EFFECT OF HUMAN CAPITAL ACCOUNTING ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Continued call for capitalization of human resource and the lingering debate on effect of human capital on organizational performance coupled with persistence labour crisis in both private and public establishments have undermined the role of employees in organization. This study, therefore, scrutinize effect of human capital accounting on financial performance of deposit money banks in Nigeria. The specific objectives were to examine the effect of human capital on return on assets, return on equity and profit margin of listed deposit money banks in Nigeria. The study adopted human capital theory and stakeholder theory as its fundamental theories. Ex-post facto research design and positivist research philosophy employed in this study. Population of the study embraces all money deposit banks listed on the Nigerian Stock Exchange (NSE) as at 31^st March, 2021. This stood at 19 money deposit banks (8 with international authorization and 11 with National authorization). The study therefore adopts the banks with international authorization as the sample size. The study therefore employ secondary data collected from the published annual reports of 8 deposit money banks, covering a period of ten (10) years from 2011 to 2020. The study employs multiple regression technique as the procedure for data analysis with aid of SPSS. The findings from the study were that: human capital has a significant effect on return on Assets, return on equity and profit margin of listed money deposit banks in Nigeria. Thus, the study recommends among others that human capital should be capitalized