Impact of Human Resource Information System on Firm Financial Performance

Abstract

This study analyzed the impact of the applications of human resource information systems (HRIS) on firms’ financial performance. Performance estimation models were developed on the basis of five years performance related data extracted from annual reports of total 41 (89%) banks operated under four strata: state-owned commercial (9%), specialized (6%), private commercial (63%), and foreign commercial banks (11%) in Bangladesh while multivariate analysis of covariance (MANCOVA) was tested to examine the varied corporate financial performance according to ownership patterns. The study found direct and positive relations of HRIS applications on the firms’ financial results. However, the corporate performance does significantly not vary according to the ownership patterns. Moreover, the findings of the study may lead human resource (HR) professionals and other stakeholders to enhance their financial intelligence about its applications in business which may eventually enable them to be strategic partners in the acute global market environment.