STAFF WELFARE COST AND RETURN ON EQUITY OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

The study was to determine the relationship between staff welfare costs and return or equity 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. However, the effect of staff welfare costs on financial performance metrics such as net profit margin and return on equity appears to be less pronounced, suggesting that other factors beyond humanq12` capital investment may play a more significant role in determining their outcomes. 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.