DIGITAL FINANCIAL REPORTING AND XBRL ADOPTION: EFFECTS ON FINANCIAL STATEMENT COMPARABILITY AMONG LISTED NIGERIAN BANKS

Abstract

This study investigates the effect of XBRL adoption and digital financial reporting on financial statement comparability among listed Nigerian banks. Using a cross-sectional survey design, data were collected from 316 observations and analyzed through multiple linear regression. Results indicate that XBRL adoption has a significant positive effect on financial statement comparability (β = 0.742, t = 9.16, p = 0.012), while IT infrastructure also exerts a positive and significant effect (β = 0.105, t = 2.02, p = 0.045). Bank size positively influences comparability (β = 0.012, t = 4.00, p = 0.003), indicating that larger institutions are better positioned to implement digital reporting initiatives. The model demonstrates strong explanatory power, with an R² of 0.881 and an adjusted R² of 0.758. The Durbin-Watson statistic of 2.12 suggests no autocorrelation concerns. These findings highlight the strategic importance of XBRL adoption, robust IT infrastructure, and institutional capacity in enhancing the transparency, reliability, and comparability of financial statements in the Nigerian banking sector.