An empirical investigation into Human Resource Accounting as a catalyst for Enhancing Firm value

Abstract This study examines the impact of human resource accounting (HRA) on the firm value of quoted manufacturing firms in Nigeria, with corporate governance as a moderating variable. The research addresses the growing concerns of stakeholders and investors regarding firm value and the role of corporate governance in enhancing financial performance. Using secondary data from publicly listed manufacturing firms, the study employs panel data regression analysis to assess the effects of HRA components—salaries and wages, as well as training and development costs—on firm value, measured through with market capitalization.. The findings reveal a significant positive relationship between HRA and firm value, indicating that investments in human capital contribute to organizational growth and financial performance. Additionally, corporate governance, measured by board independence and audit committee independence, moderates this relationship, enhancing accountability and investor confidence. The study concludes that all independent variables have significant effect on market capitalization of quoted firms in Nigeria. Also, it was concluded that corporate governance has a controlling significant effect on market capitalization of quoted firms in Nigeria thereby achieving objective four and answered question four. It recommends Regulatory Agencies should ensure that all entities have a standard corporate governance practice and processes as well as adhering to global best practices on codes of corporate governance which when adhered to can assist in improving their firm value. KEYWORDS: Corporate governance, Firm value, Human resource accounting, Manufacturing firms, Stakeholders