IMPACT OF EMPLOYEE COST ON MARKET CAPITALIZATION A STUDY ON NIFTY COMPANIES

Abstract

The purpose of the study is to examine the impact of human resource on value of the firms of both manufacturing firms and service-rendering firms listed in NSE. The companies listed on National Stock Exchange (NSE) i.e., NIFTY companies have taken to achieve the objective of the study. The desired data have extracted for the period of 2018-2019. But interesting it is found that total employee costs significantly contribute towards market capitalization for the manufacturing firms. Whereas, that total employee costs do not significantly contribute towards market capitalization for the services rendering firms. It is recommended that the employee satisfaction is low in case of services rendering firms. These firms should give more attention towards the betterment of their employees that in return will increase their market capitalization.