The nexus between human capital efficiency and financial performance: a case of Malaysian plantation sector / Abdul Mutalib Azman ... [et al.]

This research discusses “The Impacts of Human Capital Efficiency on Financial Performance in the Malaysian Plantation Sector," which seeks to investigate the correlation between human capital efficiency and financial performance within the Malaysian plantation sector. The study employs a sample of twenty (20) Malaysian Plantation companies using STATA 14 for panel data analysis. The results demonstrate a strong correlation between human capital efficiency and financial performance. Companies that have higher human capital efficiency tend to have better financial performance, as indicated by metrics such as return on assets, asset turnover ratio, and leverage. These findings highlight the significance of efficiently overseeing and utilizing human resources to influence financial results in the plantation sector. The study focuses on the importance of investing in the development and optimization of human capital to improve financial performance. Additional research is advised to investigate other factors that may impact on this association and to evaluate the applicability of the findings to different nature of businesses and environments.