Impact of Forensic accounting on the financial performance of deposit money banks in Nigeria.

Accounting

Forensic accounting is an effective means of preventing fraud and thereby enhancing the performance of Nigeria's deposit money banks. One of the forensic accounting tools that will be employed in this investigation is fraud detection. When used appropriately, fraud reporting, litigation, and prevention can all help deposit money banks achieve greater financial performance. From 2001 to 2020, this study will use a quantitative research design to collect secondary data on the performance of twenty deposit money banks by analyzing forensic accounting indicators from the Nigerian central bank's annual bulletin and the Nigeria stock exchange publication. The primary objective of this study is to ascertain the financial impact of forensic accounting on Nigerian deposit money institutions. The data for this study were examined using panel data analysis via the Hausman test, which determined that the analysis should be conducted using a fixed-effect regression model. The fixed effect regression analysis demonstrates that forensic accounting has a considerable favorable effect on the financial performance of Nigeria's deposit money institutions. Additionally, the fixed-effect model demonstrates a significant association between forensic accounting instruments and deposit money bank financial performance. Meanwhile, a Pearson Correlation analysis was performed, which revealed a positive and significant association between forensic accounting instruments and the financial performance of deposit money banks. According to the analysis's findings, it is recommended that deposit money banks should hire forensic accounting experts and collaborate with the economic and financial crime commission (EFCC) via the Nigerian central bank to effectively mitigate modern-day fraud and avoid money being lost to fraud that jeopardizes the deposit money banks' financial performance..

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