Human Capital Efficiency and Corporate Performance in Bangladesh: A Study of DSE Listed BanksMd. Nur Nabi*
Received: 23 April, 2021
Accepted: 24 May, 2021
Published: 25 May, 2021
Available in online: 26 May, 2021
Human Capital is similar to the Mobil of a vehicle; without it, the engine will not run. Human Capital is like Mobil in today's business world, and it's a big deal for a company's performance and growth. And this research is an essential part of the phenomenon. The study provides evidence of the impact of human capital efficiency on the corporate performance of Bangladesh's DSE-listed banks. The effect of Human Capital Efficiency on Performance was investigated using the Human Capital component of the Value Added Intellectual Coefficient (VAIC) methodology for a period of five years (2010-2014). Multiple Linear regression models were used for analyzing the relationship between the variables of interest; Employees’ growth (EG), Earnings per Share (EPS), Return on Assets (ROA), Human Capital Efficiency (HCE), lagged Human Capital Efficiency and Size of the firms. The finding of the study indicates that there is positive significant impact of Human Capital Efficiency on ROA and EPS. On the other hand, HCE has positive but insignificant impact on EG. This study contributes to the existing Human Capital literature by revealing the HCE of banks and its impact on Corporate Performance.
Keywords: Human Capital efficiency, Value added intellectual coefficient, Return on asset, Corporate performance, Value added, Earnings per share.
- Arshad, R., Noor, A. H. M., &Yahya, A. (2015). Human Capital and Islamic-Based Social Impact Model: Small Enterprise Perspective. Procedia Economics and Finance, 31, 510-519.
- Bartel, A. (1989), “Formal employee training programs and their impact on labor productivity: evidence from a human resources survey”, NBER Working Paper Series, WP no. 3026.
- Becker, B., Huselid, M.A. & Ulrich, D. (2002). Six key principles for measuring human capital performance in your organization, Viewed 14 October 2014,
- Ekwe, M.C. (2013). The Relationship between Intellectual Capitals and Growth in Revenue of Deposit Money Banks in Nigeria. Research Journal of Finance and Accounting, 4(12), 55-64.
- Iranmahd, Moeinaddin, Shahmoradi and Heyrani (2014). The Effect of Intellectual Capital on Cost of Finance and Firm Value. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 1-12
- Kamal, M.H.H, Mat, R.C, Rahim, N.A., Husin, N, & Ismail, I. (2012). Intellectual Capital and Firm Performance of Commercial Banks in Malaysia. Asian Economic and Financial Review 2(4):577-590
- Parham, S. &Heling, G.W.J. (2015). The Relationship between Human Capital Efficiency and Financial Performance of Dutch Production Companies. Research Journal of Finance and Accounting, 6(8),
- Pulic, A. (1998). Measuring the Performance of Intellectual potential in knowledge Economy. A paper presented at 2nd World Congress on Measuring and Managing Intellectual Capital, McMaster University, Hamilton.
- Pulic, A. (2000). "VAIC - An Accounting tool for ICmanagement", International Journal of Technology Management, 20(5-8), 702-714.
- Schultz, T. (1961). Investment in Human Capital. The American Economic Review, 51,1-17.
- Senker, P. & Brady, T. (1989). Corporate strategy: skills, education and training in M. Dodgson, Technology strategy and the firm: management and public policy, Longman, a SPRUPublication, Ch.10, 155-169.
- Stewart, Thomas, (1997). Intellectual Capital: New Wealth of Organizations.
- Sveiby, K.E. (2001). Measuring Competence [online],http://www.sveiby.com/articles/MeasureComp etence.html.
- Ting, W.K.I. & Lean, H.H. (2009). Intellectual capital performance of financial institutions in Malaysia. Journal of Intellectual Capital, 10(4), 588-99.
- Yu, K.Y., Ng, H.T., Wong, W.K., Chu, S.K.W. & Chan, K.H. (2010). An Empirical study of the Impact of Intellectual Capital Performance on Business Performance. The 7th International Conference on Intellectual Capital, Knowledge Management &Organisational Learning, The Hong KongPolytechnic University, Hong Kong. Conference paper.
This work is licensed under a Creative Commons Attribution 4.0 International License.