HCM and firm performance
| Panel A. HCM and ROAt+1 | ||||||
|---|---|---|---|---|---|---|
| ROA t+1 | ||||||
| (1) | (2) | (3) | (4) | (5) | (6) | |
| HCM_Disclosure | 0.004*** (6.705) | 0.003*** (3.552) | ||||
| HCM_Disclosure (Entropy) | 0.017*** (2.739) | 0.012* (1.723) | ||||
| HCM_Turnover Retention | −0.001** (−2.422) | −0.001 (−1.291) | ||||
| HCM_Safety and Health | 0.002*** (2.731) | 0.001 (1.396) | ||||
| HCM_Succession Planning | 0.003*** (4.370) | 0.002*** (3.003) | ||||
| HCM_Recruiting | −0.000 (−0.057) | 0.001** (2.329) | ||||
| HCM_Pay Equity | −0.000 (−0.619) | −0.000 (−0.297) | ||||
| HCM_Employment Engagement | −0.000 (−0.591) | 0.001 (1.163) | ||||
| HCM_Employee Development | −0.002*** (−2.739) | −0.001* (−1.837) | ||||
| HCM_Diversity | 0.001 (0.856) | −0.001 (−0.934) | ||||
| HCM_Culture | 0.004*** (4.842) | 0.001 (0.790) | ||||
| HCM_Compensation | 0.007*** (9.572) | 0.004*** (4.870) | ||||
| Cash/assets | 0.086*** (15.196) | 0.086*** (13.758) | 0.087*** (15.291) | 0.086*** (13.803) | 0.086*** (15.272) | 0.087*** (13.931) |
| R&D/assets | 0.605*** (8.679) | 0.471*** (5.755) | 0.626*** (8.950) | 0.474*** (5.780) | 0.552*** (7.931) | 0.464*** (5.666) |
| Log(employee/total assets) | 0.008*** (8.596) | 0.002 (1.288) | 0.009*** (8.805) | 0.002 (1.326) | 0.008*** (8.219) | 0.002 (1.264) |
| Tangibility | 0.002 (0.423) | −0.010 (−1.091) | 0.003 (0.549) | −0.009 (−1.076) | 0.003 (0.478) | −0.010 (−1.118) |
| Sales growth | 0.021*** (17.009) | 0.020*** (16.658) | 0.021*** (16.953) | 0.020*** (16.619) | 0.021*** (16.830) | 0.020*** (16.613) |
| Leverage | −0.110*** (−25.478) | −0.031*** (−4.842) | −0.112*** (−26.185) | −0.032*** (−4.947) | −0.107*** (−24.944) | −0.031*** (−4.790) |
| Log(assets) | 0.014*** (21.071) | −0.013*** (−6.761) | 0.014*** (20.949) | −0.013*** (−6.747) | 0.013*** (20.362) | −0.013*** (−6.979) |
| Observations | 31,984 | 31,505 | 31,984 | 31,505 | 31,984 | 31,505 |
| Adjusted R2 | 0.203 | 0.410 | 0.201 | 0.410 | 0.209 | 0.411 |
| Fixed effects | Industry×Year | Industry×Year +Firm | Industry×Year | Industry×Year +Firm | Industry×Year | Industry×Year +Firm |
| Panel A. HCM and ROAt+1 | ||||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| HCM_Disclosure | 0.004*** (6.705) | 0.003*** (3.552) | ||||
| HCM_Disclosure (Entropy) | 0.017*** (2.739) | 0.012* (1.723) | ||||
| HCM_Turnover Retention | −0.001** (−2.422) | −0.001 (−1.291) | ||||
| HCM_Safety and Health | 0.002*** (2.731) | 0.001 (1.396) | ||||
| HCM_Succession Planning | 0.003*** (4.370) | 0.002*** (3.003) | ||||
| HCM_Recruiting | −0.000 (−0.057) | 0.001** (2.329) | ||||
| HCM_Pay Equity | −0.000 (−0.619) | −0.000 (−0.297) | ||||
| HCM_Employment Engagement | −0.000 (−0.591) | 0.001 (1.163) | ||||
| HCM_Employee Development | −0.002*** (−2.739) | −0.001* (−1.837) | ||||
| HCM_Diversity | 0.001 (0.856) | −0.001 (−0.934) | ||||
