HUMAN CAPITAL COST AND FINANCIAL PERFORMANCE: A MODERATING ROLE OF TECHNOLOGY OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

The study was to determine the relationship between human capital costs and financial performance: A moderating role of technology 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 Staff welfare cost showed negative and insignificant relationship with return on equity; and technology (moderating variable) showed positive and significant relationship with human capital cost and financial performance of listed industrial goods manufacturing firms in Nigeria. It was recommended that firms should prioritize strategic investments in employee training and development programs to enhance skills, knowledge, and capabilities, thereby potentially improving operational efficiency, productivity, and ultimately, net profit margin. Firms should strategically allocate resources towards enhancing employee training and development programs.