Human capital cost and financial performance: Evidence from listed agricultural companies in Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i3.394.60-72Keywords:
Earnings per share, Financial performance, Health and safety costs, Human capital costs, Listed agricultural companies, Staff remuneration costs, Staff training costsAbstract
Purpose: This study examined the effect of human capital cost on the financial performance of listed agricultural companies in Nigeria within the context of the evolving digital economy. Specifically, it investigated the influence of staff remuneration cost, staff training cost, and health and safety cost on earnings per share (EPS).
Methodology: An ex post facto research design was adopted using secondary data obtained from the audited annual reports of five agricultural companies listed on the Nigerian Exchange Group (NGX) for the period 2009-2024. A census sampling technique was employed because all firms with complete financial data were included. Panel data were analyzed using the Estimated Generalized Least Squares (EGLS) technique to account for panel-specific heterogeneity.
Results and Conclusion: The findings revealed that staff remuneration cost has a positive and statistically significant effect on earnings per share, indicating that competitive employee compensation enhances financial performance. In contrast, staff training cost and health and safety cost exhibited positive but statistically insignificant effects on earnings per share. The study concludes that employee remuneration remains a key driver of financial performance. At the same time, the benefits of training and health and safety investments may require longer periods and stronger alignment with digital transformation initiatives to generate significant financial returns.
Implications of Findings: The study recommends that agricultural firms sustain competitive remuneration policies to attract and retain digitally competent employees, redesign training programmes to strengthen digital capabilities, and integrate occupational health and safety practices with emerging digital technologies to improve workforce productivity and long-term organizational competitiveness.
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