The Impact of Blockchain Technology on Enhancing Accounting Information Transparency and Reducing Financial Waste: An Applied Study of a Sample of Government Institutions in Al-Muthanna Governorate

Abstract

This study aims to examine the impact of blockchain technology on enhancing accounting information transparency and reducing financial waste, amid the growing trend toward adopting digital technologies to develop accounting and control systems. The study employed a descriptive-analytical approach, while its applied component was based on a simulation model involving a hypothetical sample of 100 individuals working in accounting, finance, and control. A questionnaire consisting of 24 items distributed across the study variables was used. The simulation results revealed a positive correlation between blockchain technology and accounting information transparency, with a correlation coefficient of (0.724). They also indicated a positive correlation between blockchain technology and the reduction of financial waste, with a correlation coefficient of (0.681). Furthermore, the regression models showed that blockchain technology statistically explained 52.4% of the variance in accounting information transparency and 46.4% of the variance in financial waste reduction, based on the simulated data. The study concluded that utilizing blockchain technology's features, particularly transaction traceability, data verifiability, and ledger interconnectedness, could contribute to strengthening the accounting and control environment. The findings also indicated that the relationship between blockchain technology and accounting information transparency was relatively stronger than its relationship with financial waste reduction. This may be explained by the fact that transparency is directly associated with the features of recording, traceability, and verification, whereas financial waste is influenced by multiple factors, including administrative, organizational, and human factors, in addition to accounting and technological considerations. The study recommended providing appropriate technological and organizational infrastructure and developing qualified human resources to support the effective adoption of this technology in improving accounting and control systems and reducing financial waste.