JOURNAL ARTICLE

Relationship Between Human Capital Investment and Financial Performance of Listed Companies in India.

  • Published In: IUP Journal of Management Research, 2025, v. 24, n. 4. P. 5 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Bhosale, Arun R.; Tamragundi, A. N. 3 of 3

Abstract

The study investigates the causal relationship between Human Capital Investment (HCI) and the financial performance of the top 25 companies listed on the Bombay Stock Exchange (BSE) from 2014-15 to 2023-24. Utilizing panel data regression analysis, the study examines the impact of HCI on return on assets (ROA), return on equity (ROE), and return on capital employed (ROCE), while controlling for firm size, leverage, and capital intensity. The results reveal a significant positive causal relationship between HCI and all three financial performance metrics. The strongest explanatory power was observed for ROCE, followed by ROA and ROE. The findings, robust to diagnostic testing, emphasize the critical role of strategic HCI in enhancing profitability and operational efficiency, providing valuable insights for managers and investors to optimize human capital investments for sustainable corporate success. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:IUP Journal of Management Research. 2025/10, Vol. 24, Issue 4, p5
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:0972-5342
  • DOI:10.71329/IUPJMR/2025.24.4.5-13
  • Accession Number:189378009
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