Human Capital Expenditure and Firms’ Earnings of Listed Natural Resources Companies in Nigeria
Keywords:
Human Capital, Expenditure, Salary, Medical, Firm, EarningsAbstract
The rationale for recruiting employees in an organization is to contribute immensely to the company’s earnings. This study assessed the correlation between human capital expenditure and firms’ earnings of listed natural resource companies in Nigeria. Data gathered from published accounts of four listed companies were analyzed using descriptive and inferential statistical tools and regression analytical technique. Results showed that salary/allowances accounts for 24.9% variation in total earnings, medical/welfare 4.3%, training 4% with a combine effect of 22% which implies positive salary/allowances but insignificant relationship with total earnings, combination of salary, medical and training expenditures. It, therefore, concluded that organizations should spend more on medical, welfare and training of staff in order to contribute positively to the earnings of the organizations. It was recommended that employers of labour should enhance salaries, training of staff and provision of medical, and other welfare incentives to boost performance and in turn, increase earnings of the companies.
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