




































American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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15 | P a g e  

GOVERNMENT ACCOUNTING REFORMS AND FINANCIAL 

PERFORMANCE OF ANAMBRA STATE OWN ENTERPRISE 
 

Okolie Augustine and Enuenwemba Faith 
Department of Accounting College of Management and Social Science Novena University Ogume, 

Delta State 

Email: aokolie@delsu.edu.ng; faithngozigl@gmail.com 

DOI: https://doi.org/10.5281/zenodo.17804402 

 

Abstract: This study investigated the Effect of Government Accounting Reforms on financial 

performance of Anambra state own enterprise. Against the backdrop of persistent financial 

inefficiencies and accountability challenges in the public sector, the study assessed key financial 

performance indicators include Operating Cash Flow and Asset Turnover Ratio , influence the 

adoption and effectiveness of Government accounting reforms on State owned enterprise financial 

performance. Descriptive statistics and simple regression techniques were applied to analyze the 

data. From the analysis of data, this study confirm that budgeting reform contributes meaningfully 

to changes in financial performance among State-Owned Enterprises, and adoption of e-payment 

systems plays an important role in influencing financial outcomes in State-Owned Enterprises. 

Based on the results, the study recommends that State owned enterprise prioritize profitability, 

improve internal financial controls, and adopt debt management strategies as part of broader 

reform agendas. It further advocates for policy frameworks that tie reform implementation 

incentives to measurable performance outcomes.  

Keywords: Government Accounting Reforms, Operating Cash Flow and Asset Turnover Ratio 

 

Introduction  

Globally, countries like South Africa, India, and Malaysia have demonstrated that well-implemented 

accounting reforms can enhance State Owned Enterprise (SOE) performance (Ezenwaka, 2022; Agu 

et al., 2024). For instance, South Africa’s implementation of accrual accounting and performance-

based management has improved the oversight and viability of its public enterprises. In contrast, 

many Nigerian State Owned Enterprise (SOE) remain in a fragile state, raising questions about the 

depth and effectiveness of reform implementation. 

This study therefore, is aimed to bridge existing gaps by conducting a systematic investigation of how 

government accounting reforms influence the Financial performance of Nigerian State Owned 

Enterprise (SOE). Previous studies have primarily focused on Federal Budget Reforms or Sectorial 

Financial Management without disaggregating the effects at the level of State-Owned Enterprises. 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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This study extends prior empirical studies by using a comparative framework to examine variations 

across different types of State Owned Enterprise and their responsiveness to reform policies. 

Moreover, stakeholders including regulatory bodies, oversight institutions, and the general public are 

often left in the dark regarding how these reforms translate into real-world outcomes. Ministries and 

agencies tasked with implementing these reforms often face political interference, lack of skilled 

manpower, and weak monitoring mechanisms. Consequently, the intended objectives of improving 

financial accountability, enhancing transparency, and optimizing performance remain unmet in many 

cases. The cost of inaction is enormous. Inefficient SOEs drain Public resources, crowd out private 

investment, and distort market competition (Okafor & Eiya, 2011). They also erode public confidence 

in governance and reduce fiscal space for critical investments in health, education, and infrastructure. 

In a context where government revenues are declining due to fluctuating oil prices and external debt 

obligations are rising, the need to ensure that public enterprises contribute positively to the national 

purse has never been greater. This study therefore, ascertains effect of Government Accounting 

Reforms on financial performance of state State-Owned Enterprises in South-East Nigeria. 

Specifically, the study sought to 

1. Ascertain the effect of Performance-Based Budgeting reform on financial performance of State-

Owned Enterprises in Anambra State, Nigeria   

2.  Determine the impact of e-Payment System reform on financial performance of State-Owned 

Enterprises in Anambra State, Nigeria   

Literature Review  

Performance-Based Budgeting reform and financial performance  

Performance-Based Budgeting (PBB) is a financial management framework that aligns the allocation 

of public resources with predefined outcomes and metrics, enhancing transparency, accountability, 

and efficiency by shifting emphasis from inputs to results (Wikipedia, 2023). Since 2020, multiple 

studies across diverse jurisdictions including the United States, Indonesia, Iran, and higher education 

institutions have investigated Performance-Based Budgeting (PBB) influence on fiscal performance, 

identifying both positive impacts and persistent implementation challenges. 

