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The Impact of Cloud Accounting on the Financial Performance of Deposit Money Banks in Nigeria

Adeoye, M.A., Adeyemo, O.A., Oluyori, J. O., Efuntoye, Y.?.

Abstract

Nigerian banking industry has in recent times been reportedly facing different degrees of financial issues which give rise to widespread fraud in the financial sector. This serves as a pointer to the relevance of cloud accounting practices in achieving global quality in financial performance. Cloud accounting practice is a technology-based method which combines accounting principles as well as the concept of an information system to record, process, analyze and produce financial information about a business to end users. Studies in this regard, focusing on Nigeria Money Deposit Banks (NDMBs) were few and require further empirical investigation. This study, therefore, evaluated the impact of cloud accounting practices on financial performance and quality of risk management of selected banks in the different six geo-political regions in Nigeria using the regional headquarter cities along with the Federal Capital territories (Lagos and Abuja). Primary data were collected using questionnaire and secondary data covering a period of 2020-2024 were collected from the annual report of the selected banks. Six deposit money banks in Nigeria were selected using homogeneous purposive sampling. Questionnaires were administered randomly through Google Form on the selected staff of the banks in the selected cities out of which two hundred and fifty were returned and used for the study. Data collected were analysed using descriptive statistics like table and percentage with inferential statistics such as pooled regression analysis at 95% confidence level. The results showed that Financial Stability and Low Risk (FSLR), Timeliness of Generating Financial Reports (TFR), and Compliance with Regulatory Standards and Audit (CRSA) exhibited weak and mixed correlations with Security of Financial Data (SFD). However, the regression analysis revealed that FSLR $(eta=0.7329,$ $p<$ 0.001) and TFR $(eta=0.1500$, $p=0.021)$ had significant positive effects on SFD, while CRSA $(eta=$ 0.0692,

Keywords

Cloud AccountingFinancial PerformanceDeposit Money BanksNigeriaSecurity of Financial Data

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