Human Capital Accounting and Financial Performance of Manufacturing Firms in Nigeria
DOI:
https://doi.org/10.31384/jisrmsse/2024.30.6.3Abstract
Any organization's success depends on the capacity of human capital to maximize other resources such as property, equipment and money effectively and efficiently, because human resources are the greatest assets at the disposal of companies. This research is more of descriptive in nature and the application of mathematical modelling techniques. Research was undertaken from the Security and Exchange Commission platform on listed manufacturing firms spanning from 2010-2019. The scope was to have a reliable data for the research. The data was analyzed by regression using Microsoft Excel 2016. The study found that the variable of recruitment cost has a negative significant relationship with return on asset with Coef. = -2E-06, t-value = -0.67617 and P-value = 0.517996; the variable of employee acquisition cost has a negative significant relationship with return on asset with the Coef. = -4E.06, t-value = -4.55662 and P-value = 0.001858 while the variable of employee staff cost has a negative significant relationship with return on asset with the Coef. = . -9.5E-07, t-value = -5.27705 and P-value = 0.0000749. This implies that an increase in recruitment and employee acquisition and employee staff cost will cause a decrease in return on asset. Going by the result of this study, we conclude that there is no significant relationship between human capital accounting and financial performance of listed manufacturing firms in Nigeria. Hence, this explains why manufacturing firms has a strong human capital but a very weak financial performance while recommending that Manufacturing firms should imbibe the culture of capitalizing and reporting all expenditures/investments on human capital that improve the quality and productivity.
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