Human Capital Investment and Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

The study investigated the effect of human capital investment on the financial performance of listed deposit money banks in Nigeria. The specific objectives were to ascertain the effect of educational cost on return on assets, investigate the effect of staff remuneration cost on return on assets. The study collected secondary data from the annual reports of fifteen banks listed on the Nigeria Stock Exchange from 2015 to 2024. Eight of the banks were used as sample of this study using purposive sampling techniques. The method of data analysis was descriptive statistic, unit root test, diagnostics test and panel least square (PLS) with the help of E-view v10. Findings revealed that there is a positive and insignificant effect of educational cost on return on assets of listed deposit money banks in Nigeria, and there is positive and significant effect of staff remuneration cost on return on assets of listed deposit money banks in Nigeria. The study generally concluded that the effect of human capital investment on financial performance of listed deposit money banks in Nigeria is statistically significant for the period spanning from 2015 - 2025. The study recommended, among others, that; capitalizing human assets such as educational costs would positively impact on performance of banks. Therefore, its disclosure is recommended as intangible asset in the statement of financial position.