Human Resource Accounting and Financial Performance of Listed Service Firms in Nigeria
Keywords:
Human Resource Accounting, Health and Safety costs, Retirement Benefit costs, Remuneration costs, Training and Development costs, Return on Assets
Abstract
This study examined human resource accounting and financial performance of listed service firms in Nigeria. Population of the study consisted of all 22 service firms listed in the Nigerian Exchange Group, while purposive sampling technique was used to select 14 of the firms which constituted the study’s sample size. Four hypotheses were formulated for the study in line with the variables of the study, and data were extracted from the financial statements of the sampled firms. Analysis was conducted using Dynamic Estimated Generalized Least Squares (DEGLS) Technique and the results indicated that both employees’ health and safety costs, employees training and development costs and employees’ retirement benefits costs has no significant relationship with financial performance of listed services companies in Nigeria, whereas, employees’ remuneration costs have significant relationship with financial performance of listed service firms in Nigeria. The study therefore concludes that human resource accounting has a relationship with financial performance of listed service firms in Nigeria even though the relationship is somewhat insignificant. The study therefore recommends among others, that service firms intending to measure their financial performance using ROA in relation to employees’ health and safety cost are advised not to since the result revealed a lack of any significant relationship between the two variables.
References
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financial performance of listed deposit money banks in Nigeria. Research Journal
of Finance and Accounting, 15(3)
Adesanmi, T. A., Opeyemi, M. A., & Wilson, A. A. (2024). Human resource cost and return on
assets of listed manufacturing firms in Nigeria. European Modern Studies Journal,8(2).
Adewoye, J. O. & Tella, A. R. (2024). Impact of the human resource accounting system on employee performance–information. International Journal of Progressive Research inEngineering Management and Science (Ijprems) Vol. 04, Issue 06, June 2024, pp: 2314-2322.
Akinjare, Y. S., Idowu, M. A. & Sule, T.O. (2019). The impact of human resource accounting
(HRA) on the performance of Nigerian Firms. International. Journal of Social and
Management Sciences, 7, 252-265.
Akintoye, I.R. (2012). The relevance of human resource accounting to effective financial reporting.International Journal of Business Management and Economic Research, 3, 566-572.
Akintoye, I. R. (2018). The role of human resources management in improving organizational
performance. Journal of Economics and Sustainable Development, 9(11), 29-36.
Amahalu, N. N, Abiahu, M. C., Obi, J. C., & Okika, E. C. (2017). Effect of human resources
accounting on the financial performance of quoted deposit money banks in Nigeria.
International Journal of Business Administration, 3(5), 40-53.
American Accounting Association ‘s (1973) Committee on human resource accounting, the
accounting review supplement to volume XLVIII.
Andrew, J. & Higson, H. (2008). Graduate Employability, 'Soft Skills' Versus 'Hard' Business Knowledge: A European Study. Higher Education in Europe, 33(4), 411-422.
Ashton, C. L. M. (2005). Managing talent for competitive advantage: Taking a systemic approach
to Talent Management. Strategic HR Review, 4, 28-31.
Babalola, J. B. (2003). Budget Preparation and Expenditure Control in Education, Basic Text in
Educational Planning. Awemark Industrial Printers, Ibadan.
Bankole, A. S. (2020). Investigating the effect of human resource cost on financial performance
of listed consumer goods firms in Nigeria. International Journal of Economics, Commerce andManagement, 8(5), 54-65.
Beida, P. O. (2024). Effect of human resources accounting (HRA) cost information on
investment decisions of listed assurance companies in Nigeria. International Journal
of Research and Scientific Innovation (IJRSI). ISSN 2321-2705
Bhovi, B. (2016.) A Study of Human Resources Accounting Models and Practices in Organization.
GE International Journal of Management Research, 4, 22-37.
