Firms implementing ERP systems can choose to install some or all of the modules
(e.g., financial accounting, human resources) offered by their ERP system vendor. They
also rarely select different modules from different ERP vendors (Sumner 2005). Therefore,
accounting cycles (e.g., sales and collection cycle) not covered by an ERP module adoption
are likely to be accounted for by a noncompatible legacy system, providing less manager
access to/control over accounting information and a less efficient cycle close. Mabert et al.
(2000) find that the most popular module implemented by U.S. firms is the financial accounting
module. In studies evaluating the effects of ERP system module adoptions, both
Hitt et al. (2002) and Nicolaou (2004) find stronger post-implementation performance for
firms implementing more modules of the systems. Similarly, the extent of ERP implementation
may augment the aforementioned effects of ERP implementations on the management
of earnings and release dates.