HUMAN CAPITAL ASSET AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study investigated the effect of human capital costs on financial performance of listed agricultural companies in Nigeria. The study employed an ex-post facto research design. The study population was five (5) listed agricultural companies on the Nigerian Exchange Group (NGX). A sample size of five (5) agricultural companies was used, using a census sampling technique covering ten years (2014 to 2023). The data used in this study were secondary, sourced from annual reports and statement of accounts of the five selected firms between 2014 and 2023. The method of data analysis was descriptive statistic, unit root test, diagnostics test and panel least square (PLS) with the help of E-view v12. The findings showed that the effect of staff training costs on return on assets of listed agricultural companies in Nigeria is not significant, the effect of health and safety costs on return on assets of listed agricultural companies in Nigeria is not significant, the effect of salaries and wages costs on return on assets of listed agricultural companies in Nigeria is not significant and finally, the effect of staff gratuity costs on return on assets of listed agricultural companies in Nigeria is not significant. The study generally concluded that the effect of human capital costs on financial performance of listed agricultural companies in Nigeria is statistically insignificant for the period spanning from 2014 – 2023. It was suggested amongst others that agricultural companies in Nigeria should continue to prioritize and enhance their staff training costs. The expenditure can serve as valuables tool for employee productive and motivation, which, in turn, can contribute to the financial performance of the companies.