Saudi Journal of Economics and Finance (SJEF)
Volume-10 | Issue-03 | 102-117
Original Research Article
Information Technology Dynamics and Financial Reporting Quality of Listed Family-Owned Companies in Nigeria
Olubunmi Modupe odugbemi
Published : March 30, 2026
Abstract
Despite the significant contribution of family-owned business to global economy, these firms often struggle with the quality of financial reporting due to unique governance structures, poor management, and a lack of access to modern technology, which poses challenges to transparency and investor confidence. In view of this, the study investigates the effect of information technology dynamics on financial reporting quality of listed family-owned companies in Nigeria. Longitudinal research design was used on data collected from secondary sources of 37 family-owned companies from 2015 to 2024. The robust pooled ordinary least squares regression was conducted tests to verify interaction between financial reporting quality (FRQ) as dependent variable and the proxy of information technology dynamics; cloud computing cost, extensible business reporting language cost, and artificial intelligence cost. Results revealed that cloud computing cost has a significant affirmative effect while artificial intelligence cost has an insignificant positive effect on FRQ of listed family-owned companies in Nigeria. Contrarily, extensible business reporting language cost has an insignificant adverse effect on FRQ of listed family-owned firms in Nigeria. The study concludes that information technology investments significantly improve financial reporting quality of listed family-owned companies in Nigeria. It is therefore recommended that managers should consider prioritizing investments in cloud-based accounting systems as they enhance real-time data capture, facilitate accurate reporting and reduce possibility of human errors thereby boosting transparency and accountability. Furthermore, Regulators and policy makers should create enabling environments that reduce implementation costs and foster technological capacity development.