SUSTAINABILITY, HUMAN CAPITAL ACCOUNTING DIMENSIONS, AND CORPORATE FINANCIAL PERFORMANCE IN NIGERIA

Thumbnail Image
Files
SUSTAINABILITY ICOMSS 2024 Conference Proceedings-81-92.pdf(638.3 KB)
Date
2025
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Management and Social Sciences
Abstract
There is often skepticism among investors and stakeholders regarding the authenticity of sustainability disclosures which may undermines the credibility of sustainability accounting and erode stakeholder trust in companies’ sustainability reports. Meanwhile, many organizations are resistant to adopting human capital accounting due to a traditional focus on financial metrics over non-financial ones, and this mindset creates a barrier to implementing effective human capital reporting, even when it is beneficial in the long run. Given this, this study examines the impact of sustainability and human capital accounting on the corporate financial performance of publicly listed companies in Nigeria. The study adopted an ex-post facto research design and the study analyzed panel data from manufacturing firms listed on the Nigerian Exchange Group, focusing on a sample of 38 firms over the period from 2015 to 2023 using judgmental sampling technique. Data were collected from the audited financial reports of the selected firms. Findings from fixed effects and random effects panel regression models indicate that both sustainability and human capital accounting significantly enhance corporate financial performance. Specifically, the Sustainability accounting positively influences return on assets (ROA) with coefficient of 0.015 (p < 0.01) for fixed effects and 0.013 (p < 0.01) for random effects, as well as return on equity (ROE) with coefficient of 0.019 (p < 0.01) and 0.018 (p < 0.01). Additionally, human capital accounting shows a positive relationship with ROA (0.028, p < 0.01) and ROE (0.034, p < 0.01. The study concluded that integrating these practices into corporate strategies is essential for enhancing profitability and long-term value creation.
Description
This study investigates the influence of sustainability accounting and human capital accounting on the financial performance of publicly listed companies in Nigeria. It addresses the growing skepticism among stakeholders about the credibility of sustainability disclosures and the reluctance of organizations to adopt human capital reporting due to their traditional focus on financial measures. Using an ex-post facto research design and panel data from selected manufacturing firms, the study reveals that both sustainability and human capital accounting positively affect corporate financial performance. The findings underscore the importance of integrating non-financial reporting practices into corporate strategies to enhance profitability, accountability, and long-term value creation. The study contributes to knowledge by providing empirical evidence from a developing economy on the strategic relevance of sustainability and human capital accounting, bridging the gap between financial and non-financial performance measures, and emphasizing their role in strengthening stakeholder trust and advancing sustainable corporate practices.
Keywords
Citation
Olumoh, Y. A., Uthman, F. Z., & Abdulsalam, S. T. (2025, October 24). Sustainability, human capital accounting dimensions, and corporate financial performance in Nigeria. In Proceedings of the 1st International Conference of Management and Social Sciences (ICOMSS 2024) (pp. 81–89). Faculty of Management and Social Sciences, Kwara State University, Malete. https://doi.org/10.5281/zenodo.17429221
URI
https://doi.org/10.5281/zenodo.17429221
 https://www.researchgate.net/publication/396842607_SUSTAINABILITY_HUMAN_CAPITAL_ACCOUNTING_DIMENSIONS_AND_CORPORATE_FINANCIAL_PERFORMANCE_IN_NIGERIA?_sg%5B0%5D=CXLGpjuXL1l1xid1-sozRtM4yjfJcrVVddPj7gC-e4uKFCS_i7RzfndTqR-OHUuyVWFDldsNpClrssZcuKOW0Yn160NJXlgEaDHndJ3o.ml5346ZDyAernY3CE5ONXZEIo1jlv6OwFr_N69ITqhCgCp6yxPFlS_2uDMcokAnaHaa2JMsjy0S-lUyeiLBcYA&_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6InByb2ZpbGUiLCJwYWdlIjoicHJvZmlsZSIsInBvc2l0aW9uIjoicGFnZUNvbnRlbnQifX0
 https://kwasuspace.kwasu.edu.ng/handle/123456789/6407
Collections
Scholarly Publication