Effect of Human Resource Accounting on Financial Performance of Quoted Deposit Money Banks in Nigeria

Abstract

The main objective of this study is to ascertain the effect of Human Resource Accounting on Financial Performance of deposit money banks listed on Nigeria Stock Exchange. The specific objectives are to ascertain the effect or otherwise of staff cost on return on asset, return on equity and market-to book value of banks listed on the floor of Nigeria Stock Exchange from 2010-2015. Ex-post fact research design was used for this study. Secondary data were sourced from the publications of Nigeria stock exchange. Inferential statistics of the hypotheses were carried out with the aid of STATA 13 statistical software using Co-efficient of correlation and Ordinary Least Square (OLS) regression analysis. Findings of this study showed that Human Resource Accounting has a positive and statistically significant effect on Financial Performance at 5% significance level. It is recommended among others that Human Resource capital should be included in the statement of financial position of organizations to aid investment decision.

Keywords: Human Resource Accounting, Financial Performance, Human Capital Investment

JEL Classification: M41