Global Journal of Human Resource Management (GJHRM)

EA Journals

Banks’

The Effect of Human Capital Development on Financial Performance of Banks in Nigeria (Published)

The study examined the effect of human capital development on financial performance of banks in Nigeria.  The specific objective was to determine the extent to which the banks PDW affects the PAT, TR and the NA. The research design employed was a cross sectional survey design.  Time series data which comprise PDW, PAT, TR, and NA of quoted commercial banks in the NSE were the secondary data used.  Statistical tools of Multiple Linear Regression and student t-test were used for the analysis. The regression model was estimated through the use of statistical package for social sciences (SPSS).  The three null hypotheses used in this study were tested at 5% level of significance.  The result obtained showed a no effect on PAT and no effect on TR, but a negative effect on NA. The p-value for all the independent variables are not significant.  The F-test showed a good fit for the model. The study therefore concludes that banks have not invested adequately on human capital development that is why the effect on financial performance is not significant.  Therefore commercial banks in Nigeria are advised to give more attention to human capital development by way of training and adequate welfare to enhance their productivity.

Keywords: Banks’, Human Capital Development, financial performance and Nigeria, net asset, total revenue

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