Human Resource Accounting and Financial Performance of Listed Oil and Gas Firms in Nigeria: The Moderating Role Of Firm Size

Abstract

 The study investigates the moderating effect of firm size on the relationship between human resource accounting and the financial performance of listed oil and gas firms in Nigeria. The independent variable, human resource accounting is proxied by staff training and development costs, while the dependent variable, financial performance is proxied by return on assets. The study employed a correlational design, it utilized secondary data from a six-year period (2019–2024, sourced from the audited annual reports of six (6) sampled listed oil and gas firms in Nigeria. These firms were chosen out of population of nine (9) using purposive sampling technique on the basis of complete data availability. The data was analyzed using panels corrected standard errors regression. The results of the study showed a significant negative direct effect of staff training and development costs on financial performance. The analysis further revealed that firm size acts as a positive moderator; when firm size is considered, the combined interaction enhances financial performance. Consequently, the study recommends that managers in the oil and gas sector should reduce weighty spending on staff training and development in the short run, due to its detrimental impact on profitability. Instead, a strategic recommendation is to focus on growing firm. 

Keywords: financial performance, firm size, human resource accounting, staff training and development costs