THE RELATIONSHIP BETWEEN HUMAN CAPITAL INVESTMENT, NON- PERFORMING FINANCING AND PROFITABILITY

Purpose of the study: This research aims to identify the influence of good corporate governance (GCG) mechanisms and human capital investment (HCI) on non-performing financing (NPF) and profitability. In addition, we examine the relationship between NPF and profitability. Methodology: The research samples are commercial Islamic banks in Indonesia (13 banks) that were determined by using a purposive sampling method. The data are collected from the banks’ financial statements and GCG reports, from 2012 to 2016. Structural Equation Modeling (SEM) was employed to analyze the data. Main Findings: Our study shows that the number of directors a bank has significantly affected NPF but does not affect profitability, while the size of the independent Board of Commissioners (BoC) has a significant influence on NPF and profitability. Sharia Supervisory Board also has a role in improving profitability. HCI has a significant effect on profitability, but it does not affect NPF. Applications of this study: Islamic banks are urged to improve their implementation of GCG, especially for their ratio of independent commissioners and HCI expenditure. Independent commissioners and HCI are able to reduce the level of NPF and improve performance. HCI expenditure should be viewed as an investment by the bank, and not as a cost. Investment in HCI is proven to improve profitability. Novelty/Originality of this study: The use by researchers of the HCI variable to influence NPC is still limited. The reason is that the main source of a bank’s income is from financing (loans), so the highest risk for the bank is NPF. To reduce NPF, the bank’s employees must have the ability to manage risk.

Download Full-text

EFFECT OF HUMAN CAPITAL INVESTMENT ON ORGANIZATIONAL PERFORMANCE

Social Behavior and Personality An International Journal ◽

10.2224/sbp.2008.36.8.1011 ◽

2008 ◽

Vol 36 (8) ◽

pp. 1011-1022 ◽

Cited By ~ 10

Author(s):

I-Ming Wang ◽

Chich-Jen Shieh ◽

Fu-Jin Wang

Keyword(s):

Human Capital ◽

Organizational Culture ◽

Organizational Performance ◽

Organizational Identification ◽

Capital Investment ◽

Human Capital Investment ◽

Training And Development ◽

The Other ◽

Organizational Value ◽

The Relationship

Based on 150 valid questionnaires, an investigation was undertaken through correlation analysis and multiple regression analysis to examine the following: the correlation between human capital investment and organizational performance, between organizational culture and human capital investment, between organizational culture and organizational performance, and finally the effect of organizational culture on the correlation between human capital investment and organizational performance. The relationship between staff training and development and internal trust relations positively correlated with organizational value. That same relationship was enhanced by organizational identification. On the other hand, the correlation between the 3 dimensions of organizational performance and the other 2 dimensions of human capital investment (staff recruitment; staff inspiration) was not influenced by the presence of either organizational identification or organizational value.

Download Full-text

EXPLORING THE RELATIONSHIP BETWEEN HUMAN RESOURCES MANAGEMENT PRACTICES IN THE HOSPITALITY SECTOR AND SERVICE INNOVATION IN JORDAN: THE MEDIATING ROLE OF HUMAN CAPITAL

GeoJournal of Tourism and Geosites ◽

10.30892/gtg.35231-678 ◽

2021 ◽

Vol 35 (2) ◽

pp. 507-514

Author(s):

Rami MAHMOUD ◽

◽

Ahmad A. AL-MKHADMEH ◽

Omar A. ALANANZEH ◽

Ra’ed MASA’DEH ◽

...

Keyword(s):

Human Capital ◽

Human Resources ◽

Structural Equation ◽

Management Practices ◽

Human Resources Management ◽

Service Innovation ◽

Equation Modeling ◽

Resources Management ◽

Hospitality Sector ◽

The Relationship

This study is aimed to explore the relationship between Human Resources Management (HRM) and innovation in services and whether such a relationship is mediated by human capital. The data was gathered from the hospitality sector in Jordan. To evaluate the proposed hypotheses, Structural Equation Modeling (SEM) was used via partial modeling of least squares. The research findings provide clear evidence that the Service Innovation of Jordan's hospitality was positively influenced by HRM activities and human resources. The results show many practical and theoretical effects. Results will help the hospitality sector grow creativity in their services by HRM practices and establish proper use of human capital in their employees through innovation cults. This is one of the few studies that studied the relationship between HRM activities and the sufficient of human capital on hospitality in a developing country, Jordan.

