TY - JOUR
T1 - Evaluation of personnel-adjusted added value
T2 - Estimating its relationship with future profit in Japan
AU - Iwamoto, Hiroki
AU - Suzuki, Hideo
N1 - Funding Information:
The authors received no direct funding for this research.
Publisher Copyright:
© 2021 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
PY - 2021
Y1 - 2021
N2 - Personnel-adjusted added value (PAV) is an index to measure human resource management for internal purposes. In this study, the possibilities and limitations of PAV using external estimates are investigated. To measure the effectiveness of PAV, it is compared with the general added value. This proves the effect of the personnel adjustment. The relationship between future performance and PAV (and added value), including other control variables, are statistically analysed by hierarchical linear modelling. The essence of PAV is to separate the basic labour costs from the company-specific personnel costs. To calculate PAV from outside an enterprise, the basic labour costs should be estimated. For this purpose, in addition to financial data, this study uses survey data on recruitment and employment in Japan. Statistical analysis is applied to the 2008–2016 longitudinal company data of 569 Japanese companies. We find that PAV, a management indicator that includes the adequacy of human resource management, is a useful factor related to future performance.
AB - Personnel-adjusted added value (PAV) is an index to measure human resource management for internal purposes. In this study, the possibilities and limitations of PAV using external estimates are investigated. To measure the effectiveness of PAV, it is compared with the general added value. This proves the effect of the personnel adjustment. The relationship between future performance and PAV (and added value), including other control variables, are statistically analysed by hierarchical linear modelling. The essence of PAV is to separate the basic labour costs from the company-specific personnel costs. To calculate PAV from outside an enterprise, the basic labour costs should be estimated. For this purpose, in addition to financial data, this study uses survey data on recruitment and employment in Japan. Statistical analysis is applied to the 2008–2016 longitudinal company data of 569 Japanese companies. We find that PAV, a management indicator that includes the adequacy of human resource management, is a useful factor related to future performance.
KW - Personnel-adjusted added value
KW - human resource management
KW - intellectual capital
KW - key performance indicator
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U2 - 10.1080/23322039.2021.1954764
DO - 10.1080/23322039.2021.1954764
M3 - Article
AN - SCOPUS:85111469878
SN - 2332-2039
VL - 9
JO - Cogent Economics and Finance
JF - Cogent Economics and Finance
IS - 1
M1 - 1954764
ER -