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.
Ashibogwu et al. (Thu,) studied this question.