Vol. 9 No. 1 (2022): In Progress
Articles

Employee Benefits and Earnings Per Share: The Case of Consumer Goods Firms in Nigeria

Agubata, Stella Nonye
Department of Accountancy, Faculty of Management Sciences, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria.
Emeka-Nwokeji NA
Department of Accountancy, Faculty of Management Sciences, Chukwuemeka Odumegwu Ojukwu University, Anambra State, Nigeria.
OGWU Stephen Obinozie
Department of Economics, Kingsley Ozumba Mbadiwe University, Ideato, Imo State, Nigeria.

Published 2022-04-28

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Keywords

  • Employee benefits, Earnings per share, Organizational development, Random effect, Cross sectional dependence, Consumer goods sector.

How to Cite

Nonye, A. S. ., NA, E.-N., & Obinozie, O. S. . (2022). Employee Benefits and Earnings Per Share: The Case of Consumer Goods Firms in Nigeria. Growth, 9(1), 13–19. https://doi.org/10.20448/growth.v9i1.3883

Abstract

The development of an economy involves the agglomeration of the output of various firms across the sectors. Firms’ output is basically a function of employees’ motivation. Thus, meeting the employees’ aspirations is an essential condition. The study aims at examining the effect of employees benefits on financial performance of consumer goods sector in Nigeria using panel dataset from ten consumer goods firms listed on the Nigerian Stock Exchange (NSE) and ranges from 2012 to 2019. To achieve the stated aim this study employed the panel Random effect modeling approach after subjecting the dataset to series of tests to validate its conformity with statistical prescriptions. The study's findings show that, in varied degrees, gratuity (GRY), medical allowance (MDA), and salary (SAY) has statistically significant influence on earnings per share (EPS), which is utilized as the measure of organizational development in the study. Gratuity and medical have negative effect, while Pension (PSN) and Salary were found to have positive effect. However, Pension is statistically insignificant. The implication of the findings is that an increase in salary has the tendency of enhancing organizational development. Thus, for organizational development through employees’ benefits, salary increment will have to be given a serious consideration and maybe Pension too.

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