CLOUD ACCOUNTING COST AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA
Main Article Content
Abstract
The research delved into the intriguing relationship between the financial performance of Nigerian manufacturing enterprises and the costs associated with cloud accounting. Employing an ex post facto research approach and utilizing panel data analyses of public financial statements and accounts of manufacturing firms traded on the Nigerian Stock Exchange over a substantial nine-year period (2009-2018), the study randomly selected six manufacturing companies to participate. The investigation employed the sophisticated Random Effects regression technique to analyse the data. The research findings were striking, revealing a significant negative influence of maintenance costs on the return on equity of the chosen manufacturing enterprises in Nigeria. The research observed that even a mere 1% increase in maintenance costs would lead to a noteworthy 0.06% decrease in return on equity. These findings emphasized the critical link between cloud accounting costs and organizational performance in the manufacturing sector. The research further underscored that the costs associated with cloud accounting could pose obstacles to the performance of manufacturing companies. As a result, the study concluded that a successful cost management system is imperative for manufacturing businesses to achieve sustained profitability, highlighting the need for prudent financial strategies in the face of evolving technological advancements in the accounting domain.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Bamaiah. B. (2012) User acceptance of computer technology: a comparison of two theoretical models. Management science (pp 120 – 122 ), London: McGraw-Hill Education.
Bogdan, I. Iuliana, I. Andreea B. & Laura, T. (2013).traditional accounting vs.cloud accounting. ConferencePaper, Retrived on 11th 0ctober,2016 from https://www.researchgate.net/publication/267751382
Cleary, P. & Quinn, M. 2016, "Intellectual capital and business performance", Journal of Intellectual Capital, vol. 17, no. 2, pp. 255-278
Du, H. and Cong, Yu. (2010), “Cloud Computing, Accounting, Auditing, and Beyond”, The CPA Journal, October, pp. 66-70.
Effiong, S. A., and Beredugo, S. B. (2015). Balanced scorecard and strategic cost management: recipes for productivity rating of Nigerian manufacturing companies. Open Journal of Finance, 2(1), 2 – 12
Gill, R. (2011), “Why Cloud Computing Matters to Finance”, Strategic Finance, January, pp. 43-47.
Hui, K.W., Klasa, S. and Yeung,P.E.(2012). Corporate suppliers and customers and accounting conservatism. Journal of Accounting and Economics, 53, 115-35
Institute for Information Industry (2012). The current status of cloud computing investment in Taiwan.(Retrieved on 14th October 2017).
Jones, T.M., Harrison, J.S. & Felps, W. 2018, "How Applying Instrumental Stakeholder Theory Can Provide Sustainable Competitive Advantage", Academy of Management Review, vol. 43, no. 3, pp. 371-391.
Kourk. D. (2011). An ultimate guide to writing a dissertation in business studies: a step by step assistance. Retrieved July 11, 2019, from http://researchmethodology.net/researchphilosophy/interpretivism/
Lian, J.-W., Yen, D.C., and Wang, Y.-T. (2014). An exploratory study to understand the critical factors affecting the decision to adopt cloud computing in Taiwan hospital,International Journal of Information Management, 34(2), 28-36.
Lymer, A, Baldwin, A. (2012). Intelligent internet agents for business management and accounting. CIMA Research Executive Summary Series (Retrieved on 14th October 2017)
Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J. and Ghalsasi, A. (2011), “Cloud computing - the business perspective”, Decision Support Systems, Vol. 51, No. 1, pp. 176–189.
Mongan, K. (2011), “Cloud Computing – The Storm Is Coming”, Accountancy Ireland, Vol. 43, No. 3, pp. 58-59.
NIST (2011), “The NIST definition of cloud computing”, Special Publication 800-145, National Institute of Standards and Technology, Maryland, USA, available at: http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf (accessed 9 September 2014).
Nnadozie C. (2013), “Cloud Computing in Nigeria.” Department of Computer Science, Faculty of Physical Sciences, University of Nigeria Nsukka. Available at: https://www.researchgate.net/deref/http%3A%2F%2Fwww.unn.edu.ng%2Fpublications%2Ffiles%2FNnadozie.%2520Chapman%2 520Eze.pdf
Nzoya. C. (2018). Initiation adoption and implementation of innovation: effects of context, organization and Leaders. (pp 120 – 122). London: Kodansha.
Onyali, I. (2015). Cloud Computing and Accounting: A Paradigm For Improved Corporate Performance
Pandey, I. M. (2005). Financial management. 9th edition. India; vikas Irish Publication.
Paul, F. (2010), “Why cloud computing matters to small biz”, Forbes, available at: http://www.forbes.com/2010/01/21/cloud-computing-3tera-entrepreneurs-technology-informationweek.html (accessed 22 October 2014).
Rogers, E.M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.
Salim, Al-Isma'ili (2016). International Journal of Web and Grid Services, 12 (3); 296 – 327
Schumpeter, J.A. (1934). The theory of Economic Development: An Inquiry into Profits, Capital, Credits, Interest, and the Business Cycle. Transaction Publishers, Piscataway.
SLASSCOM (2013) Finance and Accounting Outsourcing Sector of Sri Lanka, Colombo 10: SLASSCOM
Sultan, N.A., (2013). Cloud computing: a democratizing force? International Journal of Information Management, 5(33), 810-815.
Young, R. (2010), “Cloud computing could lead to more adaptive finance function”, Insight, Chartered Institute of Management Accountants, December, available at: http://www.cimaglobal.com/Thought-leadership/Newsletters/Insight-e-magazine/Insight-2010/Insight-December-2010/Cloud-computing-could-lead-to-more-adaptive-finance-function/ (accessed 22 October 2014).
Zhang X, Ping Y, Yan J. Patients' adoption of the e-appointment scheduling service. Investing in E-Health: People, Knowledge and Technology for a Healthy Future. 2014; 204:176–81.