| HCM_Culture | 0.004*** (4.842) | 0.001 (0.790) | ||||
| HCM_Compensation | 0.007*** (9.572) | 0.004*** (4.870) | ||||
| Cash/assets | 0.086*** (15.196) | 0.086*** (13.758) | 0.087*** (15.291) | 0.086*** (13.803) | 0.086*** (15.272) | 0.087*** (13.931) |
| R&D/assets | 0.605*** (8.679) | 0.471*** (5.755) | 0.626*** (8.950) | 0.474*** (5.780) | 0.552*** (7.931) | 0.464*** (5.666) |
| Log(employee/total assets) | 0.008*** (8.596) | 0.002 (1.288) | 0.009*** (8.805) | 0.002 (1.326) | 0.008*** (8.219) | 0.002 (1.264) |
| Tangibility | 0.002 (0.423) | −0.010 (−1.091) | 0.003 (0.549) | −0.009 (−1.076) | 0.003 (0.478) | −0.010 (−1.118) |
| Sales growth | 0.021*** (17.009) | 0.020*** (16.658) | 0.021*** (16.953) | 0.020*** (16.619) | 0.021*** (16.830) | 0.020*** (16.613) |
| Leverage | −0.110*** (−25.478) | −0.031*** (−4.842) | −0.112*** (−26.185) | −0.032*** (−4.947) | −0.107*** (−24.944) | −0.031*** (−4.790) |
| Log(assets) | 0.014*** (21.071) | −0.013*** (−6.761) | 0.014*** (20.949) | −0.013*** (−6.747) | 0.013*** (20.362) | −0.013*** (−6.979) |
| Observations | 31,984 | 31,505 | 31,984 | 31,505 | 31,984 | 31,505 |
| Adjusted | 0.203 | 0.410 | 0.201 | 0.410 | 0.209 | 0.411 |
| Fixed effects | Industry×Year | Industry×Year | Industry×Year | Industry×Year | Industry×Year | Industry×Year |
| Panel B. HCM and Tobin’s Qt+1 | ||||||
|---|---|---|---|---|---|---|
| Tobin’s Qt+1 | ||||||
| (1) | (2) | (3) | (4) | (5) | (6) | |
| HCM_Disclosure | −0.066*** (−3.814) | −0.057*** (−4.359) | ||||
| HCM_Disclosure (Entropy) | −0.656*** (−4.438) | −0.325** (−2.534) | ||||
| HCM_Turnover Retention | −0.019 (−1.295) | −0.014 (−1.115) | ||||
| HCM_Safety and Health | −0.041** (−2.232) | −0.035** (−2.498) | ||||
| HCM_Succession Planning | 0.016 (1.047) | −0.010 (−0.826) | ||||
| HCM_Recruiting | 0.018 (1.260) | 0.028** (2.496) | ||||
| HCM_Pay Equity | −0.048*** (−3.697) | −0.001 (−0.070) | ||||
| HCM_Employment Engagement | 0.003 (0.206) | 0.002 (0.232) | ||||
| HCM_Employee Development | −0.071*** (−4.114) | −0.050*** (−3.523) | ||||
| HCM_Diversity | 0.006 (0.396) | −0.040*** (−2.732) | ||||
| HCM_Culture | −0.042** (−2.431) | −0.023* (−1.770) | ||||
| HCM_Compensation | 0.062*** (3.593) | 0.004 (0.329) | ||||
| Cash/assets | 1.533*** (8.813) | 0.762*** (5.821) | 1.517*** (8.751) | 0.752*** (5.743) | 1.515*** (8.755) | 0.767*** (5.841) |
| R&D/assets | 19.288*** (9.983) | 7.416*** (4.479) | 19.138*** (9.896) | 7.360*** (4.450) | 18.389*** (9.628) | 7.483*** (4.512) |
| Log(employee/total assets) | −0.032 (−1.284) | −0.076** (−2.385) | −0.034 (−1.328) | −0.077** (−2.418) | −0.036 (−1.454) | −0.074** (−2.335) |
| Tangibility | −0.356*** (−2.645) | 0.088 (0.542) | −0.364*** (−2.708) | 0.085 (0.520) | −0.297** (−2.200) | 0.104 (0.640) |
| Sales growth | 0.214*** (8.946) | 0.067*** (3.809) | 0.213*** (8.932) | 0.067*** (3.832) | 0.205*** (8.636) | 0.064*** (3.662) |
