Measuring Human Capital as a Predictor of Financial Performance: An Evidence from Indian Private Sector Banks

Abstract

The study examines the relationship between cost of human capital and financial performance in the private sector banks of India. The study involved 10 selected private sector banks of India on their capital structure size. The cause and effect relationship was checked by regression model using E-Views 9. Since, the time series data was employed, stationarity of the data was checked in order to avoid spurious regression. The Augmented Dickey – Fuller test was used for unit root testing to check the stationarity. The result of the study revealed that cost of human capital has a significant impact on financial performance of the private sector banks of India.