Volume 1, Issue II, Page 73-80

Human Capital Efficiency and Corporate Performance in Bangladesh: A Study of DSE Listed Banks

Md. Nur Nabi*

Article info

Received: 23 April, 2021

Accepted: 24 May, 2021

Published: 25 May, 2021

Available in online: 26 May, 2021

 

*Corresponding author:

[email protected]

 

Abstract

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.


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