EFFECT OF DIGITAL LEDGER ON FINANCIAL REPORTING TRANSPARENCY OF LISTED TELECOMMUNICATIONS COMPANIES IN NIGERIA

Abstract

The need for real-time tracking and auditing became increasingly critical as the telecommunication industry expanded and customer bases grew. By adopting digital ledgers, telecom companies in Nigeria strive to enhance data integrity and streamline financial reporting processes, and comply with stringent regulatory requirements. This called for research on digital ledger has affected financial reporting transparency of listed telecommunications companies in Nigeria. To this end, the current study adopted an ex post facto research design to examine majorly the effect of digital ledger on financial reporting transparency of listed telecommunications companies in Nigeria. The sample of the study consist of 4 listed telecom companies which were purposively sampled from a population of 8 listed ICT companies on the Nigerian Exchange Group as at June, 2024. Data was collected from the financial statement of the sampled companies over a 7 years period (2017 to 2023). The study used descriptive statistics and the multiple regression in analyzing the data. For the first hypothesis tested, the study found that digital ledger adoption has a positive and significant effect on financial reporting transparency of listed telecommunication companies in Nigeria. The second and third hypotheses tested found that digital ledger investment and regulatory compliance have insignificant effects on financial reporting transparency of listed telecommunication companies in Nigeria. The study recommends that policymakers should incentivize the adoption of digital ledger technology (DLT) across the telecommunication industry. This can be achieved by offering tax breaks, grants, or subsidies for investments in DLT infrastructure. Additionally, establishing clear regulatory frameworks and industry standards for DLT usage can ensure consistency and reliability. Training programs and workshops should be developed to enhance the technical expertise of accounting professionals in DLT. By fostering a supportive environment, the government can enhance transparency, reduce fraud, and improve investor confidence in the telecom sector.