi.org/10.4236/jss.2021.99004
[10] De Silva, P., Gunarathne, N. and Kumar, S. (2025). Exploring the impact of digital knowledge, integration and performance on sustainable accounting, reporting and assurance. Meditari Accountancy Research, 33(2): 497–552. DOI: https://doi.org/10.1108/MEDAR-02-2024-2383
[11] Hamundu, F. M., Husin, M.H., Baharudin, A.S. and Khaleel, M. (2020). Intention to adopt cloud accounting: A conceptual model from Indonesian MSMEs perspectives. Journal of Asian Finance, Economics, and Business, 7(12): 749–759. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no12.749
[12] Jayasuriya, D. D., and Sims, A. (2023). From the abacus to enterprise resource planning: Is blockchain the next big accounting tool? Accounting, Auditing & Accountability Journal, 36(1): 24–62. DOI:https://doi.org/10.1108/AAAJ-08-2020-4718
[13] Kearns-Manolatos, D., Scoble-Williams, N. and Darbyshire, R. (2024). Business transformation in the digital era. Available at: https://www2.deloitte.com/us/en/blog/human-capital-blog/2024/digital-business-transformation-and-data.html
[14] Knudsen, D.-R. (2020). Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting. International Journal of Accounting Information Systems, 36: 100441. DOI: https://doi.org/10.1016/j.accinf.2019.100441
[15] Koh, L., Orzes, G. and Jia, F. (2019). The fourth industrial revolution (Industry 4.0): Technologies disruption on operations and supply chain management. International Journal of Operations & Production Management, 39(6/7/8): 817–828. DOI: https://doi.org/10.1108/IJOPM-08-2019-788
[16] Komelina, Ð., Vasiuta, V. and Miniailenko, I. (2018). Spatial development of construction: Modeling and its financial and investment support. International Journal of Engineering and Technology, 7(3): 183–190. DOI:https://doi.org/10.14419/ijet.v7i3.2.14400
[17] Levytska, S., et al. (2022). A risk-oriented approach in the system of internal auditing of the subjects of financial monitoring. International Journal of Applied Economics, Finance and Accounting, 14(2): 194–206. DOI: https://doi.org/10.33094/ijaefa.v14i2.715
[18] Lodhia, S., Sharma, U. and Low, M. (2021). Creating value: Sustainability and accounting for non-financial matters in the pre- and post-corona environment. Meditari Accounting Research, 29(2): 185–196. DOI:https://doi.org/10.1108/MEDAR-03-2021-1249
[19] Lulaj, E., and Brajković, M. (2025). The moderating role of finance, accounting, and digital disruption in ESG, financial reporting, and auditing: A triple-helix perspective. Journal of Risk and Financial Management 18(5): 245. DOI: https://doi.org/10.3390/jrfm18050245
[20] Mazur, V., Koldovskyi, A., Ryabushka, L. and Yakubovska, N. (2023). The formation of a rational model of management of the construction company’s capital structure. Financial and Credit Activity: Problems of Theory and Practice, 6(53): 128–144. DOI: https://doi.org/10.55643/fcaptp.6.53.2023.4223
[21] Prokopenko, O., Chechel, A., Koldovskiy, A. and Kldiashvili, M. (2024). Innovative models of green entrepreneurship: Social impact on sustainable development of local economies. Economics Ecology Socium, 8(1): 89–111. DOI: https://doi.org/10.61954/2616-7107/2024.8.1-8
[22] Schaltegger, S. (2020). Unsustainability as a key source of epi- and pandemics: Conclusions for sustainability and ecosystems accounting. Journal of Accounting & Organizational Change, 16(4): 613–619. DOI: https://doi.org/10.1108/JAOC-08-2020-0117
[23] Secinaro, S., Dal Mas, F., Brescia, V. and Calandra, D. (2021). Blockchain in the accounting, auditing and accountability fields: A bibliometric and coding analysis. Accounting, Auditing and Accountability Journal, 35(9): 168–203. DOI: https://doi.org/10.1108/AAAJ-10-2020-4987
[24] Sukanthasirikul, K., and Phornlaphatrachakorn, K. (2021). Product innovation accounting, customer response capability and market success: An empirical investigation in Thailand. The Journal of Asian Finance, Economics and Business, 8(10): 65–76. DOI: 10.13106/JAFEB.2021.VOL8.NO10.0065
