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

Abstract

The study was to determine the relationship between staff welfare cost and return on 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. The study concluded that staff welfare costs on financial performance metrics such as net profit margin. It was recommended that firms should prioritize strategic investments in staff welfare cost programs to enhance skills, knowledge, and capabilities, thereby potentially improving operational efficiency, productivity, and ultimately.