Title:
EFFECT OF HUMAN RESOURCE COST ON PROFITABILITY OF QUOTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Authors:
Nestor Ndubuisi Amahalu, Chijioke Louis Okudo, Obumneme Obiora Okafor and Chinwe Miracle Onyeka

Abstract:
This study ascertained the effect of Proper Disclosure of Human Resource Costs on the Profitability of quoted industrial goods firms in Nigeria from 2008-2022. Specifically, this study aimed to ascertain the effect of staff cost on return on assets, return on capital employed, and net profit margin. This study was anchored on knowledge-based theory. A purposive sampling technique was adopted to select nine (9) quoted industrial goods firms from a population of thirteen (13) quoted industrial goods firms in Nigeria. This study utilized secondary data from sample firms' financial statements, hence, the ex-post facto research design was employed. Pearson coefficient correlation was employed to determine the nature and strength of the relationship between the dependent and independent variables of the study, while, simple linear regression analysis was adopted to determine the extent and level of significance at which human disclosure affects profitability with the aid of E-View 10.0 statistical software. The study found that staff cost has a significant positive effect on return on assets, return on capital employed, and net profit margin at a 5% level of significance respectively. It was recommended inter alia that industrial goods firms in Nigeria should make an effort to increase their commitment to staff development such as education and training in order to improve their profitability.

Keywords:
Staff Cost, Net Profit Margin, Return on Capital Employed, Return on Assets