EFFECT OF ACCOUNTING INFORMATION SYSTEM (AIS) COSTS ON THE FINANCIAL REPORTING QUALITY OF SELECTED NIGERIAN DEPOSIT MONEY BANKS

The Accounting Information System (AIS) plays a crucial role in ensuring the accuracy, timeliness, and reliability of financial reporting in organizations. However, the high costs associated with AIS implementation and management has raised concerns about how these costs are influenced by various internal and external factors. This study therefore is an attempt to examine the effect of AIS cost and financial reporting quality of selected Nigerian Deposit Money Banks. The study adopts ex-post factor research design whereby data was sourced mainly from the audited annual financial reports of listed consumer goods manufacturing firm on the floor of Nigerian Exchange Group for the period 2015-2024. The population of the study consists of fourteen (14) NDMBs as at December, 2024. The sample size of seven (7) NDMBs was arrived at using purposive sampling technique whereby NDMBs which have their annual report and accounts readily accessible for the study period were selected. Analytical techniques used in the study consist of both descriptive and inferential statistics while inferential statistics such as panel regression analysis was used to determine the extent to which AIS costs influence financial reporting quality of selected NDMBs. Findings from the result of panel regression analysis on the extent to which AIS costs influence financial reporting quality of selected NDMBs showed that two (2) out of the four (4) explanatory variables were significant in explain the variation of financial reporting quality of selected NDMBs. These variables are Operational Cost (p=0.0000) and Software Acquisition Cost (p=0.0300). The study concluded that there is a positive relationship between of AIS cost and financial reporting quality of selected Nigerian Deposit Money Banks. It is therefore concluded that Banks should adopt standardized cost control frameworks that clearly identify and manage the drivers of AIS costs—such as operating overheads, human capital, software licensing, and R&D expenditures.