THE CORRELATION BETWEEN MANAGERIAL ACCOUNTING AND THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA.

Abstract

This paper examines the relationship between Managerial Accounting Practices (MAP) and Financial Performance (FP) in Nigerian Deposit Money Banks. From a pilot study, fifty Nigerian Deposit Money Banks were sampled. Data were collected through a questionnaire. Analyses were performed employing descriptive statistics and Pearson’s product moment coefficient of correlation using the statistical package for social sciences (SPSS). Results indicate a significantly strong positive correlation (r = 0.984, p < 0.001) between MAP and FP, indicating an influential relationship. The findings also indicated agreement among respondents on the effective utilization of MAP in decision-making, strategic planning, resource allocation, cost control, performance evaluation, and enhancing decision-making efficiency within these banks. Similarly, respondents acknowledged the correlation between FP and financial data management, risk management, regulatory compliance, investor attraction, and resilience to economic fluctuations. The study recommendations are that deposit money banks in Nigeria should continue to adopt and implement effective managerial accounting practices, deposit money banks in Nigeria should provide their employees with training on managerial accounting concepts and techniques and deposit money banks in Nigeria should use managerial accounting information to make better decisions about pricing, resource allocation, and cost control.