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Research Article Open access CC BY 4.0

The Effect of Amortizing the Value of Human Resource Cost on the Financial Performance of Nigeria Banks

Odewusi Oyetola, Olalere Mayowa David

Asian Journal of Economics, Business and Accounting · pp. 120–134 · Published 7 May 2024

10.9734/ajeba/2024/v24i61347

Abstract

This study looked into how Nigerian banks' financial performance was affected by depreciating their human resource costs. The research design used in this study is the survey research design. Reliability and validity of the data sources were established by the questionnaire. The data were analyzed using the descriptive and Regression statistical technique. It was discovered that human resources had a major influence (Adj R2 = 0. 858, F (9.064)). The findings showed that financial performance benefited from the expense of human resource training. FP was significantly impacted by HRTC (β = 0.3.86, t = - 1.586, p< 0.05), and FP was significantly impacted by HRAC (β = 0.911, t = 4.143, p<0.05). According to the study, using acquisition costs for human resources has a favorable effect on an organization's financial performance. The management boards of the banks under examination are advised by the study to work toward implementing the policy of classifying human resource costs as assets. To guarantee that their employees have the technical know-how and understanding to perform their tasks more efficiently, banks must plan regular training sessions for their HR department. Since the organization's most significant asset is its human resources, the Central Bank of Nigeria ought to ensure that the funds allocated to them are appropriately declared and acknowledged as assets in bank annual reports. By doing this, the genuine financial performance of the institutions will be more accurately depicted.

Financial performance human resource cost human resource acquisition cost

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Cited by 3

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Korolo Emmnuel Omolaye · African Journal of Accounting and Financial Research · 2025

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