Master of Science in Economics
Faculty / School
Faculty of Business Administration (FBA)
Department of Economics
Date of Submission
Dr. Muhammad Nishat, Faculty of Business Administration, Institute of Business Administration, Karachi
MSECO Research Project
Literature on firm performance and human capital suggests that human capital affects the performance of firms. In this study I seek to investigate the human capital’s effect on the performance of Pakistani firms listed on Pakistan Stock Exchange using data of 80 most liquid firms from 2006 to 2016. My research focuses on three main research questions. First, human capital affects the performance of firms positively. Second, the human capital’s effect on the performance of firms is higher for small firms compared to big firms. Third the effect of change in human capital on the firm performance is different across industry types. The results show that growth in salary of the employees is positively related to Tobin’s Q. Based on the correlation, finding of the univariate and multivariate regression analysis the results show that the human capital plays a significant role in the performance of Pakistani firms and this effect is higher for small firms and decreases as the firm increases in its market size.
Ahmed, K. (2017). Relationship of employee pay as a measure of human capital with firm performance (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mseco/9
The full text of this document is only accessible to authorized users.