De Hoyos, R. E. & Sarafidis, V. (2006) Testing for cross-sectional dependence inpanel-data models. The Stata Journal, 6(4), 482–496
Ekwutosi, E., & Okeke, I. V., (2024). Human resource planning and organizational productivity
in manufacturing firms in Anambra state, Nigeria. International Journal of Business &
Law Research 12(1), 105-121.
Enekwe, C. I., Udeh, S., & Akpan, F. E. (2022). Influence of human resources valuation on return
on assets of listed oil and gas companies in Nigeria. Journal of Accounting Information and Innovation, 8(6).
Etim, E. P. & Effiong, A. E. (2021). The impact of employee health and safety cost on
organizational performance: Evidence from selected food and beverage firms in Nigeria.
Journal of Management and Training for Industries, 1(1), 20-31.
Flamholtz, E. G. (2015). Human resource accounting today: human resource accounting practices-
an India experience Integral Review- A Journal of management. 5(2),120-129.
Gao, J., Greenberg, R., Wong-On-Wing, B. & Wong, P. (2015). Human resource accounting and
intellectual capital in China. Journal of Intellectual Capital, 16(3), 641-655.
Gujarati, D. N. (2004). Basic econometrics. McGraw-Hill Companies, New York.
Haitham, A. H. & Hassan, A. (2024). Exploring the link between human resource management
practices and financial performance: The moderating effect of organizational culture. Uncertain Supply Chain Management 12 (2024) 1885–1902.
Herath, S. K. & Naser, G. N. (2016). The impact of human resource management practices on
turnover, productivity, and corporate financial performance. Procedia Economics and
Finance, 35, 468-475.
Kankpang, A. K., Ogar-Abang, J. O., Oko J. O. & Animpuye (2024). Human resource cost and
profitability of oil and gas companies in Nigeria. Nigerian Journal of Management Sciences,25(1).
Khowanas, S.Q., Bayar, A. I. & Hassan, M. A. (2021). Human resources accounting and financial
performance. Journal of Humanities, 3(3), 5-14.
Kirfi, A. M. & Abdullahi, M. (2012). Human resource accounting practices in selected Nigerian
companies. Journal of Accounting and Taxation, 4(3), 43-51.
Korolo, A. S. & Korolo, E. O. (2024). Human resource cost and corporate financial
performance of listed deposit money banks in Nigeria. Fudma Journal of Accounting and Finance Research, 2(2).
Lambe I., Ameh, J. & Dinah, S. D. (2022). Effect of Human Resources Accounting on Financial
Performance of Listed Consumer Goods Firms in Nigeria
Lestari, F. D. & Setiany, E. (2023). The impact of governance, audit quality, and financial performance on increasing corporate value. International Journal for Multidisciplinary Research, 5(2), 1-17.
Maeso-Fernandez, F., Osbat, C. & Schnatz, B. (2004). Towards the estimation of equilibrium exchange rates for CEE acceding countries: Methodological issues and a panel cointegration perspective. Working paper Series No. 353 / M
Makkos, Z., Szamosi, L. T. & Szabó, Z. P. (2020). Human resource management and competitive
advantage in small and medium-sized enterprises. Journal of Competitiveness, 12(2), 22-37.
Manukaji, I. J., Osisioma B.C. & Okoye, P.V.C. (2019). Effect of Human Resource Development
on Performance of Quoted Companies in Nigeria. Journal of Accounting and Financial
Management, 5, 55-64.
Ndum & Oranefo (2021). Human Resource Cost and Financial Performance: A Study of Quoted
Brewery Firms in Nigeria. International Journal of Innovative Finance and Economics
Research,9,73-84
Nwauzor, R. & Longjohn, O. (2020). An investigation into human resources cost and
organizational performance in selected Nigerian deposit money banks. Journal of Economics and Behavioral Studies, 12(6), 121-130.
Ogunbiyi-Davies, B.A., Alao, M.E., Aremu, P.O. & Olalere, M.D. (2023). Human Resources
Accounting and Financial Performance of Some Food and Beverages in Nigeria. Open
Access Library Journal, 10, 1-17.
