The Controlling Effect of Corporate Governance on Human Resource Accounting and Firm Value: Evidence from Quoted Manufacturing Firms in Nigeria

Abstract

This study investigated how corporate governance moderates the effect of human resource accounting on market value added of quoted manufacturing firms in Nigeria. Using panel data and linear regression with PCSEs, salaries and wages (LSW) showed a significant positive effect on firm value, while training and development costs (LTDC) were positive but insignificant. Board independence (BI) and audit committee independence (ACI) revealed negative insignificant associations, reflecting a conservative influence on value creation. Diagnostic tests confirmed the suitability of the random effects model with robust corrections. The overall models were statistically significant, though with modest explanatory power (R² = 0.064). The null hypothesis was rejected, confirming corporate governance as a significant moderator. The study underscores the importance of human resource accounting and governance structures in enhancing firm value and provides insights for managers, policymakers, and researchers.