European Journal of Accounting, Finance and Investment

IMPACT OF AI-STRUCTURED INVESTMENT ON DEPOSIT MONEY BANKS FINANCIAL PERFORMANCE OF IN NIGERIA

Joseph Eginiwin — 2026-03-27

Abstract

The adoption of Artificial Intelligence (AI) in the financial industry has significantly influenced the investment behavior and efficiency of banking institutions. This research work empirically examines the impacts of AI-structured investment on the financial performance of Deposit Money Banks in Nigeria. The research work adopted the ex-post facto research design, and the data collected from the annual financial statements of the selected DMBs used for the study covers the period from 2015 to 2024. Software book value, software expenses, and AI-driven customer interface chatbots were used as proxies for AI-structured investment, while return on equity was used to measure financial performance in the study. The findings of the study revealed that both software book value and the AI-driven customer interface chatbot have a significant positive relationship with return on equity. The study also revealed that software expenses have a significant negative relationship with return on equity. The researcher concludes that the AI-investment structured investment significantly influences the financial performance of deposit money banks in Nigeria.

FORENSIC AUDITING AND HOLISTIC INTERNALCONTROL MECHANISM: A TACTICAL STRATEGY FOR ENHANCING ORGANIZATIONS PERFORMANCE

Peter-Mario Efesiri EFENYUMI — 2026-03-27

Financial and economic fraud has become more widespread in recent years, with perpetrators continuously evolving their techniques to exploit new vulnerabilities and the rising incidence of financial irregularities and corporate fraud has intensified the need for robust forensic auditing to enhance transparency, strengthen internal controls, and safeguard firm profitability. This study aspires to objectively explore the relationship between forensic auditing practices (fraud detection rate), holistic internal control mechanism and organisation performance (firm profitability for years 2015 - 2024. Employing ex-post facto research design, extracted data were analysed for descriptive statistics; the robust regression technique hypothesis testing and the findings showed that individually, fraud detection rate, and firm size exert significant positive influence on efforts directed at enhancing tactical strategy for organizations performance while increasingly combining too many internal control mechanisms without quality assurance in focus dampens tactical strategy for organizations performance. Fraud detection rate, holistic internal control mechanism and firm size jointly exert significant influence on efforts directed at enhancing tactical strategy for organizations performance: NPM (F-stat = 17.85; p-value = 0.0000) and ROA (F-stat = 6.75; p-value = 0.0004). It was therefore concludes that fraud detection rate, holistic internal control mechanism and firm size exert significant influence on efforts directed at enhancing tactical strategy for organizations performance. The study therefore recommends that organisations and her management should foster a culture of integrity as policy that can drive a layered, holistic control framework embedded in data-driven technology with continuous training for employee and all stakeholders

FORENSIC ACCOUNTING PRACTICES AND PROFITABILITY IN THE BANKING SECTOR IN RIVERS STATE, NIGERIA

Oroma King WOFURU-NYENKE — 2026-03-27

This study examined the effect of forensic accounting practices on the profitability of banks in Rivers State, Nigeria. The research specifically focused on two dimensions of forensic accounting, fraud detection and investigation, internal control and risk assessment, while profitability was measured using Return on Assets (ROA) and Net Profit Margin (NPM). The study adopted a descriptive and explanatory research design, targeting employees and management staff of commercial banks in Rivers State. A sample of 410 respondents was selected using stratified random sampling, and data were collected through structured questionnaires and secondary financial reports. Descriptive statistics, correlation analysis, and multiple regression analysis were used to analyze the data. The findings revealed that banks in Rivers State have implemented robust forensic accounting practices, with employees acknowledging regular fraud detection, investigations, and strong internal control systems. Regression results showed a positive and significant effect of forensic accounting practices on profitability (R² = 0.659, F = 123.45, p < 0.001). Specifically, fraud detection & investigation (B = 0.42, p < 0.001) and internal control & risk assessment (B = 0.38, p < 0.001) were significant predictors of bank profitability, with fraud detection showing a slightly stronger influence. The study concludes that forensic accounting practices are critical for enhancing bank profitability, reducing financial losses, and ensuring operational efficiency. It recommends that banks invest in advanced fraud detection technologies, continuous staff training, effective internal controls, and risk assessment frameworks, while regulators should encourage and enforce the integration of forensic accounting into banking operations.