Okafor, U. I., OHachosim, C. I. & Oji, R. N. (2022). Expenditure in human resource and
financial performance of quoted manufacturing companies in Nigeria. East African
Scholars Publisher, Kenya Volume-5 | Issue-2 | Mar-2022.
Olaniyi, O. (2010). Rethinking Government Private Sector Relationship in Nigeria. Nigerian
Journal of Economics and Social Studies, 52, 109-134.
Onuka, A.O. & Ajayi, K. (2012). Effects of Manpower Development on Workers’ Job
Performance. European Journal of Educational Studies, 4, 423-433.
Onyekwelu, C.O., & Ironkwe, U. I. (2021). Human resources accounting and corporate financial
performance of quoted companies in Nigeria. Research Journal of Management Practice,
7(3), 20-39.
Oswald, O. O., John U. I. & Michael I. N. (2024). Human resource accounting and financial
performance of micro finance banks in Nigeria. Journal of Research in Humanities and SocialScience, 9(5)
Peters, G. T. & Ogaluzor, O. I. (2022). Assessing the effect of employee size and employee cost
on the financial performance of listed deposit money banks in Nigeria. African Journal of
Business and Economic Development, 2(11).
Prosvirkina, E. (2014). Human Resources Effectiveness in the Russian Banking Industry.
Humanity & Social Sciences Journal, 9, 11-17.
Roslender, R. (2004). Accounting for intellectual capital: Rethinking its theoretical
underpinnings. Measuring Business Excellence, 8, 38-45.
Reeta, A. (2015). Problems in adoption and application of human resource accounting: A
Survey. International Journal of Management Research, 3, 150-159.
Sajuyigbe, A. S. & Ikotun, A.O. (2020). Human Resource Accounting and Organizational
Performance: Empirical Investigation of Nigerian Banks. International Journal of Economics Research, 17(1).
Ubesie, M. C., Eneh, C. A. & Udeh, N. (2019). Effect of human capital expenditures on
corporate social responsibility of oil and gas firms in Nigeria. American Journal of
Theoretical and Applied Business, 5(4).
Worimegbe, T. M., Akinyede, O. M. & Ojedele, M. I. (2023). Human resource accounting and
profitability of deposit money banks in Nigeria. International Journal of Research Publicationand Reviews, 4(6), 3437-3444.
financial performance of listed deposit money banks in Nigeria. Research Journal
of Finance and Accounting, 15(3)
Adesanmi, T. A., Opeyemi, M. A., & Wilson, A. A. (2024). Human resource cost and return on
assets of listed manufacturing firms in Nigeria. European Modern Studies Journal,8(2).
Adewoye, J. O. & Tella, A. R. (2024). Impact of the human resource accounting system on employee performance–information. International Journal of Progressive Research inEngineering Management and Science (Ijprems) Vol. 04, Issue 06, June 2024, pp: 2314-2322.
Akinjare, Y. S., Idowu, M. A. & Sule, T.O. (2019). The impact of human resource accounting
(HRA) on the performance of Nigerian Firms. International. Journal of Social and
Management Sciences, 7, 252-265.
Akintoye, I.R. (2012). The relevance of human resource accounting to effective financial reporting.International Journal of Business Management and Economic Research, 3, 566-572.
Akintoye, I. R. (2018). The role of human resources management in improving organizational
performance. Journal of Economics and Sustainable Development, 9(11), 29-36.
Amahalu, N. N, Abiahu, M. C., Obi, J. C., & Okika, E. C. (2017). Effect of human resources
accounting on the financial performance of quoted deposit money banks in Nigeria.
International Journal of Business Administration, 3(5), 40-53.
American Accounting Association ‘s (1973) Committee on human resource accounting, the
accounting review supplement to volume XLVIII.