Download Full-text

HUMAN CAPITAL INVESTMENT (HCI) DETERMINANTS AFFECTING THE INSTITUTION’S PERFORMANCE: THE PRACTICALITY OF PARTIAL LEAST SQUARES STRUCTURAL EQUATION MODELLING (PLS-SEM) APPROACH

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2020.8221 ◽

2020 ◽

Vol 8 (2) ◽

pp. 175-183

Author(s):

Farahiyah Akmal Mat Nawi ◽

Abdul Malek A. Tambi ◽

Muhammad Faizal Samat ◽

Julaina Baistaman

Keyword(s):

Higher Education ◽

Human Capital ◽

Structural Equation Modelling ◽

Capital Investment ◽

Structural Equation ◽

Human Capital Investment ◽

Coefficient Of Determination ◽

Performance Excellence ◽

Survey Tool ◽

Equation Modelling

Purpose of the study: This paper aimed to assess the analysis of the role of human capital investment (HCI) determinants and its remarkable contribution towards the education institution's performance by adapting the Malcolm Baldridge Criteria for Performance Excellence. Methodology: This research adopted a quantitative study and a survey tool comprises of sixty items with seven Likert scale was utilized as an instrument to assemble data from 309 lecturers in UiTM Kelantan. Next to test the research hypothesis data were then analyzed using the Structural Equation Modelling approach on the SmartPLS3 platform. Main Findings: The analysis demonstrated the influences of HCI determinants towards the UiTM performance. The coefficient of determination (R2) value of 66.9% suggested that the variance of institution performance could moderately be explained by the observed variables, namely knowledge, skill, and training. The result also indicates the highest positive significant value for skill towards performance with β=0.283, t-value= 1.981 and p<0.005. It is proven that a persistent skill development significantly contributes to the performance. Applications of this study: The research finding is useful to help the Ministry of Higher Education (MOE) in Malaysia to identify the relevant determinants in improving human capital quality. Novelty/Originality of this study: There were a lot of studies that were conducted involving higher education in Malaysia. But the only limited number of studies was conducted by scholars in assessing the main contribution of human capital investment factors towards the institution's success.

Download Full-text

Hubungan Siklus Hidup Perusahaan dan Manajemen Laba: Good Corporate Governance sebagai Variabel Moderating

JIATAX (Journal of Islamic Accounting and Tax) ◽

10.30587/jiatax.v3i2.2340 ◽

2020 ◽

Vol 3 (2) ◽

pp. 158

Author(s):

Suwarno Suwarno

Keyword(s):

Corporate Governance ◽

Life Cycle ◽

Earnings Management ◽

Structural Equation ◽

Sampling Technique ◽

Life Cycles ◽

Equation Modeling ◽

Management Actions ◽

Good Corporate Governance ◽

The Relationship

The purpose of this study is to determine the relationship of the corporate life cycles to earnings management and analyze Good Corporate Governance to moderate the relationship between the corporate life cycles with earnings management. This research use as quantitative approach using secondary data. The sampling technique uses purposive sampling method. The total sample used in this study were 75 company samples. The analysis technique used in this study is the Structural Equation Modeling-Partial Leasr Square (SEM-PLS) method using WarpPLS Version 5.0 Software. The results showed that the company’s life cycle variables influence earnings management and GCG can moderate the company’s life cycle relationship with earnings management so as to waked earnings management actions.

Download Full-text

Enhancing Human Capital Investment - Key to Unlock China's Economic Plight of Unbalanced Development

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.347-353.2745 ◽

2011 ◽

Vol 347-353 ◽

pp. 2745-2748

Author(s):

Yuan Zhang

Keyword(s):

Economic Growth ◽

Human Capital ◽

Capital Investment ◽

Human Capital Investment ◽

Physical Capital ◽

Investment Strategy ◽

Capital Shortage ◽

Investment Structure ◽

Sustainable Economic Growth ◽

The Relationship

In recent years, it is very important for China to maintain the strong and sustainable economic growth, and we believe enhancing human capital investment is the key. According to the statistics, China's current human capital investment has fallen into the low-level trap, which means that the economic growth heavily depends on labor-intensive and resource-driven investment, and the relationship between human and physical capital investment becomes imbalanced. In addition, the coexistence of human capital shortage and employment pressure, the mismatch between human capital investment structure and talent demand, and insufficient human capital investment caused by unfair income distribution are becoming more and more serious. We advise a re-examination of our human capital investment strategy as the main policy to solve the problems.

Download Full-text

Retailers' CSR: the effects of legitimacy and social capital

International Journal of Retail & Distribution Management ◽

10.1108/ijrdm-10-2012-0092 ◽

2014 ◽

Vol 42 (2) ◽

pp. 131-150 ◽

Cited By ~ 24

Author(s):

Jiyoung Kim ◽

Sejin Ha ◽

Clarissa Fong

Keyword(s):

