Title: Employee benefit accounting and firm performance: evidence from listed banks in Nigeria
Authors: Hope Ifeoma Orjinta (PhD)., Okpalaukeje, R. U. C., Anyaegbunam, Josephine Nkolika
Volume: 9
Issue: 12
Pages: 154-167
Publication Date: 2025/12/28
Abstract:
: This study examined the effect of employee benefit accounting on the firm performance of listed banks in Nigeria from 2015 to 2024. The specific objective was to determine how employee salary, employee training cost, employee pension cost, and employee bonus influence earnings per share. An ex post facto research design was adopted, focusing on a population of thirteen listed banks, from which twelve were selected based on data availability. Secondary data were collected from the published annual reports and audited financial statements of the sampled banks. The hypotheses were tested using fixed effect regression after conducting the Hausman specification test. The findings showed that: employee salaries positively affect EPS and are significant (? = 3.292821, p = 0.000) at 5% significance level; employee training costs positively affect EPS and are significant (? = 0.225070, p = 0.0022) at 5% significance level; employee pension have a positive but non-significant effect on EPS (? = 0.257133, p = 0.0575) at 5% significance level; employee bonuses have a positive but non-significant effect on EPS (? = 0.044783, p = 0.6222) at 5% significance level. The study concluded that employee-related costs have a tangible impact on shareholder value, reinforcing the concept that human capital is a key driver of organizational success. The study recommended that bank management consistently review and adjust employee salaries to ensure they remain competitive and reflective of employee contributions, as higher salaries have a significant positive effect on earnings per share and can motivate staff to perform better, thereby enhancing overall profitability.