Computerised Accounting System: A Catalyst for Improved Operating Performance of Listed Industrial Goods Firms in Nigeria

Abstract

The study examined computerised accounting system as a catalyst for improved operating performance of listed industrial goods firms in Nigeria. The specific objective was to examine the extent to which computerised accounting system intensity (CASI) affects the operating expenses of listed industrial goods firms. The study adopted ex-post facto research design on a population of thirteen listed industrial goods firms in Nigeria. However, purposive sampling was applied in choosing the sample size on the basis of availability of annual reports from 2012 to 2021. Secondary data were gleaned from the annual reports of the sampled firms over a period of ten years which spanned from 2012 to 2021. The Ordinary Least Square regression analysis was used in estimating the regression estimates for the purpose of hypothesis testing. It was found that the use of CASI significantly reduces operating expenses for listed industrial goods firms (p-value = 0.0057). The study concludes that CASI brings about significant cost savings for listed industrial goods firms through a combination of process automation, improved supply chain efficiency, and data-driven decision-making. The researchers recommend that industrial goods firms that have already implemented CASI should evaluate the effectiveness of their existing systems by determining if their current systems are optimized for maximum efficiency, or if they can be improved to further reduce operating expenses