HUMAN CAPITAL EXPENDITURE AND FINANCIAL PERFORMANCE OF CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

The study investigated the relationship between human capital expenditure and financial performance of consumer goods companies in Nigeria. The study was guided by ten objectives, ten research questions and ten hypotheses. Human capital theory, equity theory, and resource-based theory informed the study. The philosophical inclination of this study is the philosophy of positivism.

The correlational research design was adopted for the study. The population of the study consisted of 20 consumer goods companies in Nigeria, listed on the Nigerian Stock Exchange, and the 20 consumer goods companies constituted the sample size of the study. The data used for the study was sourced from the Nigerian Exchange Group for the period of 11 years (2013-2023) covering the predictor and measures of the study. Pearson Product Moment Correlation (PPMC) and Linear Regression Analyses were used to answer the research questions while the hypotheses were tested using Ordinary Least Square (OLS) and Moderated Regression Analysis were used to test the hypotheses, at a 0.05 level of significance. Findings from this study showed that the extent of relationship between training and development expenditure and return on capital employed in  consumer goods companies in Nigeria is weak, while the hypothesis showed that there is no significant relationship between training and development expenditure and return on capital employed in consumer goods companies in Nigeria. Also, the extent of the relationship between  training and development expenditure and earnings yield in consumer goods companies in Nigeria  is strong, while the hypothesis showed that there is significant relationship between training and  development expenditure and earning yields in consumer goods companies in Nigeria, among  others. The study recommended among others that the management of consumer goods companies  in Nigeria should invest in the acquisition of technical capacity skill by their employee, which has  the potentials of improving the return on capital employed by the company and the management  of consumer goods companies in Nigeria should create policies that encourage the training and  development of employee, as there is evidence that it enhances earning yield of the company.