Human Resources Accounting and Financial Performance of Listed Health Care Companies in Nigeria

Rosemary UAGBALE-EKATAH,; Jane Onyinyechi OKPECHI; Barnabas Aboko ACHAKA

Rosemary UAGBALE-EKATAH Benson Idahosa University Benin, Edo State, Nigeria
Jane Onyinyechi OKPECHI Benson Idahosa University Benin, Edo State, Nigeria
Barnabas Aboko ACHAKA Barnabas & Co. (Chartered Accountants), Plateau State, Nigeria

Keywords: Return on asset (ROA), Return of equity (ROE), Turnover (TUR) and Human Resource Accounting Divulgence

Abstract

This study examines the relationship between Human Resource Accounting Divulgence (HRAD) and financial performance among listed healthcare firms in Nigeria. As human capital continues to gain prominence as a key driver of organizational success, understanding how its disclosure relates to firm performance has become a subject of growing academic interest. The study covers 11 healthcare firms listed on the Nigerian Exchange Group (NGX) over an 11-year period (2012–2022). Using a pooled panel regression approach, the research investigates the relationship between HRAD and financial performance indicators, viz; Return on Assets (ROA), Return on Equity (ROE), and Turnover (TUR), with leverage (LEV) serving as a control variable. The results indicate that HRAD maintains no statistically significant relationship with ROA, ROE, or turnover, suggesting that human resource disclosures are not yet embedded in performance-driven reporting within the healthcare sector. Conversely, leverage exhibited a positive and statistically significant relationship with HRAD, implying that more indebted firms may disclose HR information to signal transparency and responsible governance to stakeholders. These findings underscore the limited integration of human capital reporting in financial strategy among healthcare firms and highlight the need for regulatory intervention and standardized disclosure frameworks to enhance the relevance and comparability of HR information. This study offers context-specific insights and practical implications for improving corporate accountability and stakeholder engagement in emerging economies.