HUMAN RESOURCES ACCOUNTING AND FIRM PERFORMANCE

This study examined the impact of Human Resource Accounting (HRA) on firm performance (FP) among selected non-financial firms listed on the Nigerian Exchange Group (NGX). The study focused on three key components of HRA training costs, recruitment and selection costs, and staff welfare and development investments to determine the extent to which human resource–related expenditures contribute to organizational performance. Secondary data covering 150 firm-year observations were
extracted from annual reports and financial statements and analyzed using the Ordinary Least Squares (OLS) regression technique. The findings revealed that training costs have a positive and statistically significant effect on firm performance, indicating that investment in employee skills and capacity development enhances organizational outcomes. Recruitment and selection costs, although positively related to firm performance, exhibited an insignificant effect, suggesting that the benefits of recruitment expenditures may not immediately translate into improved performance. Staff welfare and development investments were found to have a positive and significant relationship with firm performance, demonstrating that employee-focused welfare initiatives and developmental incentives contribute meaningfully to enhanced productivity and organizational growth.