[25] Sydorchuk, O., et al. (2024). Integrating digitization into public administration: Impact on national security and the economy through spatial planning. Edelweiss Applied Science and Technology, 8(5): 747–759. DOI:https://doi.org/10.55214/25768484.v8i5.1740
[26] Tettamanzi, P., Venturini, G. and Murgolo, M. (2022). Sustainability and financial accounting: A critical review on the ESG dynamics. Environmental Science and Pollution Research, 29: 16758–16761. DOI:https://doi.org/10.1007/s11356-022-18596-2
[27] Tregidga, H., and Laine, M. (2022). On crisis and emergency: Is it time to rethink long-term environmental accounting? Critical Perspectives on Accounting, 82: 102311. DOI: https://doi.org/10.1016/j.cpa.2021.102311
[28] Truong, T.-M., Lê, L.-S., Paja, E. and Giorgini, P. (2021). A data-driven, goal-oriented framework for process-focused enterprise re-engineering. Information Systems and E-Business Management, 19(2): 683–747. DOI:https://doi.org/10.1007/s10257-021-00523-6
[29] Tsiligiris, V., and Bowyer, D. (2021). Exploring the impact of 4IR on skills and personal qualities for future accountants: a proposed conceptual framework for university accounting education. Accounting Education 30(6): 621–649. DOI: https://doi.org/10.1080/09639284.2021.1938616
[30] Yau-Yeung, D., Yigitbasioglu, O. and Green, P. (2020). Cloud accounting risks and mitigation strategies: Evidence from Australia. Accounting Forum, 44(4): 421–446. DOI:https://doi.org/10.1080/01559982.2020.1783047
[31] Youssef, M.A. El-Aziz, and Mahama, H. (2021). Does business intelligence mediate the relationship between ERP and management accounting practices? Journal of Accounting and Organizational Change, 17(5): 686–703. DOI: https://doi.org/10.1108/JAOC-02-2020-0026
[32] Derzhstat. (2024). Industry. https://stat.gov.ua/en/topics/industry
[33] IMF. (2023). International financial statistics. https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=-1
[34] IMF. (2024). Global financial stability report. https://data.imf.org/?sk=388dfa60-1d26-4ade-b505-a05a558d9a42
[35] PwC. (2023). Digitalisation in finance and accounting. https://www.pwc.de/en/digitalisation-in-finance-and-accounting.html
[36] World Bank. (2023). The world development indicators. https://datatopics.worldbank.org/world-development-indicators/
[37] World Bank. (2024). World bank open data. https://data.worldbank.org/
[2] Alassuli, A., et al. (2025). The impact of accounting digital transformation on financial transparency: mediating role of good governance. Journal of Risk and Financial Management, 18(5): 272. DOI:https://doi.org/10.3390/jrfm18050272
[3] Al-Okaily, M., and Alsmadi, A. A. (2024). The role of metaverse and blockchain in enhancing digital Islamic finance: Empirical perspective. Journal of Islamic Marketing ahead-of-print. DOI:10.1108/JIMA-11-2023-0369
[4] Al-Okaily, M., et al. (2024). The role of digital accounting transformation in the banking industry sector: An integrated model. Journal of Financial Reporting and Accounting, 22(2): 308–326. DOI:https://doi.org/10.1108/JFRA-04-2023-0214
[5] Amin, H. M.G., Hassan, R. S., Ghoneim, H. and Abdallah, A.S. (2025). A bibliometric analysis of accounting education literature in the digital era: Current status, implications and agenda for future research. Journal of Financial Reporting and Accounting, 23(2): 742–768. DOI: https://doi.org/10.1108/JFRA-12-2023-0802
[6] Avdimetaj, E., Lulaj, E. and Alcoriza, G.B. (2025). Bridging theory to practice: Empowering indigenous businesses through innovative analysis of audited financial statements. In I. Ghosal, S. Gupta, S. Rana, and D. Saha (Eds.), Indigenous empowerment through human-machine interactions (pp. 35–52). Leeds: Emerald Publishing Limited. DOI: https://doi.org/10.1108/978-1-83608-068-820251003
[7] Bila, Y. (2024). Genesis of the development of accounting paradigms: a scientific analysis. Herald of Economics, 2: 116–130. DOI: https://doi.org/10.35774/visnyk2024.02.116
