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Exploring the Relationship between Human Capital Investment and Corporate Financial Performance of Jordanian Industrial Sectors

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  • Faris Nasif ALSHUBIRI

    (Amman Arab University, Jordan)

Abstract

The revolution of globalization, computerization and information technology has entered to Jordanian market. This phenomenon requires company's attention of human element and the acquired knowledge, experience and the development of the so-called concept of intellectual capital.(IC) In this study I used only the human capital as a part of IC. This study aims to exploring the relationship between human capital investment (HCI), and corporate financial performance. This study used an 11 industrial sectors listed of Amman Stock Exchange from 2005to 2011. Correlation analysis tests used in this study and the results indicate the high positive significant relationship between HCI and corporate financial performance related to, ROE , PTBV , log of sales , log of assets , DPS and ICR but no significant relationship between HCI and WCTO. The researcher recommends industrial companies to strengthen and stimulate the concept of human capital in the companies and the need for develop administrative innovation program. For future analysis may be used more sectors listed in market in addition used the all parts of intellectual capital related to structural and physical capital with corporate financial performance.

Suggested Citation

  • Faris Nasif ALSHUBIRI, 2013. "Exploring the Relationship between Human Capital Investment and Corporate Financial Performance of Jordanian Industrial Sectors," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 277-285, December.
    • Handle: RePEc:rom:econmn:v:16:y:2013:i:2:p:277-285
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    References listed on IDEAS

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    More about this item

    Keywords

    Intellectual Capital; Human Capital Investment; Corporate Financial Performance.;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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