Artificial Intelligence, Big Data Analytics, and Financial Reporting Quality in Nigeria: The Mediating Role of Transparency

Abstract

This study examines the impact of artificial intelligence (AI) and big data analytics (BDA) on financial reporting quality (FRQ) in Nigeria, with particular emphasis on the mediating role of transparency. The increasing adoption of digital technologies in accounting has transformed how financial information is generated, processed, and disclosed. However, empirical evidence on how these technologies influence reporting quality in emerging economies remains limited.
Drawing on Information Asymmetry Theory and the Technology–Organization–Environment (TOE) framework, this study investigates whether AI adoption and big data analytics capability enhance financial reporting quality directly and indirectly through transparency. A quantitative research design was employed using survey data collected from 312 accounting and finance professionals across public and private sector organizations in Nigeria. Structural Equation Modeling (PLS-SEM) was used to test the hypotheses.
The results indicate that artificial intelligence and big data analytics significantly improve financial reporting quality, while transparency plays a partial mediating role. The findings contribute to the literature on digital transformation in accounting and provide practical insights for regulators and organizations in emerging economies.