Human Capital and Organization Performance: A Case of Deposit Money Banks in Nigeria

Authors

  • Festus Olumide Fawehinmi
  • Albert Ilugbemi

Keywords:

Human Capital; Organizational Performance; Deposit Money Banks

Abstract

The study investigates the impact of human capital on the performance of the deposit money
banks in Nigeria from 2007 to 2019. Previous related empirical studies have made use of primary data
approach which might be highly subjective. The study used expenditures on human resources to proxy
human capital while profit after tax is used to proxy performance. The sample covered ten banks which
include the five first-tier lenders that hold almost 80% of the entire banking sector asset in Nigeria.
Panel data is applied as estimating technique. The result shows that human capital does not have
significant positive impact on performance of the banks. However, total asset of the banks remains the
most important determinants of performance of the banks. This is an indication that expenditure on
human capital reduces the profit of the banks as against the conclusions of some researchers that used
primary data. More so, most of the operations of the banks are now capital intensive. The approach
used in the study has unraveled the reason behind the incessant staff turnover experienced in the
Nigerian banking sector

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Unpublished master’s thesis, University of Malaysia.

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Published

2020-05-26

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Articles