DIGITALIZED ACCOUNTING SYSTEM AND STAKEHOLDER’S FINANCIAL SECURITY EXPERIENCE FROM DEPOSIT MONEY BANKS IN NIGERIA

This study investigated the impact of digitalized accounting systems on stakeholders' financial security in Nigerian deposit money banks (DMBs), focusing on three key aspects of digital accounting systems: System Quality (SQ), Information Processing Capability (IPC), and Security Controls (SC). The study employed a survey research design, utilizing a structured questionnaire administered to 118 banking professionals selected through judgmental sampling from a population of 167 staff members across 21 DMBs in Abeokuta, Ogun State. Responses were collected using a 5-point Likert scale and analyzed using descriptive statistics, correlation analysis, and multiple regression. The findings revealed that digitalized accounting systems significantly influence stakeholders' financial security, with varying impacts across different dimensions. System Quality emerged as the strongest predictor of Financial Data Protection (β = 0.586, p < 0.001) and Information Reliability (β = 0.400, p < 0.001), while Security Controls significantly influenced Transaction Security (β = 0.206, p = 0.003). The models explained 42.1%, 14.9%, and 29.3% of the variance in Financial Data Protection, Transaction Security, and Information Reliability, respectively. The study concluded that while digital accounting systems are crucial for stakeholder financial security, their effectiveness varies across different security dimensions, necessitating a balanced implementation approach. Recommendations include enhanced investment in system quality, strengthened security infrastructure, comprehensive staff training, and improved stakeholder engagement. The research contributes significantly to stakeholder theory by demonstrating how digital systems can simultaneously serve multiple stakeholder interests while providing empirical evidence for policy formulation in the banking sector. It also advances the accounting profession by highlighting critical factors for successful digital system implementation and management. These findings provide valuable insights for banking regulators, bank management, and stakeholders in understanding how different aspects of digitalized accounting systems contribute to financial security, guiding future investments and policy decisions in Nigeria's banking sector. The study's comprehensive approach to examining the relationship between digital accounting systems and stakeholder financial security adds to the growing body of knowledge in this field while offering practical implications for the banking industry.