Effect of human resource accounting and corporate reporting of listed firms in Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i3.390.30-41Keywords:
Human Resource Accounting, Corporate Reporting, Employee Training, Compensation and Welfare Cost, Financial Reporting Quality, NigeriaAbstract
Purpose: Concerns over the exclusion of human resource investments from conventional financial reporting standards have been raised by the growing importance of human capital in contemporary organizations. This study specifically looked at how corporate organizations handle the disclosure of human resources accounting in corporate reporting of listed firms in Nigerian.
Methodology: The annual reports of fifty (50) carefully selected firms listed on the Nigerian Exchange Group (NGX) provided secondary data for the study, which employed an ex post facto research design. The collected data was examined using Descriptive statistics, Pearson correlation, Variance inflation factor, and Multiple regression analysis.
Results: The findings showed that corporate reporting is positively and significantly impacted by the disclosure of employee recruitment and selection cost. Furthermore, the findings demonstrated that the transparency, dependability, and applicability of corporate reports are greatly enhanced by the disclosure of employee compensation and welfare costs, with the greatest benefit to corporate reporting coming from the disclosure of employee training and development costs.
Conclusion: The study concludes that the disclosure and investments in human resources significantly improve company reporting by promoting more accountability, transparency, and the decision-usefulness of financial data.
Recommendations: The study suggests that expanding the disclosure of human resource accounting data in corporate reporting and establishing comprehensive reporting standards for investments in human capital are crucial for organizational success. These steps would improve corporate reporting quality and provide stakeholders with a more accurate assessment of the organization's value and long-term sustainability.
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