EFFECTS OF INFORMATION AND COMMUNICATION TECHNOLOGY QUALITY ON FINANCIAL REPORTING QUALITY OF SELECTED TERTIARY INSTITUTIONS IN OYO STATE

Abstract

The world has moved from manual recording with Information Communication Technology (ICT) being impactful in all works of life, financial reporting, and its quality (FRQ) being inclusive. So far there is restricted review zeroing in on ICT and FRQ in tertiary foundations in emerging nations, most particularly in Nigeria. The main objective of this study is to examine the relationship between ICT and FRQ of chosen Tertiary Institutions in Oyo state. The span of this study is from 2010 to 2018 with four (4) of the Tertiary Institutions in the study area purposively selected as the sampled population. Inferential statistical tools, such as correlation was employed using primary data. The study found that there is a significant relationship between ICT and FRQ of selected Tertiary Institutions in Oyo State given the correlation coefficient between ICT variables; ICT maintenance cost, cost of IT training, and purchasing cost of IT equipment were found to be positive, and significantly related to financial report quality at 0.7733; 0.5957; 0.7552 respectively, showing a direct relationship between the variables while the level of allowed error was 0.05 level of significance. The study based on its findings concluded that there is a strong significant relationship between ICT and FRQ of selected tertiary institutions in Oyo state. It was recommended that the Tertiary institutions in Oyo state should continue to deploy ICT as a strategic tool for improved financial reporting quality. Also, for financial reporting to be relevant, timely, and understandable, tertiary institutions should invest more in IT devices, training of staff, and proper maintenance of IT equipment.