HUMAN CAPITAL ACCOUNTING AND RETURN ON INVESTMENT OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This research investigated the relationship between human capital accounting and return on investment of quoted deposit money banks in Nigeria during the period 2012 to 2022. Human capital accounting was employed as the independent variable, whereas return on investment was used as the dependent variable of study. Recruitment cost, training and development cost as well as salaries and wages cost comprised the proxies for the independent variable while return on investment was treated as a mono variable. This current research employed secondary data collected from published annual financial statements of quoted deposited money banks between 2012 to 2022. The panel data were analysed by the use of E-view I software. The results showed positive and significant relationship between training and development, recruitment cost and return on investment, while salaries and wages had insignificant relationship with return on investment. Based on the study findings it was recommended that Money deposit banks in Nigeria should consider the capitalization of human capital cost- (Recruitment Cost, Training and Development Cost & Salaries and Wages Cost) as strategic investment options, review the present accounting information that reflects training and development costs such as recruitment, salary and wages, internal and external staff training and not to associate the low or high return on investment to the expenditures on salaries and wages.