[8] Cho, C. H., Senn, J. and Sobkowiak, M. (2022). Sustainability at stake during COVID-19: Exploring the role of accounting in addressing environmental crises. Critical Perspectives on Accounting, 82: 102327. DOI:https://doi.org/10.1016/j.cpa.2021.102327
[9] Chu, M. K., and Yong, K. O. (2021). Big data analytics for business intelligence in accounting and audit. Open Journal of Social Sciences, 9(9): 42–52. DOI: https://doi.org/10.4236/jss.2021.99004
[10] De Silva, P., Gunarathne, N. and Kumar, S. (2025). Exploring the impact of digital knowledge, integration and performance on sustainable accounting, reporting and assurance. Meditari Accountancy Research, 33(2): 497–552. DOI: https://doi.org/10.1108/MEDAR-02-2024-2383
[11] Hamundu, F. M., Husin, M.H., Baharudin, A.S. and Khaleel, M. (2020). Intention to adopt cloud accounting: A conceptual model from Indonesian MSMEs perspectives. Journal of Asian Finance, Economics, and Business, 7(12): 749–759. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no12.749
[12] Jayasuriya, D. D., and Sims, A. (2023). From the abacus to enterprise resource planning: Is blockchain the next big accounting tool? Accounting, Auditing & Accountability Journal, 36(1): 24–62. DOI:https://doi.org/10.1108/AAAJ-08-2020-4718
[13] Kearns-Manolatos, D., Scoble-Williams, N. and Darbyshire, R. (2024). Business transformation in the digital era. Available at: https://www2.deloitte.com/us/en/blog/human-capital-blog/2024/digital-business-transformation-and-data.html
[14] Knudsen, D.-R. (2020). Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting. International Journal of Accounting Information Systems, 36: 100441. DOI: https://doi.org/10.1016/j.accinf.2019.100441
[15] Koh, L., Orzes, G. and Jia, F. (2019). The fourth industrial revolution (Industry 4.0): Technologies disruption on operations and supply chain management. International Journal of Operations & Production Management, 39(6/7/8): 817–828. DOI: https://doi.org/10.1108/IJOPM-08-2019-788
[16] Komelina, Ð., Vasiuta, V. and Miniailenko, I. (2018). Spatial development of construction: Modeling and its financial and investment support. International Journal of Engineering and Technology, 7(3): 183–190. DOI:https://doi.org/10.14419/ijet.v7i3.2.14400
[17] Levytska, S., et al. (2022). A risk-oriented approach in the system of internal auditing of the subjects of financial monitoring. International Journal of Applied Economics, Finance and Accounting, 14(2): 194–206. DOI: https://doi.org/10.33094/ijaefa.v14i2.715
[18] Lodhia, S., Sharma, U. and Low, M. (2021). Creating value: Sustainability and accounting for non-financial matters in the pre- and post-corona environment. Meditari Accounting Research, 29(2): 185–196. DOI:https://doi.org/10.1108/MEDAR-03-2021-1249
[19] Lulaj, E., and Brajković, M. (2025). The moderating role of finance, accounting, and digital disruption in ESG, financial reporting, and auditing: A triple-helix perspective. Journal of Risk and Financial Management 18(5): 245. DOI: https://doi.org/10.3390/jrfm18050245
[20] Mazur, V., Koldovskyi, A., Ryabushka, L. and Yakubovska, N. (2023). The formation of a rational model of management of the construction company’s capital structure. Financial and Credit Activity: Problems of Theory and Practice, 6(53): 128–144. DOI: https://doi.org/10.55643/fcaptp.6.53.2023.4223
[21] Prokopenko, O., Chechel, A., Koldovskiy, A. and Kldiashvili, M. (2024). Innovative models of green entrepreneurship: Social impact on sustainable development of local economies. Economics Ecology Socium, 8(1): 89–111. DOI: https://doi.org/10.61954/2616-7107/2024.8.1-8
[22] Schaltegger, S. (2020). Unsustainability as a key source of epi- and pandemics: Conclusions for sustainability and ecosystems accounting. Journal of Accounting & Organizational Change, 16(4): 613–619. DOI: https://doi.org/10.1108/JAOC-08-2020-0117
