African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4173

Full Length Research Paper

Effect of human capital accounting on earning per share of equity owners of deposit money banks in Nigeria

OLAOYE Clement Olatunji
  • OLAOYE Clement Olatunji
  • Department of Accounting, Ekiti State University, Ado-Ekiti, Ekiti, Nigeria.
  • Google Scholar
AFOLALU Anthony Buyide
  • AFOLALU Anthony Buyide
  • Bursary Department, the Federal Polytechnic, Ado-Ekiti, Ekiti, Nigeria.
  • Google Scholar

  •  Received: 04 April 2020
  •  Accepted: 02 October 2020
  •  Published: 30 November 2020


The study examined the effect of human capital accounting on Earning per Share (EPS) of deposit money banks in Nigeria. Secondary data were collated from annual reports of the sixteen deposit money banks listed on the Nigerian Stock Exchange between 2006 and 2017. The study employed static panel data of fixed and random effect to explore the relationship between human capital accounting and EPS of deposit money banks in Nigeria. Post estimation test (Hausman Test) was also conducted to select the best and most consistent estimator. Random effect was selected to achieve the stated objective. The results of the random effect revealed that the pension and training and development have significant positive relationship with EPS while other salaries and wages have insignificant positive relationship except director’s remuneration (RENMR) that has insignificant negative relationship with EPS. This also implies that training and development, and pension are critical factors that are germane to human capital accounting to boost the earning per share so as to enhance the performance of the banks. The reported adjusted R-Square of value of 0.3876 which is 39% of the systematic variation of the EPS of the firms could be jointly explained by the salaries and wages, training and development, director’s remuneration and pension. Based on these finding, the management of banks should give priority to payment of pension and also engage in continuous training and development of their employees to enjoying better EPS.


Key words: Human capital accounting, Earnings per Share (EPS), banking industry, panel data.