Human Resource Accounting and Financial Performance of Listed Oil and Gas Companies in Nigeria

Abstract

Funding employees’ training, making adequate provision for health and safety of workers, as well as paying a reasonable remuneration are vital investments that businesses can make. However, due to lack of proper personnel to oversee and manage these investments, oil and gas companies with enormous resources and newest technology found themselves in the middle of financial catastrophe. This study examined human resource accounting and financial performance of listed oil and gas companies in Nigeria. Ex post facto research design was adopted by the study, while secondary data was gathered from the annual report and accounts of seven (7) listed oil and gas companies in Nigeria from 2013 to 2024, covering a 12-year period. Descriptive statistics, correlations and multiple regressions were used to analyze the data collected. Using 0.05 level of statistical significance, the findings revealed that staff training cost (p-value = 0.1440) as well as health & safety cost (p-value = 0.3187) do not significantly affect return on equity, while employee remuneration (p-value = 0.008) significantly affects return on equity of oil listed and gas companies in Nigeria. The study concluded that, with the exception of employee remuneration, cost associated with training of staff and health & safety are not well managed since they have no significant effect on return on equity of the selected companies. The study recommended that management of listed oil and gas companies in Nigeria should make adequate provision for their employees through investing more in training as well as health facilities in order to increase productivity, which in turn improves the firms’ financial performance.