Leveraging Digital Accounting and Corporate Governance for Financial Sustainability of Firms in Nigeria

Abstract

This study investigated the impact of digital accounting and corporate governance on the financial sustainability of firms in Nigeria. The research used secondary data from the financial statements of 50 listed firms across multiple sectors between 2014 and 2023 and employs a quantitative approach, incorporating descriptive statistics, correlation analysis, and panel regression models. The findings revealed that digital accounting, particularly cloud-based systems, significantly enhances financial transparency and sustainability. Effective corporate governance, especially executive compensation structures aligned with sustainability objectives, strengthens accountability and long-term financial stability. However, the adoption of artificial intelligence (AI) in accounting shows limited direct influence, indicating challenges related to infrastructure, skill gaps, and implementation. The study highlighted the need for firms to integrate digital accounting solutions, reinforce governance frameworks, and link executive incentives with sustainability targets to achieve financial stability. Policymakers should facilitate digital transformation through regulatory incentives and investment in digital infrastructure. Additionally, standardized sustainability reporting frameworks are recommended to enhance transparency and investor confidence. This research contributed to the literature by providing empirical evidence on the role of digital accounting and governance in financial sustainability within the Nigerian context. The research explored the necessity of integrating emerging financial technologies with governance reforms to promote long-term economic growth. The study concluded that fostering a robust digital accounting environment and strengthening governance practices are critical for enhancing corporate sustainability and financial resilience in Nigeria.