HUMAN CAPITAL DEVELOPMENT AND CORPORATE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
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Date
2021
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Abstract
The study examined the Human Capital Development (HCD) strategies put in place by the
Nigerian deposit money banks and assessed the factors that influenced the development of human
capital in the Nigerian banking sector. It also determined the effect of HCD strategies on financial
performance of the banking sector and investigated the influence of HCD strategies on non-financial
performance of the banking sector. These were with a view to providing information on the influence of
human capital development strategies on corporate performance of deposit money banks in Nigeria.
The study adopted a descriptive survey research design. It used primary and secondary data.
The population of the study was 17 listed deposit money banks on the Nigerian Stock Exchange. A
sample size of 8 was selected using simple random sampling technique. Primary data were sourced
through the administration of two sets of structured questionnaires. The first questionnaire targeted
320 respondents (40 from each bank) from Accounting/Finance, Human Resources/Administration,
Operations and Marketing Departments. The second questionnaire were administered to 80 customers
(10 from each bank). Data were sourced on variables such as return on assets and profit from the
audited financial statement of the banks from 2011 - 2018. The study chose 2011 as the base year
because it marked the period of introduction of International Financial Reporting Standard. Data
collected were analysed using percentages and multivariate regression model.
The result showed that provision of formal education (80%), participation in seminars,
conferences and workshops (76%) and participation in trade fairs and exhibitions (72%) were human
capital development strategies put in place by the Nigerian banking sector. It also showed that managers’
active participation (84%), training needs of employee (84%), sufficient budget allocation (83%), general
and specific goals of employees’ development (80%), job development plan with comprehensive training programme (77%), and work experience of staff (76%) were the major factors influencing effective
development of human capital in the Deposit Money Banks (DMBs). Furthermore, provision of conducive
working environment (t = 4.499, p < 0.05) and participation in seminars, conferences, workshops (t =
6.946, p < 0.05) had significant effect on financial performance of the banks. In addition, formal education
(t = 3.717, p < 0.05) and participation in trade fairs and exhibitions (t = 2.194, p < 0.05) had significant
effect on the non-financial performance of the banks.
The study concluded that human capital development strategies greatly influenced corporate
performance of deposit money banks in Nigeria.