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

Abstract

One major of the issues arising from the reform that require attention is the human resources management in the newly consolidated and merger bank. The study is an assessment of the effect of human resource management on financial performance of listed deposit money banks 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 out of 19 deposit money bank in Nigeria for 2011-2020 financial years. To carry out this objective, three method of panel regression estimation was used which is random effect by Hausman test which was analysed using E-views 10. The finding show that salaries and wages and employee development cost has positive significant effect on return of asset. The study concludes that that salaries and wages with employee development cost has a significantly positive effect on financial performance and does substantially improve the performance of listed deposit money banks in Nigeria. The study recommends that Management should not recruit more staff and should consider retaining only efficient staff, this implies that deposit money bank firms should downsize their number of staff and focus on training and re-training of the most efficient members of staff.