HOPE IFEOMA ORJINTA,COSMAS ANAYOCHUKWU NWANKWO ,MACDONALD ISAAC KANYANGALE
DOI: https://doi.org/Considering the rapid advancement of technology and rapid environmental changes that have given the economy an accelerating pace towards digitalized and sustainable development. This study therefore, examines how different attributes of consumer firms can enhance conservative accounting for a sustainable development in this digital era in Nigeria. The study employed ex-post facto and longitudinal research design. The study relies on secondary data derived from various consumer goods companies’ financial statements and the Nigerian Exchange fact book to determine and measure the level of applicability of conservative accounting by various firms in corporate financial statements, applying an all-inclusive multivariate analysis. Samples of 15 consumer goods firms quoted in Nigeria Exchange Group were used for the period of ten (10) years spanning 2014 to 2023. The secondary sources of data were collected from annual reports of the selected consumer goods companies and three (3) specific objectives and hypotheses were subjected to some preliminary data tests like descriptive statistics, and Pearson correlation analysis and were tested and analyzed using panel least regression analysis. The empirical analysis using a total of 150 firm-year observations, shows that firm profitability has positive and significant effect on conservative accounting which was statistically significant at 5% level of significance to ensure sustainable development in a digital era while capital intensity has negative and significant effect in maintaining application of conservative accounting in Nigerian consumer goods which was statistically significant at 5% level of significance. We also discovered that firm leverage has negative but insignificant effect on conservative accounting application among consumer goods firms in Nigeria. In line with the above findings, this study therefore recommends among others that, management of consumer goods firms in Nigeria should increase their profitability base to be more conservative in accounting while excess investment in non-current assets should be minimized in order to improve their application of conservative accounting for a sustainable business development in this digital era of technological enhancement. Generally, managers should have knowledge and understanding of accounting to apply appropriate policies to minimize risks in the business process.
