HUMAN CAPITAL REPORTING AND FIRM VALUE AMONG NIGERIAN BANKS
ABSTRACT
This study is motivated by a desire to examine the human capital reporting and corporate value among Nigerian banks. In light of the empirical review and other discussions, a number of questions arose as to whether there is positive relationship between human capital and corporate value. Using the Ordinary Least Square (OLS) regression technique with the aid of a computer software, the empirical findings revealed among other things that, salary and Wages, Director emolument positively was found to be positively related and statistically significant to firm value. Recommendations were however made by the researcher.
TABLE OF CONTENTS
    CHAPTER ONE: INTRODUCTION
Background to the Study                 
Statement of the Research Problem            
Objectives Of The Study                     
Research Hypothesis                         
Scope of the Study                    
Significance of the Study                     
Limitations of the Study                    
CHAPTER TWO: LITERATURE REVIEW
Introduction                             
Review Of Literature on Variables             
Review of Previous Studies                     
Theoretical Framework                      
CHAPTER THREE: RESEARCH METHODOLOGY
Introduction                         
Research Design                         
Population of the Study                 
The Sample Size                             
Sampling Technique                        
Sources of Data                                 
Method of Data Analysis                    
Model Specification                         
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
Introduction                                 
Descriptive Statistic                         
Regression Results                         
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1    Introduction                                 
5.2    Summary of Findings                         
Discussion of Findings                     
Conclusion                             
Recommendations                        
Bibliography                        
Appendix                             
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Human Capital Reporting (HC) is critical in order to create a high-performing work environment. Companies need to manage HC through all the phases of an employee’s work life - from recruitment to development to retention. Human Capital Reporting involves getting the right people, with the right skills, in the right position, at the right time, rewarding them with the right incentives to perform the right function in the right environment, to most effectively perform the work of the organization. It also involves training/developing the capital, improving their output/productivity. It is to maximise the organization’s HC (i.e. the accumulation of all the individual HC in the organization). Strategic Human Capital Reporting is the transformation of how we employ, deploy, develop and evaluate the workforce. It focuses on results, not processes (Kee and Research, 2003).
According to Sveiby (1997), human capital, intellectual capital and structural capital concepts are similar to other assets. He also argues that organizations acquire human capital reporting to generate future revenues, and therefore human capital reporting should be considered when valuing a company by capitalizing instead of expensing them in the current period. The crux of his argument is that human, intellectual and structural capital should be treated as other assets. Since assets are reported on the balance sheet, these also should be reported along with the physical assets. But it is very tough to quantify the expertise, knowledge and competence of human resource as these matters are not physical assets of a company. Moreover, the monetary unit assumption of accounting does not allow a report on the value of company’s employees in company’s financial report because value of human capital is difficult to measure in monetary unit. As a result, though companies all over the world are showing their expenses related to human resources in the financial statements, they are not being able to show the expertise of their ‘Human Capital’ and how these resources are utilized, in the financial statements. For this reason, stakeholders are being deprived of getting important information about the human resources of their organization (Hossain, Khan & Yasmin, 2004).
Many conceptual frameworks have been created in order to understand, codify and examine human capital. For human capital, the definition is the economic value of two categories of intangible assets of a company: (a) organizational (structural) capital; and (b) human capital (HC) (Abeysekera and Guthrie, 2004). Structural capital refers to elements of business processes, software systems, supply chains. On the other hand, human capital refers to staff competencies and the competencies of external stakeholder human resources available to the firm (Abeysekera and Guthrie, 2004).
In the light of this, the researcher intends to empirically investigate the impact of human capital reporting and firm value in Nigerian financial institutions.  
STATEMENT OF THE RESEARCH PROBLEM
Most managers would agree that human capital reporting has an impact on the company’s value and that the human resource is the most valuable possession the company has. The phrase “our people are our best asset” has become a bit of a business cliché. According to research conducted by Kee, Foong, Richard and Yorston (2003), among top FTSE companies as well as similar studies carried out in the U.S. and Europe, today’s managers go further by confirming that human measurement and reporting can lead to improve the profitability and competitiveness of the organization.
In the light of this, the following research questions are being raised.
Is there relationship between salary and wages and firm value?
Is there relationship between number of executive directors and firm value?
Is there relationship between bonus and firm value?
Is there relationship between director’s emolument and firm value?
   OBJECTIVES OF THE STUDY
The research main objective is to empirically investigate the impact of human capital reporting and firm value in Nigerian financial institutions.
The specific objectives are to:
find out if there is relationship between salary and wages and firm value.
verify if there is relationship between number of executive directors and firm value.
determine if there is relationship between bonus and firm value.
verify if there is relationship between director’s emolument and firm value.
RESEARCH HYPOTHESIS
The following hypotheses have been formulated to serve as a base for this research;
Hypothesis I
Ho:    There is no relationship between salary and wages and firm value.
Hi:    There is a relationship between salary and wages and firm value
Hypothesis II
Ho:    There is no relationship between number of executive directors and firm value?
H1:    There is a relationship between number of executive directors and firm value?
Hypothesis III
Ho:    There is no relationship between bonus and firm value.
H1:    There is a relationship between bonus and firm value.
Hypothesis IV
Ho:    There is no relationship between director’s emolument and firm value.
H1:    There is relationship between director’s emolument and firm value.
SCOPE OF THE STUDY
This research work is an empirical study on human capital reporting and firm value in the Nigerian financial institution.
The population of the study is the entire quoted financial institutions in the Nigeria Stock Exchange, while the sample size is restricted to fourteen (14) banks quoted in the Nigeria Stock Exchange.
The length of period covered by the study was five years (2006 – 2010).
Geographically, the study will be conducted in Benin City, Edo State.
SIGNIFICANCE OF THE STUDY
This study will be important and beneficial to stakeholders of corporate firms on the important of human capital reporting and firm value.
It will assist the government and regulatory agencies on the proper conduct of human capital reporting in Nigeria.
This study will help to restore the lost confidence of the public as regard the human capital reporting and firm value in Nigeria.
Both academic and other future researchers in this similar subject matter will find it a useful source of learning and research.  
LIMITATIONS OF THE STUDY
This research cannot be regarded as perfect and hitch free as some difficulties were encountered in the course of the study.
Some of the limitations are:
Smallness of sample size: It is interesting to emphasize that the findings of this empirical research are not to be generalize for all industry, since our limited to a number of small scale enterprise.
The inability to obtain a completely random sample.
Imprecise measurement of variables.
However, strenuous effort has been made to mitigate the effects of these constraints in order to come out with an effective work.