HUMAN RESOURCES ACCOUNTING AND FINANCIAL PERFORMANCE OF BANKS IN NIGERIA

ABSTRACT This study examines Human Resources Accounting and Financial Performance of Banks in Nigeria. The main objectives of this study is to examine and investigate the impact of human resources accounting on the performance of banks in Nigeria. The specific objectives are to assess the impact of Human Resources Accounting (HRA) on the profitability of banks in Nigeria and to examine the relationship between Human Resources Accounting and the operational efficiency of banks in Nigeria. The study adopts statistic research design, the research design structuring of investigation aimed at identifying variables and their relationship. The total population for this study consists of the forty eight (48) Micro Finance banks that are spread across the state, in Ogun state and the sample size of this study is (320). The tools used in analyzing the data include; tables, frequency and simple percentage method and chi-square method and the hypothesis and variable for this study is operationalized using simple linear regression model. The findings of the study revealed that Human Resource Accounting (HRA) significantly contributes to the profitability of banks in Nigeria. Banks that recognize and report investments in human capital tend to experience higher returns due to improved employee productivity and better strategic decision-making. Based on the findings, it was concluded that Human Resource Accounting (HRA) has a significant and positive influence on the financial performance of banks in Nigeria. The study recommended that banks in Nigeria should formally adopt and integrate HRA into their financial reporting systems. This can be done by developing standardized frameworks and guidelines for valuing, recording, and disclosing human capital information.