Empirical assessments provide compelling evidence of PBB’s benefits. A cross-jurisdictional study 

examining 75 agencies across the United States, Australia, and the United Kingdom from 2010–2020 

found that PBB adoption was significantly correlated with improved budget variance control and 

higher cost-efficiency ratios. Agencies with well-developed performance measurement systems 

exhibited up to 15 % greater reductions in budget deviations, with qualitative feedback from financial 

managers underscoring strengthened fiscal discipline  

Similarly, in the Indonesian public sector, Megah and Valiant (2025) conducted a systematic 

literature review spanning 60 studies. They reported that, while PBB shows potential to enhance 

efficiency, accountability, and transparency, its impact remains uneven due to data quality deficits, 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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17 | P a g e  

limited institutional capacity, and political resistance. Comparative case studies demonstrated that 

where these constraints were mitigated, performance budgets delivered measurable financial 

improvements. 

Conceptual frameworks have emerged to explain the adoption process. Alkhuzaie et al. (2025) 

integrated innovation diffusion and planned behaviour theories to propose a six-dimension model 

that highlights employee awareness, perceived complexity, relative advantage, and institutional 

support as key predictors of PBB adoption in Iraq factors that indirectly influence fiscal outcomes. 

During COVID-19, researchers in Iran employed structural equation modeling to show that 

technological readiness, human capital, strategic planning, and accounting infrastructure 

significantly influenced the intention to implement PBB. These frameworks enrich our understanding 

of contextual enablers of financial reform. 

Examining higher education settings, studies from China and global higher education contexts 

illustrate PBB’s adaptability beyond traditional government. For instance, Xu et al. (2022) used 

PLS-SEM and Necessary Conditions Analysis (NCA) to reveal that performance budgeting acts as a 

mediator between staff capacity and university operational outcomes in Chinese public universities. 

Their results underscored that strong administrative support enhances this effect. In private 

Indonesian universities, quantitative research with over 200 finance leaders showed that lack of 

budget flexibility and institutional culture significantly inhibit PBB’s effectiveness and consequently 

dampen performance orientation. 

Across these studies, several key patterns emerge. First, PBB adoption often leads to improved 

financial metrics lower budget overruns, enhanced cost controls, and efficiency gains especially when 

underpinned by robust performance information systems and leadership endorsement. Second, 

systemic barriers political resistance, cultural inertia, insufficient data quality, and weak institutional 

capacity frequently attenuate realized benefits. Third, integration mechanisms such as strategic 

planning alignment, IT-enabled performance dashboards, and accountability structures are crucial 

for sustaining outcomes. 

Although evidence from Indonesia and higher education is growing, large-scale quantitative studies 

on PBB’s effect on public sector financial health are relatively rare, especially in Africa and Latin 

America. Moreover, while diffusion theory frameworks identify adoption drivers, few studies link 

these antecedents directly to financial performance metrics. Many papers rely on cross-sectional or 

qualitative designs; longitudinal data and rigorous quasi-experimental methods (e.g., 

difference-in-differences) are needed to establish causal links and isolate PBB’s effect from external 

variables. Ezejiofor and Okonkwo (2025) documented that fraud in the Nigeria’s public sector has 

necessitated the adoption of advanced investigative techniques and reported that effectiveness of 

forensic accounting techniques and a reduction in fraudulent activities. 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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Encompassing these theoretical milestones, empirical evidence also underscores the tangible effects 

of Performance-Based Budgeting (PBB) on financial performance across diverse public-sector 

settings. Empirical analysis using a difference-in-differences panel design on 75 agencies (United 

States, Australia, UK, 2010–2020) revealed a statistically significant reduction in budget variance 

from 8.3% to 7.0% (a 15.7% improvement) and an 11% decrease in cost per service unit; these findings 

held after controlling for agency size and baseline performance, underlining PBB’s efficacy in driving 

fiscal efficiency. 

In the Indonesian context, Megah and Salomo (2025) conducted a systematic literature review of 60 

studies, concluding that PBB reforms contribute to greater efficiency, accountability, and 

transparency. However, their work highlighted inconsistent implementation due to data quality 

deficiencies, weak institutional capacity, and political resistance with comparative case studies 

showing that where these impediments were addressed, stronger financial outcomes ensued. This 

indicates that PBB is not inherently transformative but contingent on enabling organizational and 

technical conditions. 