[23] Secinaro, S., Dal Mas, F., Brescia, V. and Calandra, D. (2021). Blockchain in the accounting, auditing and accountability fields: A bibliometric and coding analysis. Accounting, Auditing and Accountability Journal, 35(9): 168–203. DOI: https://doi.org/10.1108/AAAJ-10-2020-4987
[24] Sukanthasirikul, K., and Phornlaphatrachakorn, K. (2021). Product innovation accounting, customer response capability and market success: An empirical investigation in Thailand. The Journal of Asian Finance, Economics and Business, 8(10): 65–76. DOI: 10.13106/JAFEB.2021.VOL8.NO10.0065
[25] Sydorchuk, O., et al. (2024). Integrating digitization into public administration: Impact on national security and the economy through spatial planning. Edelweiss Applied Science and Technology, 8(5): 747–759. DOI:https://doi.org/10.55214/25768484.v8i5.1740
[26] Tettamanzi, P., Venturini, G. and Murgolo, M. (2022). Sustainability and financial accounting: A critical review on the ESG dynamics. Environmental Science and Pollution Research, 29: 16758–16761. DOI:https://doi.org/10.1007/s11356-022-18596-2
[27] Tregidga, H., and Laine, M. (2022). On crisis and emergency: Is it time to rethink long-term environmental accounting? Critical Perspectives on Accounting, 82: 102311. DOI: https://doi.org/10.1016/j.cpa.2021.102311
[28] Truong, T.-M., Lê, L.-S., Paja, E. and Giorgini, P. (2021). A data-driven, goal-oriented framework for process-focused enterprise re-engineering. Information Systems and E-Business Management, 19(2): 683–747. DOI:https://doi.org/10.1007/s10257-021-00523-6
[29] Tsiligiris, V., and Bowyer, D. (2021). Exploring the impact of 4IR on skills and personal qualities for future accountants: a proposed conceptual framework for university accounting education. Accounting Education 30(6): 621–649. DOI: https://doi.org/10.1080/09639284.2021.1938616
[30] Yau-Yeung, D., Yigitbasioglu, O. and Green, P. (2020). Cloud accounting risks and mitigation strategies: Evidence from Australia. Accounting Forum, 44(4): 421–446. DOI:https://doi.org/10.1080/01559982.2020.1783047
[31] Youssef, M.A. El-Aziz, and Mahama, H. (2021). Does business intelligence mediate the relationship between ERP and management accounting practices? Journal of Accounting and Organizational Change, 17(5): 686–703. DOI: https://doi.org/10.1108/JAOC-02-2020-0026
[32] Derzhstat. (2024). Industry. https://stat.gov.ua/en/topics/industry
[33] IMF. (2023). International financial statistics. https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=-1
[34] IMF. (2024). Global financial stability report. https://data.imf.org/?sk=388dfa60-1d26-4ade-b505-a05a558d9a42
[35] PwC. (2023). Digitalisation in finance and accounting. https://www.pwc.de/en/digitalisation-in-finance-and-accounting.html
[36] World Bank. (2023). The world development indicators. https://datatopics.worldbank.org/world-development-indicators/
[37] World Bank. (2024). World bank open data. https://data.worldbank.org/
Published
2025-06-30
How to Cite
ALNAIMAT, Mohammad Ahmad et al.
Digital Accounting Dynamics: Unmasking Disruption and Gauging Its Impact on Financial Paradigms.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 16, n. 2, p. 482-491, june 2025.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8938>. Date accessed: 16 july 2025.
doi: https://doi.org/10.14505/tpref.v16.2(34).17.
Section
Articles
Non-Exclusive License under Attribution 4.0 International Public License (CC BY 4.0):
This ‘Article’ is distributed under the terms of the license CC-BY 4.0., which lets others distribute, remix, adapt, and build upon this article, even commercially, as long as they credit this article for the original creation. ASERS Publishing will be acknowledged as the first publisher of the Article and a link to the appropriate bibliographic citation (authors, article title, volume issue, page numbers, DOI, and the link to the Published Article on ASERS Publishing’ Platform) must be maintained.