Cost of Staff Welfare and Financial Performance of Listed Pharmaceutical Manufacturing Firms in Nigeria

Abstract

This paper investigated the relationship between the cost of staff welfare and the financial performance of listed manufacturing pharmaceutical firms in Nigeria from the year 2011 to 2019. Cost of staff welfare was used as a dependent variable while growth in sales and return on assets were used as the independent variables. Secondary data was obtained from the published annual reports of the firms understudied. Data were analyzed using descriptive statistics including, mean, standard deviations and inferential statistical methods including correlation coefficient and Anova. Two hypotheses were tested with the aid of linear regression using SPSS pack version 22 as the tool for analysis. The research findings showed a significant positive correlation and statistically significant positive relationship between the cost of staff welfare and both growth in sales volume and return on assets respectively. Therefore, it was recommended that pharmaceutical firms should continue to increase the welfare needs of the staff as at when due since this contributes to the firm’s growth in sales volume and return on assets positively.