The Effect of Electronic Accounting System on Financial Performance of Deposit Money Banks in Nigeria

ABSTRACT
The purpose of this research was to interrogate the effect of electronic accounting system on performance of deposit money banks (DMBs) in Nigeria. This study used panel data regression to evaluate four hypotheses on how automated teller machines (ATM) and point of sale (POS) transactions, which were the models of electronic accounting system, affect financial performance of deposit money banks, measured by return on equity and return on capital employed. From a population size of 19 deposit money banks with international and national authorization, 18 DMBs were selected as the sample size, using Taro Yamane formula and convenience sampling technique. Secondary data was gathered from the financial statements of the 18 deposit money banks listed on the international and local markets of the Nigerian Exchange Group (NEG) between 2019 and 2023. The financial performance of Nigerian deposit money banks is strongly affected by their ATM and POS transactions, to a very large extent, with findings indicating that that is a connection between ATM transactions and ROE and ROCE, as well as between POS transactions and ROE and ROCE. The report therefore recommended that, among others, Deposit money banks should be encouraged to improve and expand their transaction processing application areas (which include ATM and POS) so as to further increase their performance.