TRAINING AND DEVELOPMENT COST AND NET PROFIT MARGIN OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

The study was to determine the relationship between training and development cost and net profit margin of listed industrial goods manufacturing firms in Nigeria. The theory underpinning this study is Human capital theory. Ex-post facto research design was considered suitable for the study. The population of this study was thirteen (13) industrial goods manufacturing companies listed on Nigeria Exchange Group. Sample size of ten (10) firms representing about 76% (percent) of listed industrial goods firms in Nigeria was obtained. The non-probability sampling technique was adopted in this study. The findings of this study showed that; Employee training  and development costs showed positive and significant relationship with net profit margin. The study concluded that employee training and development costs have a significant positive relationship on return on assets, indicating that investments in enhancing employee skills and capabilities lead to improved asset utilization efficiency. Firms should strategically allocate resources towards enhancing employee training and development programs.