Association of Human Capital and Firm Performance During the Financial Crisis: The Evidence from Taiwan

• Main Authors: Mei-Chih Chang, 張美智
• Other Authors: Chin-Chen Yeh
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/37115345511166042859

碩士 === 淡江大學 === 會計學系碩士在職專班 === 98 === In the relevant articles it stated that the intellectual property is not only the core of enterprise competition but also is the main source of enterprise value. Furthermore, human capital is one of the most important elements in the intellectual property. Many companies choose to weather the financial crisis by downsizing the company which unfortunately comes at the cost of its employees. So the most important question is how the firm’s performance will fluctuate in terms of human capital during these volatile economic times. This research focus on knowledge-based employees positioned by Lepak and Snell (1999), discussion the correlation of the importance of having employees with high strategic value and uniqueness. Moreover, the research use samples from listed electronic firms on the Taiwan Stock Exchange from 1997 to 2008 to study if it is feasible for firms to give out incentives based on an employee’s merit or a firm’s performance during this financial crisis. First, this study uses the Ohlson models as the basis of revision to see if there is any linearity between the valid human capital indicators and firm performance during this recent economic regression. Further, this study uses Collins (1997) models to explain the parameter incremental powers of the Ohlson model. Finally, we take Riedl’s regression coefficient difference test as a reference method to compare different periods of the human capital and firm performance explanatory power. Summary – First the empirical results show that electronic industry of human capital accounting information has an impact on a firm performance during non-financial crisis. Human capital accounting information can enhance the explanatory power of the overall firm performance. Second, the electronic industry of human capital accounting information has an impact on firm performance during financial crisis. Finally, electronic industry of human capital on stock price overall explanatory power during financial crisis is greater than electronic industry of human capital during non financial crisis.