ACCOUNTING SOFTWARE DEPLOYMENT AND CORPORATE PROFITABILITY IN MODERN ERA: EVIDENCE FROM LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Abstract

Abstract: The study examined the effect of accounting software deployment on corporate profitability among listed industrial goods firms in Nigeria. Accounting software deployment was measured using intensity of accounting software while earnings per share served as the proxy for corporate profitability. The study adopted an ex-post facto research design to analyze historical financial data from the selected firms. The population consisted of all twelve industrial goods firms listed on the Nigerian Exchange Group as of December 31, 2024, from which nine firms were purposively sampled based on data availability. Secondary data were collected from the firms’ audited annual reports covering the period 2015 to 2024. The hypothesis was tested using panel estimated Generalized Least Squares regression to account for cross-sectional dependence in the data. The finding revealed that intensity of accounting software deployment has a positive and significant effect on earnings per share (β = 7.846, p = 0.0065). In conclusion, firms that integrate and utilize accounting software more intensively are able to streamline financial processes, reduce errors, and provide more timely and accurate information for decision-making, which translates into improved profitability reflected in higher earnings per share. The study recommended that the management of listed industrial goods firms in Nigeria should more actively invest in and expand the use of advanced accounting software across all financial operations. By doing so, management can ensure more accurate, timely, and efficient financial reporting, which directly contributes to improving profitability.