Investigating the Relationship of Human Resources Value & Bankruptcy Forecasting for Companies Listed in Tehran Stock Exchange

Mehdipour Picha, Sahar; Alizadeh, Mohsen; Yahyazadehfar, Mahmoud

doi:10.22080/shrm.2021.3773

Investigating the Relationship of Human Resources Value & Bankruptcy Forecasting for Companies Listed in Tehran Stock Exchange

Document Type : Original Article

Authors

¹ graguated in emba

² university of mazandaran

10.22080/shrm.2021.3773

Abstract

All organizations seek to improve their performance, and human resource management can be considered as a tool for competitive advantage and affect organizational results and performance. The purpose of this article is to investigate the relationship between the value of human resources and predicting the bankruptcy of companies listed on the Tehran Stock Exchange. For this purpose, the hypothesis of human resources value is related to the prediction of bankruptcy developed and to test it, the statistical method of linear regression has been used. Information of 73 companies listed on the Tehran Stock Exchange during the period 2011 to 2020 has been collected. The Altman model was also used to measure bankruptcy risk, and the Pulic's human capital efficiency formula was used to measure the value of human resources. Data analysis was also performed by Excle and Eviews software. The results of the analysis show that there is a significant negative relationship between the human resources value and the risk of corporate bankruptcy. Given the negative relationship between the human resources value and bankruptcy risk, it can be concluded that human resources are a vital factor in improving financial and organizational performance and as a key component of value creation, increase performance and ultimately lead to better financial performance.

Keywords

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