Journal de l'économie mondiale

The Impact of Human Capital on Corporate Profitability with Emphasis on Innovation, Knowledge and Employee Satisfaction

Abstract

Mehdi Khazaei

Human capital is a key factor in improving the performance of organizations. Every business must use knowledgeable and experienced employees to increase its profit. In this regard, attracting professional, creative and innovative employees and maintaining them by creating job satisfaction is inevitable. The main purpose of the present study is to investigate the impact of Knowledge, Innovation and Employee satisfaction indicators on the Corporate Profitability. For this purpose, 224 top companies in the world from 2013 to 2019 that were profitable among the top 300 companies each year were selected as the statistical population. IMD digital Competitiveness, Global Entrepreneurship Monitor reports and Fortune site were used to collect the data. Also the data analysis was done according to the panel data method using Stata 15 software. The results shows that in general, there is a positive relationship between Knowledge, Innovation and Employee satisfaction indicators with corporate profitability.