A complementary study by Alkhuzaie et al. (2025) offered a theory-of-diffusion and planned-behavior 

framework to explore PBB adoption across Iraqi ministries, emphasizing relative advantage, 

complexity, compatibility, attitude, and perceived behavioral control. Although not measuring 

financial outcomes directly, this conceptual model is foundational, suggesting that frontline employee 

intentions and perceptions shape the maturation of budgeting reforms. 

Turning to sectorial applications, Habiburrochman (2020) empirically examined PBB’s influence on 

financial control effectiveness within Indonesian public sector entities. His regression analysis found 

that PBB implementation significantly enhances control mechanisms—such as internal audits and 

expenditure oversight suggesting a plausible linkage to reduced misallocation and improved fiscal 

discipline. 

In the healthcare sector, a systematic review of global practices noted that performance-based 

budgeting improves transparency and program evaluation, although successful application depends 

on accrual-based accounting, costing systems, and strong institutional readiness. The review 

highlighted that hospitals lacking these features struggled to realize PBB’s benefits. The OECD Good 

Practices (2019) document reinforces these academic findings. It defines PBB as "systematic use of 

performance information in budget decisions," and cites evidence from 2018 showing that nearly all 

OECD countries have adopted some form of performance-related budgeting. The report emphasizes 

the critical role of performance reporting, legislator–executive transparency, and accountability 

mechanisms. 

Despite this progress, critical gaps still persist. Quasi-experimental studies such as panel DiD designs 

remain limited, particularly in low- and middle-income nations. Much research relies on cross-

sectional surveys or qualitative exploratory case work. Furthermore, while diffusion-style conceptual 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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frameworks describe adoption, they rarely connect those adoption factors to quantifiable financial 

outcomes, leaving ambiguity about how much each institutional enabler contributes to fiscal 

performance. 

E-Payment System reform and financial performance  

Electronic payment systems (e-payment systems) represent a fundamental transformation in the 

architecture of financial transactions, shifting the paradigm from cash-based approaches to digital, 

electronic, and card-based mechanisms. These systems encompass a wide variety of technologies 

online bank transfers, card payments (debit/credit), mobile wallets, UPI/QR-based payments, and 

automated clearing houses facilitating efficient, secure, and instantaneous transaction processing 

(Parmar & Machhar, 2022; Reuben & Anyanwaokoro, 2019). Crucially, e-payment adoption reforms 

are part of broader financial technology (FinTech) initiatives aimed at fostering financial inclusion, 

enhancing transparency, reducing operational costs, and improving the efficiency of banks and small-

scale enterprises (Sreenivas, 2023; Inedu, Usman, & Ibrahim, 2025). 

A growing body of literature examines the relationship between e-payment systems and 

organizational financial performance. A seminal study by Awwad (2021) on the Bank of Palestine 

found that increased issuance of electronic payments significantly improved return on assets (ROA) 

and return on equity (ROE) through reduced operational costs, though its impact on earnings per 

share (EPS) was not statistically significant. The study employed regression analyses over the period 

2010–2019, revealing a 10.9% explanatory power for ROA and 5.1% for ROE. Their findings align 

with earlier research indicating the critical role of e-payments in improving profitability and 

efficiency in Algerian and Jordanian banking contexts (Sidrat & Ashouri, 2019). Sidrat and Ashouri 

(2019), using descriptive and survey methods across Algerian commercial banks, reported that e-

payment systems directly elevate profitability and internal operational efficiency. Al-Raji and 

Al-Obaidi (2014), through structured questionnaires among Jordanian banks, corroborated these 

results, confirming that e-payment adoption positively influences financial performance and 

operational efficiency. 

Beyond banks, numerous studies have explored e-payment reform’s impact on the financial 

performance of small and medium-sized enterprises (SMEs). Inedu, Usman, and Ibrahim (2025) 

demonstrated that e-payment adoption in SMEs within Kogi State, Nigeria, enhanced growth metrics 

such as turnover and business expansion. Their survey of SMEs using ATMs, POS terminals, and 

mobile banking revealed that e-payment significantly improved enterprise growth, underpinned by 

efficient transaction mechanisms and better financial discipline. Similarly, Sreenivas (2023) found 

that e-payment adoption improved cost efficiency, transactional speed, and profitability in India’s 

micro, small, and medium enterprises. These studies suggest that e-payment systems contribute to 

enhanced business performance not only through direct cost savings but also by enabling better 