IPSAS COMPLIANCE AND FINANCIAL REPORTING QUALITY OF MINISTRIES, DEPARTMENTS AND AGENCIES IN RIVERS STATE

Nwobuisi Chukwumeka CHIKWE-TASIE — 2026-03-27

This study examines the effect of International Public Sector Accounting Standards (IPSAS) compliance on financial reporting quality in Ministries, Departments and Agencies (MDAs) in Rivers State, Nigeria, with particular emphasis on faithful representation. A survey research design was adopted, focusing on a population of 310 accounting and finance personnel across all MDAs in Rivers State. Using a stratified random sampling technique, a sample of 65 respondents was selected to ensure proportional representation and reduce sampling bias. Data were collected through a structured questionnaire designed on a five-point Likert scale. IPSAS compliance was operationalized using three proxies: IPSAS Compliance Index, Disclosure Adequacy Ratio, and Number of IPSAS Departures Reported, while financial reporting quality was measured using attributes of faithful representation. Data analysis involved descriptive statistics to summarize respondents’ perceptions and multiple regression analysis to examine the effect of IPSAS compliance on financial reporting quality. The regression results indicate that the IPSAS Compliance Index has a positive and statistically significant effect on faithful representation, suggesting that improved compliance with IPSAS recognition, measurement, and presentation requirements enhances the reliability and completeness of public sector financial reports. Similarly, the Disclosure Adequacy Ratio exhibits a positive and significant relationship with faithful representation, underscoring the importance of adequate disclosures in improving transparency and credibility of financial information. Conversely, the Number of IPSAS Departures Reported shows a negative but statistically insignificant effect, reflecting the persistence of partial IPSAS implementation and continued reliance on cash-basis accounting among Rivers State MDAs. Overall, the model explains a substantial proportion of the variation in faithful representation, confirming that IPSAS compliance is a key determinant of financial reporting quality in the public sector, although its effectiveness is constrained by inconsistent application across MDAs. The study concludes that full and consistent IPSAS implementation is essential for strengthening accountability and decision-usefulness of public sector financial reports.

SUSTAINABILITY REPORTING AND FIRMS ECONOMIC PERFORMANCE IN NIGERIA

EFENYUMI Peter-Mario Efesiri — 2026-03-27

Sustainability reporting has become a pivotal tool for firms in industries and firms have faced significant scrutiny due to their environmental impact, necessitating the integration of environmental, social and governance considerations into financial decision-making. The goal of this study is to examine the influence of sustainability reporting on the economic performance of firms in Nigeria. Using the ex-post facto research design, data were extracted form 48 selected firms for 10 years and were analysed. The findings showed that sustainability reporting framework adoption has a slight negative and insignificant influence on return on assets, but insignificant positive influence on return on equity and net profit margin while sustainability reporting exercised statistically insignificant negative influence on return on assets, return on equity and net profit margin and the study concluded that sustainability reporting has not been significantly integrated into the annual financial reporting framework of most of the firms and that sustainability reporting does not significantly influence, return on assets (ROA), return on equity (ROE) and net profit margin (NPM) performance of firms in Nigeria. Upon this, study therefore recommends that despite the mixed regression results, the positive correlations suggest that sustainability reporting may still offer reputational and long-term financial benefits and that firms should improve sustainability reporting to meet stakeholders expectations and potentially gain market advantages and that clearer guidelines on sustainability reporting and disclosure could improve comparability and reliability thus helping investors and analysts better assess sustainability performances.

IMPACT OF PRODUCT COST MANAGEMENT ON PROFITABILITY OF CONSUMER GOODS FIRMS IN NIGERIA

Clinton Chika AARON — 2026-03-27

This study investigates the effect of product cost management on the profitability of consumer goods firms in Nigeria, focusing on material cost control and labour cost management as key dimensions of cost management. Profitability was measured using gross profit margin and net profit margin. The study employed a descriptive and explanatory research design, utilizing secondary data extracted from the audited financial statements of ten consumer goods firms listed on the Nigerian Stock Exchange over a five-year period (2018–2022). Data were analysed using descriptive statistics and multiple linear regression to examine the relationship between product cost management and profitability. The findings reveal that both material cost control and labour cost management positively and significantly influence gross and net profit margins. Material cost control was found to have a stronger effect, highlighting the sensitivity of profitability to fluctuations in raw material costs. The study further showed that product cost management jointly explains 71.4% of the variation in gross profit margin and 62.3% of the variation in net profit margin, indicating that effective cost control practices are critical determinants of financial performance in Nigerian consumer goods firms. Based on the results, the study concludes that efficient product cost management enhances firm profitability and recommends that firms adopt integrated cost control systems, invest in workforce efficiency, and implement modern inventory and production management practices.