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The impact of investment in human capital on bank performance: evidence from Bangladesh

Author

Listed:
  • Md. Mominur Rahman

    (Comilla University)

  • Bilkis Akhter

    (University of Dhaka)

Abstract

The objective of this study is to examine the aspects of investment in human capital like training of employees, education level of employees, knowledge level of employees, and skills of employees that influence the performance of a bank and to provide some comments to improve the banking sectors. This research included a conceptual model along with hypotheses. This empirical study is based on primary data. The data were obtained by the convenient sampling procedure with a questionnaire using the seven-point Likert scale. The hypothesized model has been validated using data from 261 participants, and an analysis was conducted using the system of structural equation modelling. The results revealed that investment in training, knowledge level and skills of the employee were positively connected to bank performance at less than 1% and a 5% level of significance. But the employee’s educational level does not substantially affect bank output in this analysis. The focus field is the study of the human capital investments of the Human Resources Division at Janata Bank Limited. It investigates different aspects of the Janata Bank’s facilities as well as the problems and prospects. Thus, this study can be a policy dialogue for the managers, owners, decision-makers, and academicians.

Suggested Citation

  • Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    • Handle: RePEc:spr:futbus:v:7:y:2021:i:1:d:10.1186_s43093-021-00105-5
    DOI: 10.1186/s43093-021-00105-5
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    Cited by:

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    3. Alžbeta Kucharčíková & Martin Mičiak & Emese Tokarčíková & Nikola Štaffenová, 2023. "The Investments in Human Capital within the Human Capital Management and the Impact on the Enterprise’s Performance," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    4. Ass. Prof ORBUNDE Benshima & Ass. Prof ARUMONA Jonah & AKINTOYE Olufemi Temidayo, 2023. "Intangible Asset Investment and Business Sustainability of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1792-1812, May.
    5. Md. Mominur Rahman, 2023. "The Effect of Business Intelligence on Bank Operational Efficiency and Perceptions of Profitability," FinTech, MDPI, vol. 2(1), pages 1-21, February.

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    More about this item

    Keywords

    Human capital; Human capital investment; Bank performance; Janata Bank Limited; SEM;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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