Omole I. I. & Adegbayibi A. T. (2016). Human Capital Accounting and Profitability of Listed Oil and Gas Companies in Nigeria. Akungba Journal of Economic Thought, 8(2), 1-12. Faculty of Social and Management Sciences, Adekunle Aj
Abstract
This study evaluated the effect of human capital accounting on profitability of oil and gas companies in Nigeria. These were with the view to providing information on how costs incurred on personnel could be identified, measured and disclosed on the statement of financial position of companies as an asset which is the key factor to the successful operation in manufacturing industry. The study made use of secondary data collected for the period 2005 – 2014. Fifteen oil and gas companies listed on the Nigerian Stock Exchange (NSE) were selected for the study based on availability of human capital accounting information in their Annual Reports. Data on variables such as human capital disclosure, profitability and value per share were collected from the Annual Reports of the sampled companies. Data collected were analyzed using tables, percentage, correlation and regression analysis. The result found that there is a significant relationship between human capital disclosure and profit before tax of the selected companies. The study also found that human capital disclosure (t =0.0000; p <0.05) had a significant positive impact on the companies ‘profitability.
It was concluded that human capital accounting enhanced financial performance of Nigerian oil and gas companies.
Keywords: Human Capital Accounting, Profitability, Statement of financial position