IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 11 2024
DOI: 10.56201/ijebm.v10.no11.2024.pg241.249

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Electronic Accounting System and Financial Performance of Deposit Money Banks in Nigeria

Abah-Marcus, Olaladiza Princess PhD

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Abstract

This study investigated the relationship between electronic accounting systems and financial performance in Nigerian deposit money banks. In other to achieve this purpose, theory was formulated and examinations of correlated collected works were researched upon. Ex-post facto research design method was used. The studied data upon which the research is formulated is the secondary data on electronic accounting systems and financial performance wherein data was collected by means of Financial Statements of deposit money banks listed in the Nigeria Stock Exchange. The researched data were studied by means of inferential and descriptive statistical tools with the support of statistical package for social sciences version 23. The secondary data collected from 5 major listed deposit money banks on Nigerian stock market from 2018 to 2023 were analyzed using multiple OLS regression technique. The first findings revealed that Automated Teller Machine (ATM) had a positive and significant effect on Return on Capital Employed (ROCE) of deposit money banks in Nigeria, while the final finding revealed that Point of Sale (POS) had a positive and significant effect on Return on Capital Employed (ROCE) of deposit money banks in Nigeria. Thus, the study recommends that deposit money banks in Nigeria should prioritize the expansion and modernization of their ATM networks. This includes deploying more ATMs in strategic locations, ensuring regular maintenance, and incorporating advanced features like cash deposits and cardless transactions to enhance customer convenience and increase transaction volumes, thereby boosting overall returns on capital. The study also recommends that banks should focus on expanding their POS networks by providing incentives to merchants for POS adoption.

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