The Influence of the Value of Human Capital and the Incentive on the Firms Profitability in Indonesias Consumer Goods Industry

Abstract

The purpose of this research is to know what is the influence of value of human capital and incentive on the firm’s profitability which are listed on the Indonesia Stock Exchange (IDX). Value of human capital and Incentive act as independent variables in this research and profitability act as dependent variable. The sample of this research is consumer goods industry in 2011-2013. The samples were selected using purposive sampling method. The hypothesis of this research were tested using multiple linear regression analysis as the statistical method. The results shows that in 2012 and in 2013 value of human capital and incentive significantly influence simultantly to the profitability of company but it is not happened in 2011. Partially, value of human capital significantly influence profitability of company. On the other hand, the other independent variable in this research has no impact on profitability of the company.

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Keywords

: Value of human capital, incentive, profitability.

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