Effect of Employee Cost on the Performance of Commercial Banks in Nigeria
1Nmesirionye, Josephine Adanma, 2 Okezie Stella Ogechukwu & 3Eshiet Udeme Enobong
Department of Accounting, Micheal Okpara University of Agriculture Umudike
The study examined the effect of employee cost on the performance of Commercial Banks in Nigeria. To achieve the objectives of the study ex-post facto research design was adopted. The population of the study is made up of 15 commercial banks listed in Nigeria stock exchange as at December, 2019. While the sample size is 10 commercial banks listed in Nigeria stock exchange. Secondary data were obtained using annual reports and accounts of the selected commercial banks. Data were analyzed using panel data based regression analysis. The findings revealed that employee cost has a positive and significant effect on earnings per share of commercial banks in Nigeria. The study concludes that employee cost has significant effect on performance of commercial banks in Nigeria. The study recommends that commercial banks should recognize that cost expended on employees are investments that will yield returns if not for the short run but in the long run existence of the banks. The corporation should further ensure that recruitment and selection practice is designed to obtain optimum match of persons and position as well as to communicate realistic expectations.
Keywords: Commercial banks, Earnings per share, Employee cost, Human capital, Performance.