CLOUD ACCOUNTING AND FINANCIAL REPORTING QUALITY OF SELECTED NIGERIAN BANKS
Keywords:
Cloud Accounting, Financial Reporting Quality, BanksAbstract
This study examines the impact of cloud accounting on financial reporting quality using a sample of five (5) banks in Nigeria. Cloud Software as a Service (SAAS), Cloud Infrastructure as a Service (IAAS), Cloud Platform as a Service (PAAS), and Cloud Network as a Service (NAAS) are utilised as cloud accounting proxies in order to evaluate their impact on the quality of financial reporting. The measurement of financial reporting quality (FRQT) is based on the qualitative qualities of financial reports as stipulated by the International Accounting Standards Board (IASB). The study's population comprises 450 respondents who were picked from the five banks located in Port Harcourt. Nevertheless, it is important to note that the study's sample size included 212 participants who were selected from the five banks located in Port Harcourt. The examination of the questionnaire administered and obtained from the respondents involves the utilisation of mathematical and statistical tools. To investigate the causal links between the dependent and independent variables, as well as to verify the specified hypotheses, this study employed robust regression analysis due to the identification of heteroskedasticity in the results. The findings derived from the robust ordinary least squares (OLS) regression analysis indicate that the variable representing cloud software as a service exhibits a statistically positive but insignificant impact on financial reporting quality. Conversely, cloud infrastructure as a service demonstrates a statistically positive and significant influence on financial reporting quality. Furthermore, cloud platform as a service, when considered as an independent variable in relation to financial reporting quality, exhibits a statistically positive and significant effect. However, when cloud platform as a service is regarded as an independent variable in relation to financial reporting quality, it demonstrates a statistically negative and significant impact on the financial reporting quality of the selected banks in the study. The research findings indicate that the adoption of cloud Infrastructure as a Service (IaaS) and cloud Platform as a Service (PaaS) has a substantial positive impact on the financial reporting quality of the chosen banks in Nigeria during the specified timeframe. Nevertheless, the research findings also indicate that the implementation of cloud Network as a Service (NaaS) had a notable negative impact on the financial reporting quality of the chosen banks in Nigeria during the examined timeframe. The study proposes the adoption and implementation of cloud accounting systems in banks as a means to improve the promptness of their financial reports when required.