The Relationship Between Employee Training and Firm Performance in the Light Industry in China

Abstract

The relevant factors of employee training have the relations with firm performances. This study focuses on testing the relationship between two main variables (training frequency and training expenses) of independent variables and the control variables (gender, age and education) of employee characteristics and firm performance of return on assets of year T+1. There are three main hypotheses linked to the conceptual framework of this study: firstly, there is a positive relationship between training frequency and return on assets: secondly, there is a positive relationship between training expenses and return on assets: and return on assets; and thirdly, there is a significant positive relationship between employee characteristics and return on assets. In order to reach to the research objectives of this study, I collected the necessary data and information from firms (N-110 firms) within the administrative area of Jiangsu Province in China. The data information covered the year 2006 to 2008. The data and information processing of this study is to use the collected data and information of two main independent variables and the control variables of employee characteristics happened in year 2006 and 2007 to match the data of return on assets happened in year 2007 and 2008. This study is to using the Multiple Regression Analysis to examine the hypotheses. The results of this study show that the only independent variable of training frequency is significant and positive relationship with return on assets; and the only one control variable of employee characteristics mentioned in this study is significant and negative relationship with return on assets. Finally, the findings of this study suggest that the firms should pay some more attention to frequency of employee training and age structures of employee, when they create relevant strategic plans or decisions for firms’ development.