Corporate Governance, Human Capital Resources, and Firm Performance: Exploring the Missing Links

45(4) Journal of General Management 192-205

Centre for Chinese and Comparative Law Research Paper

14 Pages Posted: 16 Dec 2019 Last revised: 30 Apr 2021

See all articles by Kaouthar Lajili

Kaouthar Lajili

University of Ottawa - Faculty of Administration

Lauren Yu-Hsin Lin

City University of Hong Kong (CityU) - School of Law; City University of Hong Kong (CityU) - Centre for Chinese & Comparative Law

Anoosheh Rostamkalaei

affiliation not provided to SSRN

Date Written: July 20, 2020

Abstract

This study explores the associations between human capital resources, firm performance, and corporate governance mechanisms. Based on the survey results of the ‘‘50 most attractive
employers’’ conducted by Universum Global 2010, human resource, performance, and governance data was collected for the period from 2007 to 2011. Drawing on the strategic human capital and resource management, international governance, and organizational literature, this study
examines the extent to which corporate governance mechanisms moderate the relationships between firm performance and human capital resources and posits that human resource performance is positively associated with corporate governance mechanisms that support and enhance strategic human resource management policies. Panel regression analyses
are conducted to test the study’s hypotheses. The results show that human capital resources are positively related to firm performance, and that some corporate governance mechanisms may negatively affect performance when interacted with human capital variables. Furthermore, human resource performance is significantly related to some governance mechanisms, with interaction effects between human capital and other organizational attributes showing differential
impacts. Overall, the results support a contingency-based view of strategic human resource management in the context of large and attractive global employers and highlight the importance of governance design in supporting investments and deploying human resources and capabilities at the firm and industry levels and across national boundaries.

Keywords: Human Capital Resources, Corporate Governance, Human Resource Performance, Most Attractive Employer Survey, International Governance

JEL Classification: G34

Suggested Citation

Lajili, Kaouthar and Lin, Lauren Yu-Hsin and Rostamkalaei, Anoosheh, Corporate Governance, Human Capital Resources, and Firm Performance: Exploring the Missing Links (July 20, 2020). 45(4) Journal of General Management 192-205, Centre for Chinese and Comparative Law Research Paper, Available at SSRN: https://ssrn.com/abstract=3494977 or http://dx.doi.org/10.2139/ssrn.3494977

Kaouthar Lajili

University of Ottawa - Faculty of Administration ( email )

136 Jean-Jacques Lussier
Ottawa, Ontario K1N 6N5
Canada
613-562-5800, ext. 4736 (Phone)
613-562-5164 (Fax)

Lauren Yu-Hsin Lin (Contact Author)

City University of Hong Kong (CityU) - School of Law ( email )

Tat Chee Avenue
Kowloon
Hong Kong

HOME PAGE: http://www.cityu.edu.hk/slw/about-school/our-people/dr-lin-lauren-yu-hsin

City University of Hong Kong (CityU) - Centre for Chinese & Comparative Law

83 Tat Chee Avenue
Room P5300, 5th Floor, Academic 1
Kowloon Tong
Hong Kong

Anoosheh Rostamkalaei

affiliation not provided to SSRN

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