Effects of Digital Accounting on Financial Reporting and Accountability of Manufacturing Firms in Nigeria

Abstract

The digital capability of a business is fundamental to the competitiveness in today’s market. It is rapidly changing and evolving, which in turn increases competition and the need for companies to innovate quickly. This study therefore examines the effects of digital accounting on financial reporting and accountability of manufacturing firms in Nigeria. A total of ten (10) listed firms in Nigeria were selected as the sample for the study. Structural equation model and multiple regression analysis were applied to test the research relationships. The results of the study show that financial reporting and accountability are significantly related to digital accountings in manufacturing firms in Nigeria. Hence, there is effectiveness of digital accounting on financial reporting and accountability of manufacturing firms in Nigeria.It was therefore recommended that the executives of the firms should invest, apply and utilize digital accounting as a valuable tool in business operations through allocating assets, resources, and capabilities to achieve the success of digital technology usage.Digital accounting should be encouraged at the various stages of financial reporting as this will also have impact on the level of companies’ accountability in Nigeria.

Keywords: Accountability, Financial Reporting, Digitalization, Digital Accounting, Manufacturing Firms

DOI: 10.7176/EJBM/15-12-06

Publication date:June 30^th 2023