Andrew, J. & Higson, H. (2008). Graduate Employability, 'Soft Skills' Versus 'Hard' Business Knowledge: A European Study. Higher Education in Europe, 33(4), 411-422.
Ashton, C. L. M. (2005). Managing talent for competitive advantage: Taking a systemic approach
to Talent Management. Strategic HR Review, 4, 28-31.
Babalola, J. B. (2003). Budget Preparation and Expenditure Control in Education, Basic Text in
Educational Planning. Awemark Industrial Printers, Ibadan.
Bankole, A. S. (2020). Investigating the effect of human resource cost on financial performance
of listed consumer goods firms in Nigeria. International Journal of Economics, Commerce andManagement, 8(5), 54-65.
Beida, P. O. (2024). Effect of human resources accounting (HRA) cost information on
investment decisions of listed assurance companies in Nigeria. International Journal
of Research and Scientific Innovation (IJRSI). ISSN 2321-2705
Bhovi, B. (2016.) A Study of Human Resources Accounting Models and Practices in Organization.
GE International Journal of Management Research, 4, 22-37.
De Hoyos, R. E. & Sarafidis, V. (2006) Testing for cross-sectional dependence inpanel-data models. The Stata Journal, 6(4), 482–496
Ekwutosi, E., & Okeke, I. V., (2024). Human resource planning and organizational productivity
in manufacturing firms in Anambra state, Nigeria. International Journal of Business &
Law Research 12(1), 105-121.
Enekwe, C. I., Udeh, S., & Akpan, F. E. (2022). Influence of human resources valuation on return
on assets of listed oil and gas companies in Nigeria. Journal of Accounting Information and Innovation, 8(6).
Etim, E. P. & Effiong, A. E. (2021). The impact of employee health and safety cost on
organizational performance: Evidence from selected food and beverage firms in Nigeria.
Journal of Management and Training for Industries, 1(1), 20-31.
Flamholtz, E. G. (2015). Human resource accounting today: human resource accounting practices-
an India experience Integral Review- A Journal of management. 5(2),120-129.
Gao, J., Greenberg, R., Wong-On-Wing, B. & Wong, P. (2015). Human resource accounting and
intellectual capital in China. Journal of Intellectual Capital, 16(3), 641-655.
Gujarati, D. N. (2004). Basic econometrics. McGraw-Hill Companies, New York.
Haitham, A. H. & Hassan, A. (2024). Exploring the link between human resource management
practices and financial performance: The moderating effect of organizational culture. Uncertain Supply Chain Management 12 (2024) 1885–1902.
Herath, S. K. & Naser, G. N. (2016). The impact of human resource management practices on
turnover, productivity, and corporate financial performance. Procedia Economics and
Finance, 35, 468-475.
Kankpang, A. K., Ogar-Abang, J. O., Oko J. O. & Animpuye (2024). Human resource cost and
profitability of oil and gas companies in Nigeria. Nigerian Journal of Management Sciences,25(1).
Khowanas, S.Q., Bayar, A. I. & Hassan, M. A. (2021). Human resources accounting and financial
performance. Journal of Humanities, 3(3), 5-14.
Kirfi, A. M. & Abdullahi, M. (2012). Human resource accounting practices in selected Nigerian
companies. Journal of Accounting and Taxation, 4(3), 43-51.
Korolo, A. S. & Korolo, E. O. (2024). Human resource cost and corporate financial
performance of listed deposit money banks in Nigeria. Fudma Journal of Accounting and Finance Research, 2(2).
Lambe I., Ameh, J. & Dinah, S. D. (2022). Effect of Human Resources Accounting on Financial
Performance of Listed Consumer Goods Firms in Nigeria
Lestari, F. D. & Setiany, E. (2023). The impact of governance, audit quality, and financial performance on increasing corporate value. International Journal for Multidisciplinary Research, 5(2), 1-17.
