Human Resources Accounting Characteristics and Financial Performance of Oil and Gas Companies in Nigeria
Corresponding Author(s) : Charles Dennis Okorie
American Journal of Economics and Business Management,
Vol. 8 No. 5 (2025): May
Abstract
This study examined the relationship between Human Resource Accounting (HRA) characteristics and the financial performance of oil and gas companies in Nigeria. Specifically, the study focused on two key HRA components—Human Capital Cost (HCC) and Training and Development Expenses (TDEX)—and their impact on financial performance metrics, namely Net Profit Margin (NPM) and Return on Assets (ROA). The study employed secondary data extracted from the audited annual reports of six oil and gas companies listed on the Nigerian Exchange (NGX) for the period 2014–2023. PLS regression analysis was used to analyze the data. The findings reveal that human capital cost had a positive and significant effect on net profit margin, highlighting the importance of workforce investments such as recruitment, compensation, and retention programs in improving profitability. Similarly, training and development expenses demonstrate a positive and significant impact on net profit margin. However, the results also show that training and development expenses had a significant negative effect on return on assets, suggesting that the immediate financial costs of training may outweigh short-term efficiency gains in asset utilization. The study concluded that human resource accounting practices play a pivotal role in driving financial performance by optimizing workforce investments. It is recommended that oil and gas companies prioritize human capital investments, adopt performance-based incentives, and carefully balance short-term training costs with long-term organizational goals. Furthermore, the adoption of standardized HRA reporting frameworks is encouraged to enhance transparency and support stakeholder decision-making.
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- E. O. Abraham, O. D. Odobi, и R. O. Enwuchola, «Effect of human resources accounting on performance of listed deposit money bank in Nigeria», J. Account. Financ. Manag., т. 8, вып. 4, сс. 80–132, 2022.
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- V. Scafarto, F. Ricci, и F. Scafarto, «Intellectual capital and firm performance in the global agribusiness industry: The moderating role of human capital», J. Intellect. Cap., т. 17, вып. 3, сс. 530–552, 2016, doi: 10.1108/JIC-11-2015-0096.
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References
E. O. Abraham, O. D. Odobi, и R. O. Enwuchola, «Effect of human resources accounting on performance of listed deposit money bank in Nigeria», J. Account. Financ. Manag., т. 8, вып. 4, сс. 80–132, 2022.
A. Adegbayibi, O. Oyedokun, и R. Adedokun, «Human resources accounting and financial performance of listed deposit money banks in Nigeria», Res. J. Finance Account., т. 15, сс. 37–50, 2024, doi: 10.7176/RJFA/15-3-04.
S. F. Ali, «The study on the impact of human resource accounting on performance evaluation», Int. J. Multicult. Multireligious Underst., т. 7, вып. 1, сс. 117–132, 2020.
C. J. Collins, «Expanding the resource based view model of strategic human resource management», в Strategic Human Resource Management and Organizational Effectiveness, Routledge, 2022, сс. 107–134.
J. E. Delery и D. Roumpi, «Strategic human resource management, human capital and competitive advantage: is the field going in circles?», Hum. Resour. Manag. J., т. 27, вып. 1, сс. 1–21, 2017, doi: 10.1111/1748-8583.12137.
E. C. Ebe, P. E. Nwankwo, и O. I. Abuchi-Ani, «Human resources accounting and financial performance of listed manufacturing companies in Nigeria», FUW J. Account. Finance, т. 5, вып. 7, 2023, [Онлайн]. Доступно на: https://ssrn.com/abstract=4867811
D. Gillies, «Human capital theory in education», в Encyclopedia of Educational Philosophy and Theory, M. Peters, Ред., Springer Science + Business Media, 2015. doi: 10.1007/978-981-287-532-7_254-1.
J. Jacob и S. Farouq, «A review of human resource accounting and organizational performance», Int. J. Econ. Finance, т. 5, 2013, doi: 10.5539/ijef.v5n8p74.
S. Kumar и P. Awasthi, «Human resource accounting and organizational performance», Indian J. Account., т. 50, вып. 1, 2018.
S. Marginson, «Limitations of human capital theory», Stud. High. Educ., т. 44, вып. 2, сс. 287–301, 2019, doi: 10.1080/03075079.2017.1359823.
L. C. Micah, C. O. Ofurum, и J. U. Ihendinihu, «Firms financial performance and human resource accounting disclosure in Nigeria», Int. J. Bus. Manag., т. 7, вып. 14, с. 67, 2012, doi: 10.5539/ijbm.v7n14p67.
A. Momoh, B. O. Odion, и A. Oziegbe, «Human resource accounting and firm performance in Nigeria», Fuoye J. Account. Manag., т. 4, вып. 1, сс. 81–95, 2021.
J. Nemeth, «Human capital theory in the framework of organization theory», Strateg. Manag. Int. J. Strateg. Manag. Decis. Support Syst. Strateg. Manag., т. 23, вып. 3, 2017, [Онлайн]. Доступно на: https://www.smjournal.rs/index.php/home/article/view/133
S. M. Obeidat, A. A. Al Bakri, и S. Elbanna, «Leveraging “green” human resource practices to enable environmental and organizational performance: Evidence from the Qatari oil and gas industry», J. Bus. Ethics, т. 164, сс. 371–388, 2020, doi: 10.1007/s10551-018-4075-z.
B. N. Ogodor и A. R. Olaniyi, «Effect of human resource accounting on corporate performance of Nigerian listed consumer products firm (2013–2018)», ACU J. Soc. Manag. Sci., т. 3, вып. 1, сс. 212–225, 2022.
B. A. Ogunbiyi-Davies, M. E. Alao, P. O. Aremu, и M. D. Olalere, «Human resources accounting and financial performance of some food and beverages in Nigeria», Open Access Libr. J., т. 10, вып. 8, сс. 1–17, 2023.
P. O. Okpako, E. N. Atube, и O. H. Olufawoye, «Human Resource Accounting and Firm Performance», Glob. J. Commer. Manag. Perspect., т. 3, вып. 4, сс. 232–237, 2014.
C. O. Omodero и J. U. Ihendinihu, «Human resource accounting and financial performance of firms in Nigeria: evidence from selected listed firms on the Nigerian Stock Exchange», Int. J. Interdiscip. Res. Methods, т. 4, вып. 2, сс. 25–33, 2017.
O. H. Ovedje и E. G. Iserien, «An overview of human resource accounting and financial performance of selected manufacturing firms in Nigeria», Innov. J. Arts Soc. Sci., т. 3, вып. 3, сс. 106–124, 2021.
V. Scafarto, F. Ricci, и F. Scafarto, «Intellectual capital and firm performance in the global agribusiness industry: The moderating role of human capital», J. Intellect. Cap., т. 17, вып. 3, сс. 530–552, 2016, doi: 10.1108/JIC-11-2015-0096.
T. Strickland-Jackson, «Human resource accounting and firm performance: the effect of goodwill on firm performance», Doctoral dissertation, Trident University International, 2022.