AN EMPIRICAL INVESTIGATION INTO THE EFFECT OF HUMAN RESOURCES ACCOUNTING ON FINANCIAL PERFORMANCE: EVIDENCE FROM QUOTED OIL AND GAS COMPANIES IN NIGERIA

With the growing recognition of human capital as a strategic asset, there is increasing concern about the extent to which investments in human resources translate into improved financial outcomes, particularly within the oil and gas sector. Despite this importance, empirical evidence on the relationship between human resource accounting (HRA) practices and financial performance in Nigeria remains limited and inconclusive. This study examined the effect of human resources accounting (HRA) practices on the financial performance of quoted oil and gas companies in Nigeria. The study adopted an ex post facto research design and relied on secondary data sourced from the published annual reports and accounts of selected quoted oil and gas companies listed on the Nigerian Exchange Group for the period 2015–2024. HRA practices are proxied by recruitment cost, training and development cost, and employee welfare cost, while financial performance is measured using Earnings per Share (EPS) and Net Profit. The data were analysed using descriptive statistics, correlation analysis, and panel data regression techniques, including fixed and random effects models. Relevant post-estimation and diagnostic tests were conducted to ensure the robustness and reliability of the results. The findings revealed that HRA practices have a significant effect on the financial performance of quoted oil and gas companies in Nigeria. The study concluded that effective investment in human resources enhances firm profitability and market valuation. It therefore recommended that there should be a budgetary allocation for training and development programs, oil and gas companies strengthen human capital investment strategies and adopt improved human resources accounting and disclosure practices to enhance financial performance and stakeholder confidence.