| Leverage | 0.064 (0.459) | 0.359*** (2.888) | 0.083 (0.587) | 0.374*** (3.010) | 0.082 (0.596) | 0.356*** (2.857) |
| Log(assets) | −0.610*** (−20.725) | −0.808*** (−19.754) | −0.611*** (−20.786) | −0.809*** (−19.740) | −0.613*** (−20.992) | −0.812*** (−19.833) |
| Observations | 31,962 | 31,483 | 31,962 | 31,483 | 31,962 | 31,483 |
| Adjusted R2 | 0.385 | 0.699 | 0.385 | 0.699 | 0.388 | 0.700 |
| Fixed effects | Industry×Year | Industry×Year +Firm | Industry×Year | Industry×Year +Firm | Industry×Year | Industry×Year +Firm |
| Panel B. HCM and Tobin’s Qt+1 | ||||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| HCM_Disclosure | −0.066*** (−3.814) | −0.057*** (−4.359) | ||||
| HCM_Disclosure (Entropy) | −0.656*** (−4.438) | −0.325** (−2.534) | ||||
| HCM_Turnover Retention | −0.019 (−1.295) | −0.014 (−1.115) | ||||
| HCM_Safety and Health | −0.041** (−2.232) | −0.035** (−2.498) | ||||
| HCM_Succession Planning | 0.016 (1.047) | −0.010 (−0.826) | ||||
| HCM_Recruiting | 0.018 (1.260) | 0.028** (2.496) | ||||
| HCM_Pay Equity | −0.048*** (−3.697) | −0.001 (−0.070) | ||||
| HCM_Employment Engagement | 0.003 (0.206) | 0.002 (0.232) | ||||
| HCM_Employee Development | −0.071*** (−4.114) | −0.050*** (−3.523) | ||||
| HCM_Diversity | 0.006 (0.396) | −0.040*** (−2.732) | ||||
| HCM_Culture | −0.042** (−2.431) | −0.023* (−1.770) | ||||
| HCM_Compensation | 0.062*** (3.593) | 0.004 (0.329) | ||||
| Cash/assets | 1.533*** (8.813) | 0.762*** (5.821) | 1.517*** (8.751) | 0.752*** (5.743) | 1.515*** (8.755) | 0.767*** (5.841) |
| R&D/assets | 19.288*** (9.983) | 7.416*** (4.479) | 19.138*** (9.896) | 7.360*** (4.450) | 18.389*** (9.628) | 7.483*** (4.512) |
| Log(employee/total assets) | −0.032 (−1.284) | −0.076** (−2.385) | −0.034 (−1.328) | −0.077** (−2.418) | −0.036 (−1.454) | −0.074** (−2.335) |
| Tangibility | −0.356*** (−2.645) | 0.088 (0.542) | −0.364*** (−2.708) | 0.085 (0.520) | −0.297** (−2.200) | 0.104 (0.640) |
| Sales growth | 0.214*** (8.946) | 0.067*** (3.809) | 0.213*** (8.932) | 0.067*** (3.832) | 0.205*** (8.636) | 0.064*** (3.662) |
| Leverage | 0.064 (0.459) | 0.359*** (2.888) | 0.083 (0.587) | 0.374*** (3.010) | 0.082 (0.596) | 0.356*** (2.857) |
| Log(assets) | −0.610*** (−20.725) | −0.808*** (−19.754) | −0.611*** (−20.786) | −0.809*** (−19.740) | −0.613*** (−20.992) | −0.812*** (−19.833) |
| Observations | 31,962 | 31,483 | 31,962 | 31,483 | 31,962 | 31,483 |
| Adjusted | 0.385 | 0.699 | 0.385 | 0.699 | 0.388 | 0.700 |
| Fixed effects | Industry×Year | Industry×Year | Industry×Year | Industry×Year | Industry×Year | Industry×Year |
Note(s): This table presents results from regressing firm performance variables on HCM and control variables. Standard errors are adjusted for clustering at the firm level, and t-statistics are in parentheses. Statistical significance at the 1, 5 and 10% levels is indicated by ***, ** and *, respectively