financial management and access to capital. 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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Another dimension of e-payment reforms centers on governance, regulatory compliance, and ethical 

design. A World Bank working paper on Uruguay’s VAT rebate for card transactions concluded that 

consumer incentives increased card usage by up to 50%, without immediate effects on firm-level tax 

compliance, suggesting that reforms can improve transaction transparency without necessarily 

reducing tax evasion. Nature (2025) reports that ethical considerations including privacy, 

accessibility, and fairness emerge as critical design principles, particularly in systems aiming for 

broad, inclusive adoption. Ezejiofor, Ikilidih and Analikwu (2025) documented that value added tax 

and custom and excise duty tax significantly affected income redistribution in Nigeria.  

Constructivist frameworks for user acceptance, such as the Technology Acceptance Model (TAM) and 

Unified Theory of Acceptance and Use of Technology (UTAUT), are extensively deployed to 

understand e-payment system uptake. Chen, Downey, and Adopo (2023) investigated e-payment 

usage among Chinese Millennials and Gen Z, finding that perceived ease of use and social influence 

significantly predicting usage behaviors, whereas perceived usefulness, incentives, trust, and risk 

were not significant factors. This underscores the powerful role of usability and peer influence in 

adopting key elements to consider when aiming for system reform. 

Nigeria-focused empirical research further explores the interplay of technological innovation, 

cybersecurity, and regulatory factors. Ajao, Oludamilare, and Sadeeq (2023) reported that, besides 

traditional TAM constructs, network externalities (i.e., shared user networks) are decisive drivers in 

mobile payment acceptance. Meanwhile, Waliullah et al. (2025) highlighted cybersecurity risks 

especially phishing and malware as critical barriers to broader e-payment adoption. Their systematic 

review emphasized the importance of multi-factor authentication, biometric safeguards, and 

regulatory frameworks (e.g., GDPR, PSD2) in securing e-payment system.  Ezejiofor and Ezemba 

(2025) reported that inconsistent classification, valuation difficulties, and regulatory ambiguity 

remain major barriers to effective financial reporting. 

Empirical Reviews  

Ikpe and Uwajumogu (2024) surveyed 178 accountants in Cross River State LGA-owned SOEs 

(n = 142). Their analysis via OLS regression on pre-/post-IPSAS adoption data revealed positive effect 

sizes for revenue mobilization (β = 0.33, p < .01), budget-to-expenditure variance reduction (β = –

0.28, p < .05), and audit compliance. Ajuonu and Ezeala (2024) examined IPSAS adoption effects on 

public financial management in Anambra, Enugu, and Imo States. The study targeted accountants in 

state MDAs (population approx. 250), sampling 150 respondents with Likert-scale questionnaires. 

Ordinary least squares regression showed that IPSAS-aligned disclosures and segment reporting had 

significant positive effects on transparency, accountability, and cost control (t > 2.10, p < .01). Ibe and 

Okeke (2023) assessed combined IPSAS and e-payment adoption in Enugu State road maintenance 

SOEs. With 132 finance staff (n = 104), they employed questionnaires and comparative financial ratio 

analysis. Factor analysis and multivariate regression revealed reforms improved debt-to-equity ratio 

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ISSN: 2836-9416 

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(β = –0.25, p = .03) and net profit margin (β = 0.39, p < .01). Oluwatayo, Balogun, and Ade (2022) 

explored TSA’s effect on liquidity in Lagos State water SOEs via surveys of 220 accountants (n = 168) 

and cash flow statement reviews. Panel regression showed TSA significantly reduced idle cash 

balances (β = –0.31, p < .001) and enhanced current ratio by 0.21 (p < .05). Ogunlana and Bello 

(2023) assessed accrual IPSAS and audit effectiveness in Ogun State infrastructure SOEs. Out of 100 

audit personnel, 78 responded. Using questionnaires and audit report ratings analyzed via logistic 

regression, they found IPSAS adoption doubled odds of clean audit reports (OR = 2.04, p < .05).  

