The relationship between human capital and firm value: Evidence from Indian firms

Sisodia, Garima; Jadiyappa, Nemiraja; Joseph, Anto

doi:10.1080/23322039.2021.1954317

Cited by 15 publications

(7 citation statements)

References 61 publications

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“…Al-Delawi et al (2023) have found that the increase in the company's market value is due to human capital and that the efficiency of the employees is high. Also, Sisodia et al (2021) confirmed a positive association between a company's value and human capital. These empirical findings confirm what Smith (1776) had recognized, i.e., that people's abilities, knowledge, and skills are the fundamental source of wealth.…”

Section: Other Determinants Of a Company's Valuementioning

confidence: 60%

The Impact of Debt Financing on the Value of a Company: the Case of North Macedonian Companies

Danevska,

Stanoevska,

Dimitrieska

2023

Naše Gospodarstvo/Our Economy

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The purpose of this paper is to determine the relation between a company’s indebtedness and its value. We used a sample of 20 North Macedonian companies, listed on the Macedonian Stock Exchange (MSE) mandatory listing, and the data for 6 years’ time span. In the paper, we use Panel Data models (Pooled OLS regression, Fixed and Random Effects models) to estimate the relation between debt financing and the company’s value measured by return on assets (ROA) and Tobin’s Q. According to the results of short-term debt has a statistically significant and negative impact, while the return on investments in human capital (HCROI), company’s size and current ratio have a positive and statistically significant impact on the ROA. When investigating the impact of indebtedness on a company’s value measured by Tobin’s Q, short-term and long-term debt have positive and statistically significant effects. Our research suggests that while debt increases a company’s indicators for market performance, it also decreases the company’s accounting operating performance. Therefore, when analyzing a company’s value, investors should be considering not only Tobin’s Q, which can be sometimes regarded as a market-to-book value ratio, but also to look at the fundamental ratios, such as ROA, ROE (return on equity) and EPS (earnings per share).

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Section: Other Determinants Of a Company's Valuementioning

confidence: 60%

The Impact of Debt Financing on the Value of a Company: the Case of North Macedonian Companies

Danevska,

Stanoevska,

Dimitrieska

2023

Naše Gospodarstvo/Our Economy

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“…Studies on human capital in organisations focus on the way employees and managers accumulate knowledge and skills and how such stock of knowledge and skills enable organisations to improve performance (Timothy, 2022). Sisodia et al (2021) stated that it is difficult for a firm to create competitive advantage without efficient labour force, even when the firm has adequate financial resources, advanced technologies and sophisticated infrastructure. Human capital aids in the achievement of organizational goals with the overarching goal of fostering regional and national development.…”

Section: Human Capital Developmentmentioning

confidence: 99%

Role of Human Capital Development in Firm Performance: The Mediating Effect of Innovation. A Case of Manufacturing Firms in Plateau State, Nigeria

Tuamyil,

Gado

2024

TR1010

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An organization’s competitive strategy is strengthened when it has a greater specialized human expertise above its competitors. The main objective of this study is to examine the role of human capital development on firm performance in Plateau State, Nigeria and the mediating effect of innovation. A cross-sectional and ex-post factor research design was used for the study. The population consists of 231owners/managers of MSMEsin Plateau State, Nigeria. A sample size of 146 was used. The partial least square structural equation model (PLS-SEM) was used.The findings of the study revealed that although there is no significant direct relationship between human capital development and firm performance, there is a significant relationship between human capital development and innovation and between innovation and firm performance. Innovation was also found to mediate the effect of human capital development on performance. The study recommended, amongst other things, that organizations should beinnovative.

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“…According to the human resources approach, employees are the most important resources of an organization (see: [35], [36]). The importance of human resources is emphasized both in classical and modern models of organization, where not only human resources are almost always among the basic elements of the organization, but also have a fundamental impact on the effectiveness of its functioning [37].…”

Section: B Job Performance As the Factor Influencing Organizational P...mentioning

confidence: 99%

The Model of Organizational Performance Based on Employees’ Dynamic Capabilities–Verification During Crisis Caused by Black Swan Event

et al. 2023

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The article concerns the potential influence of employees' dynamic capabilities on the performance of entire organization, which operates in crisis caused by Black Swan event. It is the expansion of job performance model based on employees' dynamic capabilities, proposing the possibility of translating the positive influence of those capabilities onto entire organization and underlining the importance of employees' dynamic capabilities during crisis within organization. Based on literature analysis, the shape of the amended model is proposed, in which employees' dynamic capabilities influence organizational performance through elements of the original model (person-job fit, work motivation, job satisfaction, work engagement and job performance), and additional ones: person-organization fit, person-supervisor fit. The proposed model is empirically verified based on the sample of 1160 organization operating in Poland, Italy and USA during an active wave of COVID-19 pandemic (which is an example of Black Swan event). The results obtained using path analysis confirmed that employees' dynamic capabilities indeed influence organizational performance of organizations operating in crisis caused by Black Swan event through elements proposed in the model. INDEX TERMSEmployees' dynamic capabilities, organizational performance, Black Swan event, organizational crisis, COVID-19, management.

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The relationship between human capital and firm value: Evidence from Indian firms

Cited by 15 publications

References 61 publications

The Impact of Debt Financing on the Value of a Company: the Case of North Macedonian Companies

The Impact of Debt Financing on the Value of a Company: the Case of North Macedonian Companies

Role of Human Capital Development in Firm Performance: The Mediating Effect of Innovation. A Case of Manufacturing Firms in Plateau State, Nigeria

The Model of Organizational Performance Based on Employees’ Dynamic Capabilities–Verification During Crisis Caused by Black Swan Event

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