Human Resource Accounting and Financial Performance: Evidence from Listed Petroleum Marketing Companies in Nigeria

Abstract

This study assess the nexus between human resource accounting and financial performance of listed petroleum marketing companies in Nigeria over the period 2014 – 2023. The human resource accounting proxy by staff remuneration and staff training cost and financial performance which is proxy by return on asset. Firm size was used as a control variable. The sample of the study covers six (6) companies in the downstream oil and gas sector. The research adopts an ex facto research design and secondary data were collected from the company’s annual reports. Descriptive statistics, correlation, and regression analyses were carried out with the aid of E-views. The result reveals that staff remuneration and staff training cost have a significant and insignificant relationship with financial performance of listed petroleum marketing companies in Nigeria respectively. The study concludes that staff remuneration has a positive relationship with financial performance while staff training cost have a negative relationship with financial performance of listed petroleum marketing companies in Nigeria. The study recommends that staff remuneration should be maintained or increased so that staff can continue putting in their best in their job to achieve high performance and cost of staff training should be improved so that staff can acquire the necessary and appropriate skills and the knowledge to carry out their work thereby increasing performance to higher heights.