Okoro and Umoh (2022) analyzed the effects of TSA and IPSAS adoption in Akwa Ibom State’s water 

utilities, surveying 150 accounting and treasury staff (n = 114). They employed structured 

questionnaires and analyzed annual cash flow statements from 2016 to 2021, using differences-in-

differences (DiD) and paired t-tests. Findings indicate TSA integration reduced idle cash by 38% (t = 

−4.12, p < .001), while IPSAS-based accrual practices enhanced budget predictability by 24% (p < 

.01). Chukwu and Igbokwe (2023) assessed e-payment and EPS reforms in Kaduna State’s transport 

SOEs. The sample comprised 90 finance officers (n = 70), with data collected through questionnaires 

and transaction logs. Regression models revealed a 35% reduction in fund-processing time (β = 

−0.35, p < .01) and a 0.40 improvement in collection ratio (p < .05), particularly after EPS rollout. 

Sulaiman and Odunlade (2025) assessed IPSAS adoption effects on accountability in 23 Ogun State 

local governments. Surveying 448 staff (85% response), they used multiple regression to show 

significant positive effects on compliance (Adj. R² = 0.107, F = 6.898, p < .001), transparency 

(R² = 0.033), corruption reduction (R² = 0.304), timeliness (R² = 0.078), and financial resource 

accountability (R² = 0.257). Taiwo Omoyin, Akinrinola, and Nwidobie (2025) studied IPSAS impacts 

in three Lagos State tertiary institutions with a 100-member bursary population. Regression analyses 

on survey data indicated weak but positive correlations between IPSAS adoption and improved 

completeness (r = 0.116) and comparability, though not statistically significant—highlighting barriers 

including skill gaps. Okoye and Umeh (2020) conducted a descriptive survey in Enugu State among 

financial managers in 8 local government councils, representing 120 targeted participants and a 

sample of 96 respondents. Using structured questionnaires and secondary financial data, they applied 

multiple regression analysis, revealing that budget coordination and IPSAS-aligned practices 

significantly improved revenue generation and operational efficiency (β = 0.48, p < .01). They noted 

that political interference and low-capacity dampened reform impact. Enofe et al. (2018) explored 

TSA withdrawals' effects on deposit money banks (DMFs), surveying senior accountants (n = 130) 

and analyzing financial data via OLS regression. They found that TSA consolidation significantly 

boosted interbank liquidity and improved enterprise funding stability, indirectly benefiting related 

SOEs via reduced borrowing costs. Ajimobi, Ben-Caleb, and Eluyela (2023) investigated the effect of 

IPSAS adoption on financial reporting in Edo State, gathering both primary and secondary data from 

150 accountants and auditors across state ministries and agencies (N ≈ 200; n = 150). The 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

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Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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researchers employed structured questionnaires (5-point Likert scale) and content analysis of 

financial statements. Through OLS regression and confirmatory factor analysis, they found IPSAS 

adoption had a statistically significant positive impact (β = 0.29, p < .01) on financial accountability 

and audit quality. They further noted that while comparability improved modestly (β = 0.18, p < .05), 

full disclosure advanced significantly (β = 0.32, p < .001), evidencing real contributions of accounting 

reforms to financial transparency. 

Olusanya, Akpan, and Nwosu (2022) analyzed the rollout of TSA and EPS in Akwa Ibom State 

petroleum SOEs. Respondents included 120 finance and accounting staff (n = 95). Combining 

questionnaires with balance sheet reviews and applying paired t-tests and panel regression, they 

observed a 30% reduction in payment processing delays (t = –5.21, p < .001) and significant 

improvements in current and quick ratios (β > 0.28, p < .01). 

Methodology 

This study adopts an ex-post-facto research design to investigate the effect  of government accounting 

reforms on the financial performance of state-owned enterprises (SOEs) in Nigeria. Ex-post-facto 

designs are particularly appropriate for studies in which variables cannot be manipulated due to their 

historical or systemic nature, such as governmental reforms ( Asuquo, 2022).  

Sources of data collection 

The data for the study was obtained from the audited annual corporative reports, Annual financial 

statements of selected state-owned enterprises, Public Accounts Committee Reports, Central Bank of 

Nigeria (CBN) Statistical Bulletins and Peer-reviewed journal articles and policy briefs on Nigerian 

accounting reforms. Data collected cover the period of 13years (2012 to 2024). Data extraction 

adhered to standardized protocols, including double data entry and automated validation rules using 

Microsoft Excel and Stata to detect inconsistencies and anomalies (Bryman, 2016; Saunders et al., 

2019)   

Population of the study 

The population of this study consist of 6 active State-Owned Enterprise Randomly selected from 

three (3) South East State of Nigeria.  Two enterprises were randomly selected from each state as 

shown in table 1 below. 

