Human Capital Potency and Earning Potentials of Firms in Nigeria

  • Authors

    • Kingsley Nze Ashibogwu Department of Accounting, Delta State University of Science and Technology. Ozoro, Nigeria
    • Monday Chukwugeku Isoso Department of Accounting, Dennis Osadebay University. Asaba, Delta State. Nigeria
    • Lucky Nmamefune Ogbolu Department of Accounting, Delta State University of Science and Technology. Ozoro, Nigeria
    • Monye Osita Department of Accounting, Novena University, Ogume, Delta State. Nigeria
    • Monday John Onyeme Department of Accounting, Novena University, Ogume, Delta State. Nigeria
    • Michael Rerhime Atokpe Department of Accounting, Dennis Osadebay University. Asaba, Delta State. Nigeria
    https://doi.org/10.14419/fyw57m06

    Received date: May 28, 2025

    Accepted date: July 3, 2025

    Published date: July 17, 2025

  • Human Capital; Earnings Potential; Enhanced Expenditure; Firm Value; Nigeria

  • Abstract

    Despite that, human capital has over the years become a major subject of inquiry and discourse, and ‎will continue to elicit overwhelming interest in management science research. It is against this ‎backdrop that this paper investigated human capital potency (HCP) and earning potentials of firms ‎in Nigeria. HCP measures used are Expenditure on education, Expenditure on training, ‎Expenditure on skill acquisition, and Expenditure on research and development, while earning ‎potential was measured by return on equity (ROE). Data were analyzed using the panel ‎autoregressive distributed lag model (PARDL). The findings suggest that it is human capital and ‎not non–human capital that drives firms earning potential of Nigerian firms. Based on this ‎finding, the paper recommended that there is need for improved human capital potency via ‎enhanced expenditure on education, expenditure on training, expenditure on skill acquisition, and ‎expenditure on research and development that should be sustained and improve firms’ value in ‎Nigeria‎.

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  • How to Cite

    Ashibogwu , K. N. ., Isoso , M. C. ., Ogbolu , L. N. ., Osita , M. ., Onyeme , M. J. ., & Atokpe, M. R. . . (2025). Human Capital Potency and Earning Potentials of Firms in Nigeria. International Journal of Accounting and Economics Studies, 12(3), 91-96. https://doi.org/10.14419/fyw57m06