Abstract

This study examined off-balance sheet information cost and financial performance. The specific objectives were to investigate whether salary and wages cost, pension and gratuity cost, research and development cost and employee benefit cost has significant effect on earnings per share of listed firms in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of sixteen (16) listed manufacturing firms for the study. Least Square regression analysis was used in this study and the findings revealed that salary and wages cost, pension and gratuity cost, research and development cost and employee benefit cost has significant effect on earnings per share of listed firms in Nigeria. The study concluded that businesses rely on the expertise and dedication of their employee to effectively and efficiently mobilize other resources for the ultimate goal of achieving the organizational objectives. The study recommended among others that firms should adopt good compensation system and incentive package in order to highly motivate workers and consequently stimulate their productivity towards improvement of corporate financial performance and that firms should improve employee benefit by introducing a post-employment medical benefit for pensioners and employees on the defined gratuity scheme.