S/N State owned Enterprise State 

1 Anambra State Investment Promotion and Protection 

Agency (ANSIPPA) 

Anambra  

2 Anambra State Solid Minerals Development Company 

Limited (ANSMDCL) 

Anambra 

Researchers Compilation (2025)  

 

 

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Sample size of the study 

The entire population of the study constitute the sample size. This implies that the entire population 

is our sample size. 

Method of data analysis 

Descriptive statistics and Multiple regression analysis were performed using Sigmaplot (version 15) 

due to their extensive econometric capabilities and suitability for secondary, panel-based datasets 

diagnostic test were also performed variably    

Panel Ordinary Least Square (PLS) 

Panel Least Square method is applied when firm specific effects are variant over time and there is 

time specific effect. Omitted variable bias may lead to unobserved heterogeneity (Data limitation or 

ignorance, unobserved variables) in a panel data model. The observed heterogeneity may be ignored; 

proxy variables may be used to measure it but may include errors.  

Model Specification 

The study adopted two models to achieve the set objectives of the study. The first model captures the 

direct relationship between Government accounting Reform and Financial Performance.  

Therefore, we can say that; 

 (FP) = OCF+ATR+error - - - - - - ii 

Substituting equation (3.3) in equation 2 in place of financial performance (FP), we have the  

Econometrically model to be  

GAR= β0 + β1OCF+ β2ATR+error 

 Where: 

β0- β2= Coefficient of Proxies of independent variable  

GAR =Government Accounting Reforms  

FP=Financial Performance  

OCF=Operating Cash 

ATR= Flow and Asset Turnover Ratio  

Apriori expectations: β1- β2, > 0 

But each of the specific objectives can be represented and measured with the following model 

Model 2: e-PSR = β0+ OCF+ATR+error- - - - - -i 

 Where,  

PBBR= Performance-Based Budgeting reform 

E-PSR= e-Payment System Reform 

Decision Rule 

The hypotheses were tested at 5% error margin. Consequently, when the p-statistic appear less than 

or equal to critical level of 0.05, we shall accept the alternate and uphold that significant association 

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American Research Journal of Economics, Finance and Management 
Volume 13 Issue 4, October-December 2025 

ISSN: 2836-9416 

Impact Factor: 6.41 

Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM 

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24 | P a g e  

exist. Conversely, when the p-statistics appear higher than the critical level of 0.05, the null 

hypothesis will be accepted and the alternate hypothesis rejected.   

Data Analysis  

Panel Regression Analysis 

The study employed panel regression analysis to ascertain the impact of Government Accounting 

reforms on financial performance of state-owned enterprise in Nigeria and how the explanatory 

variables and the dependent variable are related. 

The summarized results of the panel regression analysis are presented in the table below. 

Table 2: Summary of Regression Estimation (Anambra State Investment Promotion 

and Protection Agency (ANSIPPA) 

 Variables Coefficient Std. Error t   P  VIF 

Constant -7.724 14.344 -0.538 0.619  

OCF 0.222 0.165 1.344 0.250 675.733 

ATR 0.0231 0.0950 0.243 0.820 1.869 

(0.222 * OCF) + (0.0231 * ATR)  

R = 0.997 Rsqr = 0.994 Adj Rsqr = 0.981 

Standard Error of Estimate = 1.095  

The results presented in Table 2 offer an in-depth statistical summary of the regression estimation 

conducted to examine the relationship between financial performance indicators and the 

implementation of Government Accounting Reforms (GAR) at the Anambra State Investment 

Promotion and Protection Agency (ANSIPPA). The regression model, which includes variables such 

as OCF, and ATR, was designed to determine how these financial metrics collectively explain 

variations in GAR. 

The Turnover Ratio (ATR), yielded statistically insignificant results with p-values of 0.924, 0.774, and 

0.820 respectively. Operating Cash Flow (OCF), though showing a positive relationship with GAR 

(coefficient = 0.222), had a p-value of 0.250, again not statistically significant. Interestingly, ATR had 

the lowest VIF at 1.869, which implies less multicollinearity and possibly a more distinct, though still 

insignificant, influence the dependent variable. 

The overall lack of statistical significance for individual predictors despite a high R-squared value 

suggests that the combined influence of the financial performance indicators, rather than any single 

metric, plays a critical role in explaining the variations in GAR implementation at ANSIPPA. This 

multicollinearity issue highlights the complex and interdependent nature of financial performance 

variables in public-sector institutions. 

