Human Resources Accounting and Financial Performance of Listed Deposit Money Banks in Nigeria

The dwindling performance of listed deposit money banks caused by poor employee morale, lack of motivation and inadequate management of human resource has resulted to loss of key talent personnel in the banking sector has become worrisome to shareholders, regulators, academia and analysts. In lieu of this, the study examined the effect of human resource accounting on financial performance of listed deposit money banks in Nigeria. This study adopted ex-post facto research design. The study population is 13 listed deposit money banks on Nigeria Exchange Group. Census sampling technique was used to select the entire 13 listed deposit money banks form the sample size of the study. Data were collected from secondary source using annual reports of the selected firms from Factbooks published by the Nigerian Exchange Group from 2013 to 2022. Data collected include; employee remuneration cost, employee health and safety cost, employee retirement benefits and return on capital employed. The data were analysed using descriptive statistics and ordinary least square regression analysis.The result showed that employee remuneration cost to revenue has a negative and significant effect on returns on capital employed of DMBs in Nigeria. Also, employee and safety cost has a positive and significant effect on returns on capital employed (ROCE) of listed deposit money banks in Nigeria. Employee retirement benefit has a negative and significant effect on returns on capital employed (ROCE) of deposit money banks in Nigeria.The study concluded that human resources have negative and significance effect on the financial performance of listed deposit money banks in Nigeria. The study therefore recommended that management of deposit money banks and labour unions should ensure there is appropriate accountable structure to improve the commitment of the companies to human resource management and the ways of boosting the financial performance of firms. Also, management of deposit money banks should substantially invest in building the capacities and abilities of their employee through training, seminar, education as this will have a positive impact of the financial performance of the firm and improve their performance. Management should ensure that the cost committed to employee emoluments and welfare is not above what the company revenue could absorb conveniently without negatively affecting the investors returns. Keywords: employee remuneration cost, employee and safety cost, employee retirement benefit and returns on capital employed. DOI: 10.7176/RJFA/15-3-04 Publication date:March 31st 202