Impact of Human Capital Accounting on the Financial Performance of Deposit Money Banks in Nigeria

Abstract

This study examined the impact of human capital accounting and financial performance of listed money deposit banks in Nigeria. Data was collected from annual report of selected money deposit banks in Nigeria; the data that were collected were tabulated and analyzed using multiple regression analysis. Findings from the study discovered that Salary and wages Cost has impact on the financial performance of listed money deposit banks in Nigeria, Training and Development Cost has no effect on the financial performance of listed money deposit banks in Nigeria also it was discovered that Long Term Employee benefits has impact on the financial performance of listed money deposit banks in Nigeria. It was recommended that Human Capital Efficiency enhances performance, management of firms should not also capitalize on the phenomenon that only increase in profitability but the holistic transformation of the valuable assets in a bid to pave way for corporate performance of firms, accounting standard setting bodies should accordingly review present accounting practices relating to human resource costs and provide standards for valuation and reporting such expenditures in financial statements to enhance information contents of such statement and firm value and Standard should be created for human resource identification and measurement. This will enhance valuation of human capital, ensure a higher degree of utility to stakeholders, uniformity in disclosures and will allow a reliable comparison of human capital values.