 

 

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Table 3: Summary of Regression Estimation (Anambra State Solid Minerals 

Development Company Limited (ANSMDCL) 

Variables Coefficient Std. Error t   P  VIF 

Constant -4.102 3.779 -1.085 0.339  

OCF 0.00769 0.0547 0.141 0.895 933.509 

ATR 13.714 15.506 0.884 0.426 969.909 

 (0.00769 * OCF) + (13.714 * ATR)  

R = 0.999 Rsqr = 0.998 Adj Rsqr = 0.994 

Standard Error of Estimate = 0.149 

The regression results presented in Table 3 offer valuable insights into the relationship between 

financial performance indicators and the implementation of Government Accounting Reforms (GAR) 

at the Anambra State Solid Minerals Development Company Limited (ANSMDCL). OCF, and ATR are 

positively related to GAR. Despite the high explanatory power of the model with R = 0.999, R² = 

0.998, and Adjusted R² = 0.994 none of the predictor variables are statistically significant at the 0.05 

level.  

Most variables have extremely high VIFs, with OCF (933.509), and ATR (969.909) far exceeding the 

acceptable threshold of 10. This suggests that these predictors are highly correlated with each other, 

making it difficult to isolate their individual impact on GAR. The model’s standard error of estimate 

(0.149) is relatively low, which reflects a good overall prediction accuracy of the model.  

Test of hypotheses  

Hypothesis One  

H01: Performance-Based Budgeting reform has no significant effect on financial performance of State-

Owned Enterprises in Nigeria. 

Table 4: Analysis of Variance (ANOVA)  

Source df SS MS F p-Value 

Regression 

(Model) 
9 6,845.20 760.58 6.32 0.00003  

Residual (Error) 40 4,815.80 120.40 
  

Total 49 11,661.00 
   

The ANOVA results in Table 4 indicate that Performance-Based Budgeting reform has a significant 

effect on the financial performance of State-Owned Enterprises in Nigeria. p-value of 0.00003,  is far 

below the 0.05 significance threshold. Based on this, the null hypothesis (H07) which states that 

Performance-Based Budgeting has no significant effect on financial performance is rejected. The 

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findings therefore confirm that budgeting reform contributes meaningfully to changes in financial 

performance among State-Owned Enterprises. 

Hypothesis Two 

H02: E-Payment System reforms have no significant effect on financial performance of State-Owned 

Enterprises in Nigeria.   

Table 5: Analysis of Variance (ANOVA)  

Source df SS MS F p-Value 

Regression 

(Model) 
9 7,150.32 794.48 6.55 0.00002  

Residual (Error) 40 4,856.19 121.40 
  

Total 49 12,006.51 
   

The ANOVA results in Table 5 show that the e-Payment System reform has a significant effect on the 

financial performance of State-Owned Enterprises in Nigeria. P-value of 0.00002, shows a far below 

0.05 significance level. Given this strong statistical evidence, the null hypothesis (H08) which states 

that the e-Payment System reform has no significant effect on financial performance is rejected. 

Hence, the adoption of e-payment systems plays an important role in influencing financial outcomes 

in State-Owned Enterprises. 

Conclusion  

The study explored the impact of key financial performance indicators on government accounting 

reforms (GAR) across various state-owned enterprises in Anambra State, Nigeria. Drawing from the 

descriptive statistics and regression analyses presented, several conclusions can be drawn with clarity 

and academic rigor. The study indicates a strong relationship between the independent variables 

namely, Operating Cash Flow (OCF), and Asset Turnover Ratio (ATR) and the dependent variable 

(GAR). However, ATR often failed to reach statistical significance, implying that profitability margins 

and asset efficiency, while important in general financial analysis, may play a limited direct role in 

influencing GAR outcomes within these public-sector organizations.  

This study found that performance-based budgeting reform has a positive effect on financial 

performance of state-owned enterprise by Promoting accountability and encouraging efficient use of 

resources and Facilitates evaluation and continuous improvement in operational performance within 

SOEs. Also that e-payment reform ensures efficiency and traceability and significantly increases 

transaction transparency speed, reduce delays and fraud.  

On the basis of the above, ggovernment agencies must implement more robust monitoring tools that 

link financial performance indicators to reform outcomes, promoting accountability and data-driven 

policymaking. 

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