Impact of Human Resource Management on Financial Performance of Deposit Money Banks in Nigeria

Abstract

This research effort is based on analysis on the impact of human resource management on financial performance of deposit money banks. The major objective of the study is to examine the impact of human capital development on financial performance of deposit money banks. A model was constructed to incorporate return on asset as the dependent variable, government expenditure on education and government expenditure on health, as the independent variables and tested using the ordinary least-squares (OLS) technique. The empirical result shows that capital government expenditure, recurrent government expenditure. a positive relationship between government expenditure on education (0.004500), on the return on asset whereas negative relationship exist between government expenditure on health (-0.002410) on return on asset. It was also revealed that the rate at which the independent variables explain what happens on the dependents is 61.0324% which is believed by the researcher to be relatively high. The researcher recommends that government should adopt the UNESCO recommendation of 26% education budgetary allocation rather than the current 7.02% allocated to education sector in Nigeria, this can be achieved through increase in budgetary allocation to education sector. This will serve as boost to education sector and revive the dilapidating nature of our academic sector.