Cloud Accounting Adoption and Financial Reporting of Listed Deposit Money Banks in Nigeria

Abstract

Cloud accounting has been one of those innovations that have caused a revolution in how firms process, store, and access financial information in real time using cloud-based services. The banking industry plays the role of financial intermediation in the emerging economies like Nigeria. The study examines the adoption of cloud accounting impact on the quality of financial reporting by banks. The designed three objectives, research questions and hypothesis to guide the research. The theories employed in the study are technology acceptance model, agency theory and signaling theory. This study used a quasi-experimental design, which compared the pre-adoption and post-adoption stages of cloud-based accounting. The sample comprising of the total number of 13 banks on the Nigerian Exchange (NGX) as of 2023. Since the population is small, a purposive sampling method was chosen and all the listed banks incorporated into the study. The data were collected using a secondary data extracted from annual reports, CBN prudential guidelines, and NGX filings of 2014 to 2023. The result findings shows that cloud systems can maximize the reliability of reporting because it reduces managerial discretion in earnings management. The study concluded that the adoption of clouds improves the credibility of reporting, yet the success will require the use of adequate implementation and supervision. It was recommended that Firms should promote adoption of cloud accounting nationwide by Sectors.