Employee Relations and Financial Performance of Quoted Manufacturing Firms in Nigeria
Emmanuel Shina GBORE, Muyiwa Ezekiel ALADE & Wale Henry AGBAJE
The recent global economic revolution in the manufacturing industry has made the retention of quality employees in companies’ payroll a significant factor in determining company’s financial performance. This study therefore examined the effect of employee relations on financial performance of quoted manufacturing firms in Nigeria. This study covered 40 manufacturing firms listed on the Nigerian Stock Exchange as at December, 2022. Data were collected from secondary sources through the published annual reports of the selected firms and fact book for the period of 2012 to 2022. Data collected were analysed using descriptive statistics and panel data regression analysis. The findings of the study revealed that health and safety co-eff. = 0.6185; t = -2.85, emoluments co-eff. = -0.0897; t = -2.07, pension co-eff. =0.5894; t = 1.52 which are variables for proxy of employee relations had significant effect on financial performance of the manufacturing firms; while social welfare co-eff. = -0.0312; t = 1.32 was insignificant. The study concluded that, health and safety, emolument, pension of employees must be given priority by employers in the manufacturing sector in order to increase the financial performance. It is therefore recommended that these factors should be integrated into the policies and strategic plans of listed manufacturing firms as it is capable of enhancing their financial performance
Keywords: Emolument, financial performance, health and safety, pension, social welfare, manufacturing sector