CORPORATE EMPLOYEES’ COMPENSATION AND PERFORMANCE OF NON-FINANCIAL LISTED FIRMS IN NIGERIA
The study on corporate employees’ compensation and performance of non-financial listed firms in Nigeria specifically examined the effect of employees’ compensation on financial performance of non-financial listed firms in Nigeria. It covered a period of 14 years (2009-2022). This period was considered important due to the fact that a number of corporations witnessed much distress and ultimate failure within the period. Ex- post facto research design was employed and data used for this study were obtained from secondary source through extraction of information from the financial reports of the listed non-financial firms in Nigeria. The study considered the entire 105 listed firms. The choice of the entire population was to enhance the robustness of the study. The sample size for this study is 85 non- financial listed firms purposively selected. The study employed the Panel Corrected Standard Errors (PCSEs) regression analysis to test the hypothesized effect between corporate compensation and financial performance. The result revealed that employee compensation have mixed result and the effect on firm value shows a negative and significant effect on financial performance while the effect on returns on assets is positive. Conclusively, the study provides valuable insights into the nuances of compensation structures and their consequences on corporate financial outcomes. The findings shed light on critical factors contributing to poor corporate financial performance, including ineffective boards, suboptimal pay packages, and insufficient financial control mechanisms.