HUMAN RESOURCE DISCLOSURES AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Human resource is now widely accepted as one of the most important assets possessed by organizations. However, obstacles encountered in the recognition of human resource as an asset rests largely on its characteristic, quantification in monetary terms and the mode of reporting. Therefore, the objective of this study is to examine the relationship between Human Resources Disclosures and the Financial Performance of Deposit Money Banks in Nigeria. Five years financial data (2007 – 2011) of twenty two banks in Nigeria as was listed on the Nigeria Stock Exchange (NSE), of which twelve were selected using the simple random sampling technique. The collected data was analyzed with the aid of the SPSS statistical package (Version 16.0). Two models were examined and both showed a strong and positive relationship between Human Resource Disclosure Index (HRDI) and Return on Assets (ROA) on the one hand and Return on Equity (ROE) on the other hand with an F-ratio of 9.431 and 14.681 being significant at both 5% and 1% confidence level respectively. The study concludes that human resource information is an important factor for management decision making, as there is growing evidence of interest and demand amongst stakeholders for information about firm relationship human capital. Therefore, the study recommended that standards should be provided for the identification and measurement of human resource disclosures in Nigerian banks. Similarly, banks in addition to preparing its traditional financial statements should be encouraged to prepare a separate statement pertaining to its human capital assets.