ABSTRACT

The study evaluated effect of human resource accounting on financial performance of listed firms in Nigeria and adopted ex post facto research design. It extracted secondary data from annual reports of Nigeria Breweries pic and Guinness Nigeria pic for the period 2009 to 2018. Personnel emoluments was employed as proxy for human resource accounting while financial performance was represented by return on assets, return on equity and profit after tax. The augmented Dickey-Fuller unit root test indicated that all the variables are stationary at 5% level of significance and integrated at level. The study therefore employed the ordinary least squares based simple regression analysis to estimate the relationship of the variables. The results indicated that there is positive significant relationship between return on assets and personnel emoluments and there is significant effect of human resource accounting on return on assets of listed firms in Nigeria. It gave evidence that there is negative significant relationship between return on equity and personnel emoluments of listed firms and that human resource accounting has significant effect on return on equity of listed firms in Nigeria. There is further proof that human resource accounting has negative significant relationship with profit after tax of listed firms and that there is significant effect of human resource accounting on profit after tax oflisted firms in Nigeria. The study concluded that human resource accounting has significant effect of financial performance of listed firms in Nigeria and recommended that management of listed firms should train staff to be compliant on the use of assets so as to enhance efficiency in operations, management should ensure that emoluments are based on productivity to boost return on equity and management of listed firms should train staff to achieve optimal results in operations to increase profits.