1.1  BACKGROUND OF THE STUDY 

Robbins and DeCenzo (2005) defined organization as “a systematic arrangement of people brought together to achieve some specific objectives”. Hitt (2008) observes that organization is “the framework of responsibility, authority and duties through which the resources of an organisation are brought together and coordinated for the achievement of set objectives”. As expected organizations strive for survival and continuity on one hand, which are paramount; on the other hand, accounting information is essential and seen as the total package in relation to the quality and quantity of organisational success and succession. Scholars have long stressed the importance of succession planning in ensuring the continuity and growth of an organization/firm (Brockhouse, 2004). Some have even gone to the extent of stating that dealing effectively with the issue of succession planning is the single most lasting gift that one generation can bestow upon the next (Ayres, 1990). Unfortunately, succession planning appears to be left to chance by many business organisation (Leaon-Guerrero, 2003). Some researchers assert th apparent neglect of succession planning to the emotion generated by the process; it forces incumbents to face their mortality and makes other business colleagues contend the need for change (Beckhard and Dyer, 2003, Stern, 2004). Additional complication arises because the Chief Executive Officer Succession process within small business organisations is quite different from that of large firms. This is due, in large part, to the coincidence of personal and business interest in small business organisations (Davis, 2010). For instance, in the large corporations the date at which the Chief Executive Officer is replaced is usually agreed upon in advance and is determined by the Board of Directors. Also, the frequency of succession is greater in large firms because these companies themselves produce large number of successors (Gorden and Rosan, 2001). On the other hand, in typical business organisation, there is unlikely to be any consensus on when succession is going to take place based on the accounting information processes present and methods used in obtaining such. Moreover, the number of potential successors is limited to the level of transparency of accounting information process in such a firm or business organisation. Unfortunately, research studies (Beckhard and Dyer, 2000; Maynad, 1999) have indicated that when owners/managers retire, less than one-third of the small businesses are continued to the second generation, and less than half second generation firms make it with the third generation as a result of poor accounting information processes of such firms( BrahanMiller et al, 2004). Consequently, successful succession of the Chief Executive Officer is a crucial goal for business enterprises. Without the next generations’ leadership and direct management of accounting information, the firm cannot maintain its character, let alone survive. 

The poor performance of business organizations in Nigeria has been a massive problem as it has negatively influences the economy by throwing many people out of gainful employment and thus leading to the poor performance of the economy, this is because the private sector has proven to be the highest employer of labour in the country as such poor performance of these business organizations has directly affected the economy of the country. Many reasons have been highlighted as the cause of these poor business growth and succession but notable amongst these problems is the lack of effective accounting information as most firms in Nigeria ignore these accounting information to their peril as it becomes difficult to transfer a business from one hand to the other as a result of this.

The major aim of the study is to examine accounting information processing and succession of firms in Nigeria. Other specific objectives of the study include; 

1. To examine the level of accounting information practices in Nigerian business firms. 

2. To determine the importance of an effective accounting information process. 

3. To assess the level of business succession in Nigeria. 

4. To determine the relationship between accounting information processing and succession of firms in Nigeria. 

5. To examine the challenges to effective business succession in Nigeria. 6. To recommend ways of improving business succession in Nigeria. 

1.4  RESEARCH QUESTIONS 

1. What is the level of accounting information practices in Nigerian business firms? 

2. What is the importance of an effective accounting information process? 

3. What is the level of business succession in Nigeria? 

4. What is the relationship between accounting information processing and succession of firms in Nigeria?

5. What are the challenges to effective business succession in Nigeria? 

6. What are the ways of improving business succession in Nigeria? 

1.5  RESEARCH HYPOTHESIS 

HO: There is no significant relationship between accounting information processing and succession in Nigeria 

HA: There is a significant relationship between accounting information processing and succession in Nigeria 

1.6  SIGNIFICANCE OF THE STUDY 

The study would be of immense benefit to the business world, government at all levels and all related stakeholders as it would improve unveil the impact of information processing on succession of firms in Nigeria. This study would also benefit students, researchers and scholars who are interested in developing a further study on the subject matter. 1.7  SCOPE OF THE STUDY

This study is restricted to accounting information processing and succession in Nigeria using selected firms in Lagos state as case study. 1.8  LIMITATION OF THE STUDY 

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview). 

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.