Title : Impact of Human Resource Investment on Firm Value
Authors:
- Irene Kristanti Linggardjaja
- Isnalita Isnalita
Department : Accounting
Journal Name : Journal of Accounting and Business
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 carried out 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, creates 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 uses probability sampling method with simple random sampling technique on non-finance companies listed on the Indonesian Stock Exchange between 2013-2017. The final sample of this study is 540 firm-years. The results of this study do not support the initial proposition: HR investment does not have a significant impact in creating values for companies.
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