Vol. 3 No. 8 (2023)
Articles

HUMAN CAPITAL INVESTMENT AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

OKERE Wisdom
Department of Accounting, Bells University of Technology Ota Ogun State
IGBA Joy
Department of Accounting, Bells University of Technology Ota Ogun State
RJMP-Vol. 3 Issue 8 cover

Published 2023-08-07

Keywords

  • Human resource accounting,
  • ROA,
  • Performance,
  • Investments,
  • Finance

How to Cite

OKERE Wisdom, & IGBA Joy. (2023). HUMAN CAPITAL INVESTMENT AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA. Research Journal of Management Practice, 3(8), 20-31. https://www.openjournals.ijaar.org/index.php/rjmp/article/view/107

How to Cite

OKERE Wisdom, & IGBA Joy. (2023). HUMAN CAPITAL INVESTMENT AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA. Research Journal of Management Practice, 3(8), 20-31. https://www.openjournals.ijaar.org/index.php/rjmp/article/view/107

Abstract

The study investigated the relationship between Human Capital Investment and Financial Performance of listed Manufacturing firms in Nigeria. The panel research design was used for the study. The data used were sourced from twenty (20) listed manufacturing firms in Nigeria, quoted on the Nigerian Stock Exchange from 2009-2018. The data extracted were analyzed using the panel data regression analysis, descriptive method and Hausman test was used to determine the most appropriate model. The study shows that there is a non-significant but positive relationship that exists between Human Capital Investment and Financial Performance of Manufacturing firms in Nigeria. Investing in Human Capital shows a significant negative relationship with financial performance of manufacturing firms in Nigeria. The study recommends that Companies should come up with some effective plans especially in investing the various aspects of human capital as not only does it direct firms to attain greater performance but also it ensures firms to remain competitive for their long term survival.  This can be achieved by stipulating that the understanding of firm performance in relation to human capitals should not be regarded as a phenomenon that only adds ‘more zeros’ in a firm’s profits; it should be seen as an entire workforce as the most ‘valuable assets’ in order for the organization to pave ways for greater achievements via innovativeness and creativity.

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