Value Added Human Capital and Firms’ Financial Performance

Ria Arum Oktavina, Sedianingsih Sedianingsih

2017

Abstract

This study aims is to analyze the influence of value added human capital (VAHU) as one of the intellectual capital components on firms’ financial performance. Samples used are 299 manufacturing companies listed in Bursa Efek Indonesia (BEI) that complies with certain criteria in the period of 2013-2015. This research uses a quantitative approach with linear regression analysis for the hypothesis test. The result shows that value added human capital is influencing positively and significantly on firms’ financial performance. It is proved that total expenditures for employees, including salaries, allowances, bonuses, education and training has the ability to create an added value, which then increase the firms’ financial performance that is measured by ROA. It provides a practical contribution for companies as one of the considerations in human capital decision-making.

Paper Citation

in Harvard Style

Oktavina R. and Sedianingsih S. (2017). Value Added Human Capital and Firms’ Financial Performance.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 312-315. DOI: 10.5220/0007081403120315

in Bibtex Style

@conference{iciebp17,
author={Ria Arum Oktavina and Sedianingsih Sedianingsih},
title={Value Added Human Capital and Firms’ Financial Performance},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={312-315},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007081403120315},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Value Added Human Capital and Firms’ Financial Performance
SN - 978-989-758-315-5
AU - Oktavina R.
AU - Sedianingsih S.
PY - 2017
SP - 312
EP - 315
DO - 10.5220/0007081403120315