HUMAN CAPITAL ACCOUNTING AND PERFORMANCE OF NIGERIAN BREWERY PLC.

Abstract

The study examines the effect of human capital accounting on the performance of Nigerian Brewery PLC for the period between 2006 to 2020. Human capital accounting (Independent variable) was proxied with training and development cost, health and safety cost and Gross cost while performance (dependent variable) was process with Net profit. The data for the variables were obtained from the company annual financial statement and Nigerian Stock Exchange report, ordinary least squares (multiple regression) regression technique was used to analysis the data with the use of Statistical Package for social science (SPSS). The result of the analysis shows that training and development have positive and significant relationship with Net profit. In the case of effect of health and safety on net profit, the result also shows a positive and insignificant relationship. The probability value of training and development is less than 5% significant value. But in the case of health and safety on net profit, the probability level was more than 5%. In the case of effect on Gross cost on net profit the result shows a negative effect on net profit since the t- statistical value shows a negative value of -2.816. In conclusion, training and development together with health and safety have positive effects on net profit, but gross cost have negative effect. Therefore, I recommend that management should priortise training and development together with health and safety. Management should be mindful of excessive spending on Gross cost as increase on it will have negative effect on net profit.