Effect of Human Capital Resource on Financial Performance of Listed Oil and Gas Firms in Nigeria

Abstract

Despite the huge amount of funds invested on human capital, the traditional accounting practice failed to report these costs appropriately in the statement of the financial position of the organization as in the case of other physical assets. The study is an assessment of the effect of training and development cost on financial performance of listed oil and gas firms in Nigeria. The expo-facto research design was adopted with reliance on secondary data from annual report of listed firms. The purposive sampling technique was employed in selecting the 12 firms out of 14 oil and gas firms in Nigeria for 2011-2021 financial year. To carry out this objective three method of panel regression estimation was used which is fixed effect by Hausman test which was analyzed using E-views 10. The finding show that training and development cost has positive significant effect on return of asset. The study concludes that training and development cost has a significant positive effect on financial performance and does substantially reduce the inefficiencies in productivity of listed oil and gas companies in Nigeria. The study recommends that Individuals, partnership business, shareholders and government who employ the services of human resources in Nigeria should ensure that the human capital groups have the right competence and experience and that can be brought to bear positively on the organization.