Employees Cost and Financial Performance Nexus: Evidence from the Downstream Sector of Nigeria Industry
Abstract
Cost incurred in respect of a firm’s employees is enormous in the downstream sector of Nigeria economy. This study examined the relationship between employee costs and financial performance of quoted oil and gas marketing firms in Nigeria between 2016 and 2023 financial years. It adopted descriptive correlation research design. Employees cost, served as the independent variable and was proxied by other employees benefit cost; while financial performance represented the dependent variable measured in terms of revenue generation, net profit margin and net asset per share. A sample of about a sample representing about 67% of the population was drawn for analysis. The study used secondary data extracted from annual reports and accounts of the sampled firms and Nigeria Exchange Group official websites. Data was analyzed descriptively and inferentially by means of Excel 2016 Version. The findings showed that; insignificant but positive relationship exists between other employees benefit cost and revenue generation, net profit margin, and net asset per share in the industry within the study period. The study concluded that insignificant put positive relationship exists among employees cost and financial performance. Based on this, the study recommends that firms should focus on all aspects of their employees- training, education, health, safety and other motivational endeavors as these would enhance the overall financial performance of the firm.
Keywords
upstream sectorother employees benefit costsnet assets per sharerevenue generation.
References
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