HUMAN CAPITAL AND PROFITABILITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Authors

  • Asmau Alex Zatiock Department of Business Administration Kaduna State University, Kaduna State, Nigeria.
  • Gloria Pam Dachomo Department of Accounting, Faculty of Management Sciences, Nnamdi Azikiwe University , Awka, Anambra State, Nigeria.
  • Joseph Benjamin Gwabin Department of Accounting, Faculty of Management Sciences, Nnamdi Azikiwe University , Awka, Anambra State, Nigeria.

Keywords:

Human Capital, Pension Plan, Training and Development, Salaries and Wages, Profitability.

Abstract

This study examined the effect of human capital on the financial performance of listed oil and gas companies in Nigeria. The study employed the ex-post facto research design which allows for historical facts to be used in gaining insight into the happenings of an entity under investigation. The population of the study comprises of all the eleven (11) oil and gas companies listed of the Nigerian Exchange Group as at 2022. A total of Nine (9) oil and gas companies were sampled using the purposive sampling technique. This technique is based on certain criteria set to ensure that only companies that meet the set criteria were sampled. Covering a period of fifteen years (2008 to 2022) panel data was extracted from the sampled oil and gas companies’ annual reports and accounts listed on the Nigerian Exchange Group. The data was analysed using multiple regression as a technique. The findings of the study revealed that, Pension Plan has positive and significant effect on the profitability of listed oil and gas companies in Nigeria. This was evidenced in the effect of pension plan on return on assets and return on equity which were significant at 1%. On the contrary, Training and development and salaries and wages revealed a positive but insignificant effect on return on equity. Based on the findings of the study, the study concludes that, employee welfare programs in not only fostering employee satisfaction and loyalty but also enhancing profitability. Management of oil and gas companies in Nigeria should aim for fairness and equity in compensation packages, recognizing their indirect influence on productivity and employee satisfaction. Thus, it was recommended that, Management should work closely with human resources to design employee benefit packages that align with both organizational goals and employee needs, thereby creating a motivated and dedicated workforce.

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Published

2024-10-05

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Articles