The Relationship between HR Expenditure and Firm's Performance: Case of S&P BSE SENSEX 30 Companies

  • Gaurav Talan 1 University School of Management Studies, Guru Gobind Singh Indraprastha University, Delhi, India
  • Gagan Deep Sharma University School of Management Studies, Guru Gobind Singh Indraprastha University, Delhi
  • Kanchan Sehrawat Faculty of Management Studies, University of Delhi, India

Abstract

In today’s dynamic business environment, for companies to exist, they must continuously look for areas for improvement and gain
competitive advantage. It therefore becomes quintessential for companies to know which factors can have a positive effect on the
company’s performance. The purpose of this article is thus to explore if there a relationship between the HR expenses of an Indian
company and its financial performance and is this impact positive enough to motivate these companies to augment such efforts in
improving the HR management practices. For, this purpose, data on expenditure on human resource and profit after tax (PAT) for
BSE- SENSEX 30 companies was extracted for the period of10 years. In order to test the hypothesis of this study, correlation and
regression analyses were performed. Results of correlation revealed that HR expenditures are positively related to Firms performance. The findings from regression analysis revealed that HR expenditure have statistically significant effect on a firm’s financial
performance.

Published
2020-03-22
How to Cite
Gaurav Talan, Gagan Deep Sharma, & Kanchan Sehrawat. (2020). The Relationship between HR Expenditure and Firm’s Performance: Case of S&P BSE SENSEX 30 Companies. Global Journal of Enterprise Information System, 9(3), 59-64. Retrieved from https://gjeis.com/index.php/GJEIS/article/view/309
Issue
Vol. 9 No. 3 (2017): Algorithm with EIS is Changing the Mindset and Concept of Ownership of Generation Changers
Section
Case Study Based Papers (CSBP)

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