Abstract

<p>This study investigates the effect of Accounting Information Systems (AIS) on the financial performance of listed healthcare firms in Nigeria. Specifically, it examines the influence of accounting software usage, the cost of accounting software, and accounting software investment intensity on Return on Assets (ROA). An ex-post facto research design was adopted, utilizing secondary data extracted from the annual reports of five purposively selected healthcare firms listed on the Nigerian Exchange Group as of December 31, 2023. The selection was based on the availability of consistent financial data covering a ten-year period from 2014 to 2023.</p>
<p>Descriptive statistics were employed to summarize the data, while panel least squares regression with White period standard errors was used to test the study’s hypotheses at a 5% significance level. The results revealed that accounting software usage has a positive but statistically non-significant effect on ROA (β = 0.046449; p = 0.4411). In contrast, the cost of accounting software exhibited a significant positive impact on ROA (β = 0.031437; p = 0.0002), suggesting that financial investment in robust software systems may enhance firm performance. Interestingly, accounting software investment intensity showed a significant negative effect on ROA (β = -0.218236; p = 0.0000), indicating that excessive or misaligned investment in software may undermine profitability.</p>
<p>The findings suggest that while the mere use of accounting software may not guarantee improved financial outcomes, strategic and cost-effective investments in such systems can positively influence firm performance. Conversely, disproportionate or poorly managed investment in AIS could hinder returns. The study concludes that for AIS to yield substantial performance benefits, firms must align software investments with operational needs and provide adequate training for users.</p>
<p>It is recommended that management of listed healthcare firms enhance staff training to improve software utilization and integration into overall business operations. Additionally, firms should undertake cost-benefit analyses to ensure that AIS investments are economically justified and support sustainable financial performance</p>