Effect of the critical human resource attributes on operating performances

Abstract

Purpose This paper aims to explore the relationship between human resource attributes and the operating performances of accounting firms by sampling data from the 2012-2013 Survey Report on Accounting Firms, as compiled by the Financial Supervisory Commission in Taiwan. Design/methodology/approach Multiple regression analysis is conducted to measure operating performances with various measurements, such as operating profits and business diversification. The independent variables include male to female ratio, percentage of senior executives, percentage of employees with higher education backgrounds, organizational vitality, human resource diversity, percentage of employees with certified public accountant (CPA) qualifications and human resource costs (HRCs). The control variables are the firm history, market shares and ownership structures since the inception of the firms. Findings The empirical results regarding the operating profits model suggest that the higher the male to female ratio, the percentage of employees with higher education backgrounds, organizational vitality, human resource diversity, percentage of employees with CPA qualifications and HRCs, the greater the operating profits. Meanwhile, the findings regarding the business diversification model indicate that the higher the male to female ratio, percentage of senior executives and human resource diversity, the greater the business diversification. Originality/value It is intended that the research findings can assist the management of accounting firms to understand the human resource attributes critical to operating performances, which will help to enhance the competitiveness of employees, mitigate the operating risks and improve the operating performances of the firms.