EFFECT OF HUMAN CAPITAL ON PERFORMANCE OF CONSUMER GOODS COMPANIES LISTED IN NIGERIA: EVIDENCE FROM NEW VARIABLES

This study examines the effect of human capital on the performance of consumer goods companies listed in Nigeria. The objectives of the study is to examine the effect of employee cost, employee shareholding and employee size on the performance of consumer goods companies listed in Nigeria for a period of seven (7) years from 2011 to 2017. This study used descriptive statistics, correlation analysis, panel regression and post diagnostics test to analyze the association and relationship between the variables. The regression result reveals that employee cost has significant effect on value added while employee shareholding and employee size has no significant effect on the value added of consumer goods companies listed in Nigeria for the specified period. The control variable firm size has significant effect on the performance of consumer goods companies listed in Nigeria. The study recommends that consumer goods companies should increase employee cost by way of salaries, wages, allowances, cost of training, pension cost, provision for gratuities and other benefits to increase performance by way of efficiency as this shows the ability of the companies to pay employees, providers of interest capital, government and provision for growth in asset.