CLOUD-BASED ACCOUNTING SYSTEMS AND FINANCIAL REPORTING QUALITY IN NIGERIAN DEPOSIT MONEY BANKS: THE MODERATING ROLE OF REGULATORY COMPLIANCE
Keywords:
Cloud-Based Accounting Systems, Financial Reporting Quality, Decision-Usefulness, Regulatory ComplianceAbstract
This study examined the effect of cloud-based accounting systems (CBAS) on the decision-usefulness and quality of financial reports (FRQ) in Nigerian Deposit Money Banks (DMBs), with a focus on the moderating role of regulatory compliance. Specifically, it assessed how CBAS dimensions, integration and scalability, cost-effectiveness, user-friendliness, and security & compliance, influence the relevance, clarity, reliability, and timeliness of financial reports. A survey design targeted 400 professionals involved in financial reporting in licensed Nigerian DMBs, using a structured questionnaire on a five-point Likert scale. Data were analyzed using multiple and moderated regression analyses. Measurement reliability and validity were confirmed through Cronbach’s alpha and factor analysis, and diagnostic tests indicated no serious issues with multicollinearity or model misspecification. Results showed that CBAS positively impacts financial reporting quality and decision-usefulness, with integration and scalability being the strongest contributors, while regulatory compliance was found to moderate the relationship. These findings highlight that while CBAS can significantly enhance financial reporting, overly stringent regulatory oversight may limit their effectiveness. The study recommends strategic investment in scalable and integrative CBAS, capacity building for financial staff, and adaptive regulatory frameworks to optimize digital reporting benefits.
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