IMPACT OF HUMAN CAPITAL INVESTMENT ON FIRM' S VALUE OF LISTED AGRIBUSINESS FIRMS IN NIGERIA

Abstract

ABSTRACT
The study examined the impact of human capital investment on firm's value of listed
agribusiness firms in Nigeria, for the period 2011-2020. Human capital investment is
the stock of competencies, knowledge and personality attributes embodied in the ability
to perform labour so as to produce economic value. Or the investment people make in
themselves or by their organizations that enhance their economic productivity. Human
capital cost is proxies as directors remuneration and staff salaries and wages cost on firm
value measured by Tobin' s Q. the study adopts an ex post facto research design while
panel multiple regression was used for analysis, it was found out that, Directors
Remuneration has a negative and insignificant effect on Agribusiness in Nigeria. And
Staff Salaries and Wages Costs has a negative and significant effect on firm value of
listed Agribusiness firms in Nigeria. Based on the findings of this study, it recommends
that, Remuneration of Directors of listed Agribusiness firms should be tied to its
profitability so as to attract commitment and performance from Directors of listed
Agribusiness firms in Nigeria. This will leads to wealth maximization of shareholders.
Secondly, the board and management of listed Agribusiness firms in Nigeria should
design other incentives packages to motivate and enhance its workforce as oppose to
relying on salaries and wages of Agribusiness firms in Nigeria