A Panel Data Analysis of the Impact of Cloud Accounting on the Performance of Nigerian Consumer Goods Companies: A Fully Modified OLS Approach

AGBEYANGI Babatunde. A.^1, , AKINDE Mukail A.² and OGUNNUSI Oluwatobi. N.³

¹Department of Accountancy, Federal Polytechnic, Ilaro, Nigeria

²Department of Taxation, Federal Polytechnic, Ilaro, Nigeria

³Department of Mathematics and Statistics, Federal Polytechnic, Ilaro, Nigeria

Cite this paper:
AGBEYANGI Babatunde. A., AKINDE Mukail A. and OGUNNUSI Oluwatobi. N.. A Panel Data Analysis of the Impact of Cloud Accounting on the Performance of Nigerian Consumer Goods Companies: A Fully Modified OLS Approach. Journal of Finance and Accounting. 2026; 14(1):1-11. doi: 10.12691/jfa-14-1-1

Abstract

Cloud accounting has emerged as a critical component of digital transformation, enabling firms to improve financial reporting, operational efficiency, and decision-making processes. This study examines the long-run impact of cloud accounting investments on the performance of selected consumer goods companies in Nigeria. Using a quantitative panel data approach, secondary data were obtained from ten listed consumer goods companies over the period 2014–2023. The study employed cost of software and cost of training as proxies for cloud accounting investment, and Return on Assets (ROA) and Return on Equity (ROE) as measures of firm performance. Panel unit root and Pedroni cointegration tests were conducted to establish the statistical properties and long-run relationships among the variables, while Fully Modified Ordinary Least Squares (FMOLS) technique was used for estimation. The findings revealed that software costs exert a positive and significant effect on return on equity, indicating that investments in cloud accounting technology enhance shareholder’s value. Conversely, training costs have a significant negative effect on return on assets and a marginal negative effect on return on equity, thereby suggesting that short-term financial burden of training may outweigh its immediate benefits. The study also confirms the existence of a stable long-run relationship between cloud accounting investments and firm performance. The findings highlight the need for firms to optimize cloud accounting investment decisions to maximize performance outcomes

Keywords:
Cloud Accounting Cointegration Fully Modified Ordinary Least Squares Return on Asset Return on Equity

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