HUMAN CAPITAL COSTS AND NET PROFIT MARGIN OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

The study was to determine the relationship between human capital costs 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 human capital costs showed positive and significant relationship with net profit margin of listed industrial goods manufacturing firms in Nigeria. The study concluded that human capital costs will have a significant positive relationship on net profit margin, indicating that investments in enhancing employee skills and capabilities will lead to improved asset utilization efficiency. It was recommended that firms should prioritize strategic investments in human capital development programs to enhance skills, knowledge, and capabilities, thereby potentially improving operational efficiency, productivity, and ultimately, net profit margin.