Izvorni znanstveni članak
Relationship Between Human Capital Investments and Firm’s Net Profit
Matimba F Masuluke
; Turfloop Graduate School of Leadership, Faculty of Management and Law, University of Limpopo South Africa
Collins C Ngwakwe
; Turfloop Graduate School of Leadership, Faculty of Management and Law, University of Limpopo South Africa
Sažetak
This paper examined whether human capital investment (HCI) does contribute to the profit performance of selected companies in the FTSE/JSE Responsible Investment Index Series. Secondary data on companies’ profit, human capital investment (HCI) (main independent variable) and sales turnover (STO) (control variable), were collec-ted from the integrated reports of 28 companies for six years 2010 – 2015. Using a pa-nel data approach and the regression statistics, findings from the analysis present two important findings. Firstly, the P value on the influence of two independent variables (HCI and STO) indicate a significant relationship at P = 0.0001. Secondly, the HCI, ac-ting alone, shows a negative but not significant relationship with net profit. However, this relationship is temporary; at long run, HCI has the propensity to positively impact better performance of net profit, hence companies should not evaluate the HCI profit performance based purely on a short term. The benefit would take a little while to mature. The paper recommends further research to cover wider pool of companies at longer term.
Ključne riječi
human capital investment; net profit; financial performance
Hrčak ID:
207782
URI
Datum izdavanja:
30.6.2018.
Posjeta: 1.191 *