Human Capital Cost and Financial Reporting Quality of Money Deposit Banks in Nigeria

Abstract

This study investigated the influence of Human Capital cost on financial reporting quality of Money Deposit Banks in Nigeria. The specific objective of the study was to investigate the extent to which Human capital cost affect Financial reporting quality of money deposit Banks in Nigeria. A total of Ten (10) Banks were selected for the study, time series data used were obtained from annual report of the deposit money banks from 2006-2019. Accrual model was used to compute the proxy for financial reporting quality, while Human Capital cost is proxy by the Salaries and Benefit of Employee in the year which is taken from annual report of the selected money deposit Banks. The ordinary least square techniques were used to analyse the data. The result indicated a positive impact on financial reporting quality. The study therefore concludes that Human capital costs are significant to influence financial reporting quality in the posture. The study recommended putting more resources in the areas of Human capital cost will increase the quality of financial reporting in the Banking Industry in Nigeria.