Maeso-Fernandez, F., Osbat, C. & Schnatz, B. (2004). Towards the estimation of equilibrium exchange rates for CEE acceding countries: Methodological issues and a panel cointegration perspective. Working paper Series No. 353 / M
Makkos, Z., Szamosi, L. T. & Szabó, Z. P. (2020). Human resource management and competitive
advantage in small and medium-sized enterprises. Journal of Competitiveness, 12(2), 22-37.
Manukaji, I. J., Osisioma B.C. & Okoye, P.V.C. (2019). Effect of Human Resource Development
on Performance of Quoted Companies in Nigeria. Journal of Accounting and Financial
Management, 5, 55-64.
Ndum & Oranefo (2021). Human Resource Cost and Financial Performance: A Study of Quoted
Brewery Firms in Nigeria. International Journal of Innovative Finance and Economics
Research,9,73-84
Nwauzor, R. & Longjohn, O. (2020). An investigation into human resources cost and
organizational performance in selected Nigerian deposit money banks. Journal of Economics and Behavioral Studies, 12(6), 121-130.
Ogunbiyi-Davies, B.A., Alao, M.E., Aremu, P.O. & Olalere, M.D. (2023). Human Resources
Accounting and Financial Performance of Some Food and Beverages in Nigeria. Open
Access Library Journal, 10, 1-17.
Okafor, U. I., OHachosim, C. I. & Oji, R. N. (2022). Expenditure in human resource and
financial performance of quoted manufacturing companies in Nigeria. East African
Scholars Publisher, Kenya Volume-5 | Issue-2 | Mar-2022.
Olaniyi, O. (2010). Rethinking Government Private Sector Relationship in Nigeria. Nigerian
Journal of Economics and Social Studies, 52, 109-134.
Onuka, A.O. & Ajayi, K. (2012). Effects of Manpower Development on Workers’ Job
Performance. European Journal of Educational Studies, 4, 423-433.
Onyekwelu, C.O., & Ironkwe, U. I. (2021). Human resources accounting and corporate financial
performance of quoted companies in Nigeria. Research Journal of Management Practice,
7(3), 20-39.
Oswald, O. O., John U. I. & Michael I. N. (2024). Human resource accounting and financial
performance of micro finance banks in Nigeria. Journal of Research in Humanities and SocialScience, 9(5)
Peters, G. T. & Ogaluzor, O. I. (2022). Assessing the effect of employee size and employee cost
on the financial performance of listed deposit money banks in Nigeria. African Journal of
Business and Economic Development, 2(11).
Prosvirkina, E. (2014). Human Resources Effectiveness in the Russian Banking Industry.
Humanity & Social Sciences Journal, 9, 11-17.
Roslender, R. (2004). Accounting for intellectual capital: Rethinking its theoretical
underpinnings. Measuring Business Excellence, 8, 38-45.
Reeta, A. (2015). Problems in adoption and application of human resource accounting: A
Survey. International Journal of Management Research, 3, 150-159.
Sajuyigbe, A. S. & Ikotun, A.O. (2020). Human Resource Accounting and Organizational
Performance: Empirical Investigation of Nigerian Banks. International Journal of Economics Research, 17(1).
Ubesie, M. C., Eneh, C. A. & Udeh, N. (2019). Effect of human capital expenditures on
corporate social responsibility of oil and gas firms in Nigeria. American Journal of
Theoretical and Applied Business, 5(4).
Worimegbe, T. M., Akinyede, O. M. & Ojedele, M. I. (2023). Human resource accounting and
profitability of deposit money banks in Nigeria. International Journal of Research Publicationand Reviews, 4(6), 3437-3444.
Published
2025-04-10
How to Cite
Yikarebogha, E., & Adesola, O. S. (2025). Human Resource Accounting and Financial Performance of Listed Service Firms in Nigeria. IJO -International Journal of Business Management ( E:ISSN 2811-2504 ) (P.ISSN: 2384-5961), 8(03), 21-54. Retrieved from https://ijojournals.com/index.php/bm/article/view/1037
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