The Impact Of Human Capital On The Financial Performance of Banks: An Applied Study of a Sample of Algerian commercial Banks During The Period 2010-2020

Abstract

This study aims to find out the extent to which human capital can explain the financial performance of Algerian commercial banks by examining the impact of the human capital variable on the financial performance variable that complies with the return on assets (ROA), in addition to using the control variables (bank size and debt-to-equity ratio). And by using Panel data during the period 2010–2020 and analyzing the fixed effects model, the study reached the following most important
results: There is a positive and significant relationship between human capital and the financial performance of Algerian commercial banks during the study period, and the size of the bank has a statistically significant and negative impact on financial performance. For Algerian commercial banks,
while there is no statistically significant relationship between the effect of the ratio of debt to equity on financial performance and the existence of a long-term equilibrium relationship between the variables of the study heading from human capital to return on assets (financial performance), the study recommended the necessity of adopting a resource approach that relies on intangible resources, especially the human element