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Effect Of Cloud Accounting On The Financial Performance Of Deposit Money Banks (Dmbs) In Nigeria
- * Corresponding Author
- OGUNMAKIN, A. A EKITI STATE UNIVERSITY
- AKINLEYE, M. J. * EKITI STATE UNIVERSITY
- OLOMOLA F. O. COLLEGE OF HEALTH SCIENCES, IJERO EKITI
- BOLADE A. F. ADEKUNLS AJASIN UNIVERSITY, ONDO STATE
- Received June 2025, 1st Revision July 2025, Accepted August 2025, Published online: October 2025
Abstract
This study investigated the effect of cloud accounting on the financial performance of Deposit Money Banks (DMBs) in Nigeria. The dependent variables representing the financial performance of the banks were Return on Equity (ROE) and Net Profit Margin (NPM). The independent variables measuring the cost of cloud accounting were Cost of Service Maintenance (CSM), and Cyber Security Cost (CSC). The study explored the contribution and relationship between these dependent and independent variables by employing an ex-post facto research approach. Ten years of data (2013-2022) from ten selected banks, First Bank Nigeria Holding Plc, Union Bank Plc, Fidelity Bank Plc, Guaranty Trust Bank Plc (GTCO), Wema Bank Plc, Sterling Bank Plc, Zenith Bank Plc, Ecobank Nigeria Plc, Jaiz Bank, Unity Bank Plc, Access Holding Plc, Stanbic IBTC, FCMB Plc, and UBA Plc, were analyzed. The data were subjected to unit root and Hausman tests to ensure stationarity and to identify the best model for panel regression analysis. The data were confirmed to be stationary at level, and the random effect model was determined to be the best fit for regression. The validated data underwent regression and correlation analysis, which established that only CSC influences the NPM of banks positively. It was recommended that DMBs in Nigeria should ensure that their employees are of high level of computer literacy proficiency. While they make efforts to improve the attitudes of both staff and customers towards e-accounting and online banking. It was as well recommended that DMBs should urgently introduce measures to reduce analogue and paper-based activities.
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KEYWORDS: Cloud Accounting, Financial Performance, Deposit Money Banks, Cost of Maintenance, Cyber Security Cost, Return on Equity, Net Profit Margin