Effect of Digital Accounting System Adoption on Financial Reporting Quality among Listed Manufacturing Companies in Nigeria

This study examined the effect of digital accounting practices on financial reporting quality of listed manufacturing companies in Nigeria between 2015 and 2025, with Financial Reporting Quality (FRQ) serving as the dependent variable. The specific objective was to assess how Digital Accounting System Adoption (DASA), Accounting Information System Integration (AISI), and Real-Time Financial Data Processing (RTFDP) influence FRQ. Using panel data obtained from five listed manufacturing companies and employing Panel Least Squares regression analysis, the study found that only one of the three digital accounting variables had a statistically significant effect on FRQ. Digital Accounting System Adoption (β = 0.5966, p = 0.0000) exhibited a significant positive effect, suggesting that greater adoption of digital accounting systems is associated with improved financial reporting quality. In contrast, Accounting Information System Integration (β = -0.0949, p = 0.5658) and Real-Time Financial Data Processing (β = 0.2121, p = 0.1570) showed statistically insignificant relationships with FRQ, indicating that these variables did not exert measurable effects on financial reporting quality during the study period. Descriptive statistics revealed moderate levels of digital accounting adoption, accounting information system integration, real-time financial data processing, and financial reporting quality, with some variations across the sampled firms and years. The findings suggest that effective adoption of digital accounting systems is particularly important for enhancing the accuracy, reliability, timeliness, and efficiency of financial reporting, while system integration and real-time processing may require stronger implementation mechanisms to produce significant reporting benefits. It is concluded that listed manufacturing companies should prioritize effective digital accounting system adoption, supported by adequate technological infrastructure, employee training, system security, and appropriate internal controls, to improve financial reporting quality and strengthen the credibility of corporate financial information.