Title: Impact of Human Recource Investment on Firm Value
Authors:
- Irene Kristanti Linggardjaja
- Isnalita Isnalita
Departement: Akuntansi
Journal Name: Jurnal Akuntansi dan Bisnis
Kinds of Journal: Sinta 2
Keywords: Human Capital; Human Resource Investment; Firm Value
ABSTRACT
This study attempts to investigate the effect of Human Resource (HR) investment that has been done by a firm. Human resource investment became the main focus of this research because HR is one of the key factors of a firm’s success. However, a great HR investment costs a lot of money that not every firm is willing to take risks. The objective of this study is to find out whether HR investment, in the form of training and education, create value for the firm. Tobin’s Q is used as a firm value proxy. This study uses multiple linear regression method for hypothesis testing and use probability sampling method with simple random sampling technique on non-finance companies listed in Indonesian Stock Exchange between 2013-2017. Final sample of this study is 540 firm-years. The result of this study does not support the initial proposition: HR investment does not have significant impact in creating values for companies.
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