Relevance of Cloud Based Accounting System on Financial Performance: Evidence from Tier One Banks in Awka Metropolis

Abstract

The rapid evolution of technology is fundamentally shaping the global corporate landscape. How the Nigerian environment has embraced this digital evolvement remains a significant research gap. This study therefore seeks to determine the impact of the cloud based accounting system on the financial performance of tier 1 banks located in Awka metropolis in Nigeria. The research relied on the descriptive survey research design, utilizing primary data sourced from respondents via structured questionnaires. A manageable sample size of 67 respondents deemed fit for the study was arrived at through the Yaro Yamani formula as a result of the large population. The research instrument was validated via the Cronbach's Alpha reliability estimate while the eventual responses were tested by means of the ordinary least squares regression model. Key findings indicated a statistically significant and positive influence of the Internet as a Service (IaaS) over the return on capital employed. In contrast, the Platform as a Service (PaaS) revealed an insignificant effect on the ROCE while the Software as a Service (SaaS) demonstrated a statistically significant but weak positive impact on the return on capital employed. The study therefore recommended amongst others that the banks should prioritize strategic investments in internet infrastructures for improved operational efficiency and improved financial performance.