The Impact of Human Capital on Sales Growth and Assets Return among the Companies Listed in Tehran Stock Exchange

Abstract

The aim of this paper is to examine the impact of human capital on value creation of listed companies in Tehran Stock Exchange. In order to measure the value of human capital, Palick (2000) coefficient of human capital was used. Dependent variables of the study consist of changes in net sales (sales growth) of company and return on assets. Therefore, the accruals model is used (Dees et al., 2010). The statistics sample contains the financial statements of 163 companies from various industries from 2007 to 2014. All activities conducted in companies in order to utilize human capital would have the impact on company values. Our results show that human capital efficiency coefficient significantly and positively affect sales growth and return on assets as a measure of value creation in companies.