Human resource quality and firm performance : the role of education in China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Journal / PublicationAsia-Pacific Journal of Accounting and Economics
Online published20 Dec 2022
Publication statusOnline published - 20 Dec 2022
Externally publishedYes


This paper examines the effects of human resource quality (HRQ) on multidimensional firm performance of Chinese listed firms. Consistent with the positive role of education, we find that higher HRQ contributes to Chinese listed firms with higher return on equity (ROE) and higher market to book ratio (MTB). We address endogeneity concerns with change model regressions, instrumental variable methodology and difference-in-difference analysis. The findings are robust to alternative research designs and different subsets of sample firms. Additional analyses show that the HRQ effects on overall performance are channeled by intermediate performance on productivity, innovation, debt financing and analysts following.