Management Accounting Practices and Internet Financial Reporting of Listed Manufacturing Companies in Nigeria.

Abstract

The study explores the effect of management accounting practices on internet financial reporting of listed manufacturing companies on the Nigeria stock exchange (NSE). It employed the descriptive research design using panel data set from the financial reports for a 10 years period between 2010 to 2019, of the sampled companies. The population of the study is the whole listed manufacturing companies that have website address which cut across health manufacturing, consumer goods manufacturing, industrial goods manufacturing and conglomerates companies, numbering 65 companies, the sample size for this study is 42 companies that have active website address, and is derived using the purposive sampling technique. The trusted search engines used to source for data for this study includes; www.google.com, www.proshare.com, africanfinancials.com, to establish the real website of the sample companies. The multiple linear regression method and the ordinary least squares models were used to analyze data collected. The study adopted the Internet Disclosure Index as proxy for dependent variable, while the independent variables were cost of resources supplied, economic value added and modified cost volume profit. The result of the study showed that a positive significant relationship exists between cost of resources supplied and internet financial reporting disclosures, that economic value addition showed a negative significant relationship with internet financial reporting disclosures, a positive insignificant relationship exists between modified cost volume profit and internet financial reporting disclosures each in the sampled companies. It is therefore, recommended based on these findings that Companies in this sector should endeavor to manage their cost of owning a website so as to maintain the benefit of internet financial reporting, the value additions in respect to using internet financial reporting must be adequately analyzed so that the purpose of using it will not be defeated, and that a well-planned cost-volume-profit analysis be carried out to ensure that the huge bill involved with financial reporting is defrayed within the companies’ margin of safety.