The Impact of Human Resource Cost on the Profitability of Firms: Empirical Evidence of Selected Listed Companies on Ghana Stock Exchange

Author(s)

Vincent Nana Yaw Osei-Owusu , LI Kaodui ,

Download Full PDF Pages: 188-197 | Views: 560 | Downloads: 162 | DOI: 10.5281/zenodo.4990817

Volume 9 - October 2020 (10)

Abstract

the study’s objective was to assess the impact of human resource cost thus staff cost on profitability of firms. The scope of the study was listed companies on Ghana Stock Exchange and it selected 42 listed companies as its sample for a period five years from 2014 to 2018. The study employed non-probability sampling technique thus convenient sampling to select the companies used due to availability of data. As the study used exploratory method, it used panel data methodologies to arrive at its conclusion. These methodologies used are unit root, cointegration test, correlation matrix, censored tobit regression method and robust least square regression method. In summary, the study found out that human resource cost thus staff cost negatively relate to profitability of companies in Ghana statistically. As the argument as to whether human resources of organizations should be considered as assets in order to value their productivity rather than being part of organizations expenditures which one way or the other affects their profitability

Keywords

Human resource cost, Profitability, Ghana Stock Exchange, Censored tobit regression, Robust least square

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