The relationship between human capital and firm value: Evidence from Indian firms

Cogent Economics & Finance

Anto Joseph¹  Nemiraja Jadiyappa²  Garima Sisodia³ 

[1] Department of Business Administration, Rajagiri College of Social Sciences, Cochin, 682039, Indi;Department of Finance, Indian Institute of Management, Raipur, 492001, Indi;Department of Finance, Rajagiri Business School, Cochin, 682039, Indi;

关键词: human capital;    firm value;    firm growth;    firm volatility;    firm valuation;   

DOI  :  10.1080/23322039.2021.1954317

来源: Taylor & Francis

【 摘 要 】

The purpose of this paper is to investigate whether human capital affects firm value by following a positive methodological approach. According to the classical theory of economic growth, the output of a country depends on its human and physical capital. At the micro-level, the same theory holds true for firm output. Thus, the human capital of a firm should play a significant role in firm performance and therefore firm valuation. Our results show a positive relationship between human capital and firm value. Human capital creates value; first, by better utilization of current growth opportunities; second, by creating future growth opportunities, and lastly, by reducing the volatility associated with the firm growth rate. Also, we test the size effect on the relationship between human capital and firm value and do not find any differential impact.

【 授权许可】

CC BY