HUMAN CAPITAL EFFICIENCY AND PROFITABILITY OF QUOTED INTEGRATED OIL AND GAS COMPANIES IN NIGERIA

Tajudeen LAWAL; Daniya Adeiza ABDULAZEEZ; Mohammed Yabagi IBRAHIM

doi:10.24193/subbnegotia.2019.3.04

Authors

Tajudeen LAWAL Department of Accounting and Finance, Kwara state University, Malete Kwara State Nigeria. *Corresponding author: ltajudeen@yahoo.com, tajudeen.lawal@kwasu.edu.ng https://orcid.org/0000-0002-9883-4059
Daniya Adeiza ABDULAZEEZ Department of Entrepreneurship and Business Studies, Federal University of Technology, Minna, Niger State, Nigeria, e-mail daniyad3rd@yahoo.com
Mohammed Yabagi IBRAHIM Department of Accountancy, Federal Polytechnic, Bida, Niger State, Nigeria, e-mail: badamasi82@gmail.com

DOI:

https://doi.org/10.24193/subbnegotia.2019.3.04

Keywords:

human capital efficiency, return on assets, return on equity, value added intellectual coefficients.

Abstract

Human capital represents the engine that drives the entity and the foundation on which organizational success rests. This study examines the impact of human capital efficiency on profitability of five Integrated Oil and Gas companies in Nigeria between 2008 and 2017. This was examined by means of value added intellectual coefficient (VAIC) and it analyses how human capital efficiency affects the profitability of these firms measured by return on assets (ROA) and return on equity (ROE). Multiple regression technique was applied on data to draw inferences using STATA Version 13. The finding of the study reveals that Human capital efficiency has positive and significant impact on the ROA of the firms under study. Based on the findings of the study, it is therefore, recommended that integrated oil and Gas companies in Nigeria should continue to invest more on their employees in order to improve their performance. The study also recommends that Human Capital should be treated as the most valuable asset of integrated oil and Gas companies in Nigeria.

JEL classification: J24; G19

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