Social Capital ◽

Capital Investment ◽

Structural Equation ◽

Practical Implication ◽

Group Analysis ◽

Moderating Effect ◽

Equation Modeling ◽

Content Type ◽

The Social ◽

The Relationship

Purpose – This study aims to investigate consumer perception of community and employee oriented CSR program, and examine how retailers' CSR activities lead to social (i.e. legitimization) and financial support. Further, by taking the social context into account, this research examine the moderating effect of consumer engagement in community social capital on the relationship between perceived retailers' CSR action and retailer legitimization. Design/methodology/approach – Pre-test was conducted with 144 students to validate the measurement model. A total of 220 responses from US consumers were used for the main-test, and multiple group analysis in structural equation modeling (SEM) was employed in order to test the structural model. Findings – The result indicates that when retailers are perceived as adhering to social norms through their CSR actions, they gain legitimacy and support from the consumers within the community. Further, consumer social capital moderates the relationship between perceived CSR and retailer legitimacy. Practical implications – Findings of this research can provide retail marketers with practical implication in developing their CSR strategy catering to the community members. Understanding consumers with higher level of social capital investment will increase the capability and effectiveness of the retailers' CSR activities. Originality/value – This research offers theoretical contributions to the current research stream of CSR studies by testing the moderating effect of consumers' engagement in the social environment on consumers' legitimization and support toward retailers that perform CSR activities. This study also provides new perspective on assessing the outcome of retailers' CSR actions by focusing on both social and financial dimensions.

Download Full-text

Structural Equation Modelling Using AMOS based Empirical Analysis: Direct and Indirect Effects of Job Performance Factors among Jordanian Islamic Banks

Webology ◽

10.14704/web/v18i2/web18366 ◽

2021 ◽

Vol 18 (2) ◽

pp. 955-971

Author(s):

Ghaith Abdulraheem Ali Alsheikh ◽

Zainudin Awang ◽

Belal Yousuf Barhem ◽

Asaad Alsakarneh ◽

Bilal Eneizan ◽

...

Keyword(s):

Job Performance ◽

Structural Equation ◽

Banking Sector ◽

Primary Data ◽

Equation Modeling ◽

Islamic Banks ◽

Moderating Effects ◽

Performance Factors ◽

Equation Modelling ◽

The Relationship

In order to ensure that the Islamic bank is staying competitive, job performance plays a significant role to ensure that the organization could be successful in the future. This study was designed to investigate the effect of psychological empowerment (PE), Knowledge sharing (KS) on job performance (JP) among employees working in Islamic banking sector in Jordan. The study further tests the moderating effects of Islamic work ethics (IWE) on the model. The data were collected using a questionnaire, as the instrument for the primary data collection, with total collected back responses of 357 from Islamic banks employees who have actually participated in the research. Structural equation modeling technique was used to fully analyze the data in order to determine what level of the relationship between PE, KS, IWE and JP were existed. The findings confirm the hypothesis that PE and KS positively effects on JP. Additionally, IWE full moderate between PE and JP. The latter effect is also significant but IWE partial moderate between KS and JP. The findings triggers future researchers to conduct similar studies for other sectors in Jordan, possibly in different contexts and perspectives.

Download Full-text

Impacts of service quality on future intentions of loan purchase under the mediating of borrowers’ bank image and moderating Fatwa and Sharia supervisory board reputation

International Journal of ADVANCED AND APPLIED SCIENCES ◽

10.21833/ijaas.2021.04.005 ◽

2021 ◽

Vol 8 (4) ◽

pp. 29-43

Author(s):

Mohamed Salih Yousif Ali ◽

Keyword(s):

Service Quality ◽

Supervisory Board ◽

Purchase Intentions ◽

Bank Loan ◽

Equation Modeling ◽

Islamic Banks ◽

Quality Dimensions ◽

Service Quality Dimensions ◽

The Relationship

The purpose of this study is to test the moderating role of fatwa and Sharia supervisory board unit reputation in the relationship between service quality dimensions and borrowers’ bank image. It will also assess the mediating role of borrowers’ bank image in the relationship between service quality dimensions and future purchase intentions of loans. Questionnaire surveys are used to collect data by convenience sampling from the loan borrowers in Saudi Arabian Islamic banks. Structural equation modeling was performed to analyze 370 usable responses. The study finds that service quality dimensions have varying effects on loans future purchase intentions, the borrowers’ bank image fully and partially mediates the relationship between service quality dimensions and loans future purchase intentions (LFPI), and the fatwa and Sharia supervisory board reputation moderating the influence of service quality responsiveness on borrowers’ bank image. Bank image and fatwa and Sharia supervisory board reputation influences on future purchase intention were assessed by personal loan borrowers, and future studies could be conducted on other bank loan borrowers (corporate) according to their difference in the goal of loaning. The bank managers should be aware of the fatwa board's reputation influences on borrowers’ bank image and loan future purchase intentions. This research adds to the existing body of reputation and image management literature in the Islamic banking context by comprehending how specified service quality dimensions can improve the borrowers’ bank image and increase loan purchase intentions. The study is the first attempt to discover empirical support to the role of fatwa and Sharia supervisory board reputation in increasing the bank’s image and loans future purchase intentions at Islamic banks.

Download Full-text