The Impact of Human Capital Investment on the Financial Performance of Selected BSE-Listed Companies

This study explores the impact of Human Capital Investment (HCI) on the financial performance of the top 25 companies listed on the Bombay Stock Exchange (BSE) over a ten-year period from 2014-15 to 2023-24. Financial performance is measured using three key indicators: Return on Assets (ROA), Return on Equity (ROE), and Return on Capital Employed (ROCE). Using regression and correlation analysis, the study identifies a significant positive relationship between HCI and all three financial metrics, with the strongest influence observed on ROCE. The findings suggest that companies investing consistently in employee training, development, and welfare tend to achieve higher profitability and operational efficiency. This underscores the strategic value of human capital as a critical asset in enhancing corporate performance. The study contributes to the growing body of evidence supporting the integration of HCI into core business strategy. It offers practical implications for corporate managers and policymakers to design and implement policies that prioritize human capital development as a means to achieve long-term financial sustainability and competitive advantage.