This study examines the effect of Human Resource Accounting (HRA) practices on the corporate performance of listed manufacturing companies in Nigeria between 2013 and 2022. Corporate performance was assessed using Return on Equity (ROE), Return on Capital Employed (ROCE), Return on Assets (ROA), and Earnings Per Share (EPS) as dependent variables. The independent variables include the Historical Cost, Replacement Cost, Opportunity Cost, and Economic Value Approaches to HRA. Firm Size, Firm Age, Ownership Structure, and Audit Quality were included as control variables. Using a mixed-method approach combining survey research and ex-post facto design, the study employed both primary and secondary data. Regression results show that HRA practices significantly influence corporate performance, with the Historical Cost Approach demonstrating the strongest positive effect. However, performance trends over the ten years were inconsistent, indicating a lack of strategic alignment between human capital investment and performance outcomes. Guided by Human Capital Theory, Stakeholder Theory , and the Resource-Based View (RBV), the study highlights the critical role of human capital as a strategic and reportable resource. Beyond manufacturing, the findings apply to sectors such as banking, telecommunications, healthcare, and education. The study also compares international best practices, notably IFRS-aligned disclosures in India, South Africa, and the European Union. It recommends the adoption of IFRS-compliant frameworks, especially IAS 19, IAS 38, IFRS 13, and ISSB S1/S2—alongside a national capacity-building program/training for accounting and Human Resource Practitioners. This will strengthen human capital reporting, improve governance, and enhance investor confidence in Nigeria’s manufacturing and broader economic sectors.
Oyerogba et al. (Mon,) studied this question.