IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: doi.org/10.56201/ijebm.v10.no7.2024.pg265.285

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Human Resource Accounting and Financial Performance of Quoted Manufacturing Companies in Nigeria in Post International Financial Reporting Standards (IFRSs) Era

Enobong Patrick UMOH, Jeremiah Patrick EDET

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Abstract

This study was conducted to examine the influence of costs incurred in human resource on financial performance of listed manufacturing companies in Nigeria. This was based on the fact that the numerous costs incurred on human resource usually show the efforts of directors or managers in improving upon financial performance of listed companies. The ex-post facto research design was adopted because the study was quantitative and required secondary data. The population of this study was thirty-three (33) manufacturing companies drawn from two (2) sub-sectors such as consumer goods and industrial goods entities listed on the floor of Nigerian Exchange Group (NGX) as at 31 st December, 2022. Twenty-six (26) listed manufacturing entities were sampled for the study based on availability of data. Panel data were collected from the financial statements of manufacturing companies sampled for the study. The variables of this study were Human Resource Accounting (HRA) and Financial Performance. The dependent variable was financial performance represented by profit after tax (PAT) and the independent variable, regarded as costs of human resource accounting were measured by Employees’ Salaries and Wages (EWS) and Directors’ Remuneration (DRM). Firm Size (FSZ) was selected as a control variable. Data were analyzed using descriptive statistics and multiple linear regression statistical tools. Precisely, the fixed effect panel regression approach was employed in this study. From the analyses, it was observed that ESW and DRM had positive and significant influence on PAT of quoted manufacturing companies in Nigeria. In line with the findings, it was concluded that human resource accounting had significant influence on financial performance of quoted manufacturing companies in Nigeria. Amongst others, it was recommended that both employees’ salaries and wages and directors’ remuneration should be improved continuously for the purpose of providing them with foc

keywords:

Human Resource Accounting, Financial Performance and Quoted Manufacturing Companies.

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