The Nexus Between Human Resource Accounting and Financial Performance: Evidence from Quoted Insurance Companies in Nigeria

This study empirically examined the nexus between human resource accounting and the financial performance of listed insurance companies in Nigeria. The research adopted an ex-post facto and descriptive design, relying on historical financial data drawn from annual reports of ten (10) selected insurance companies quoted on the Nigerian Exchange Group for the period 2020-2024. A judgmental sampling technique was employed, while both descriptive and inferential statistics were used to analyze the data. Specifically, the study utilized panel regression analysis, supported by pre- and post-estimation tests such as unit root, normality, and stability checks, with computations carried out using E-Views 10 software. The findings reveal that staff training and development costs have a significant positive effect on the net profit margin of Nigerian insurance firms, highlighting the critical role of capacity building in enhancing profitability. Conversely, gratuity payments exert a significant negative effect on profitability, underscoring the financial burden of long-term employee benefit obligations on insurers. Salaries and wages, though negatively related to profitability, showed no statistically significant effect, suggesting that wage bills alone do not determine financial outcomes. The study concludes that human resource accounting plays a vital role in strengthening the performance of insurance firms in Nigeria, where competitiveness largely depends on the quality and productivity of human capital. It recommends that insurance companies intensify investment in staff training to enhance efficiency and innovation, maintain fair compensation practices to promote retention, and adopt prudent strategies for managing gratuity obligations to ensure sustainable profitability.