Human Resource Slack, Human Capital Risk, and Firm Performance: Should Firms Grow Employees Faster Than Sales?

May 14, 2015
Varkey Titus Jr. (University of Nebraska) and Theresa M. Welbourne (CEO) utilize a sample of firms that are at a critical moment of growth: after going public. Analysis of 1,437 firm-year observations comprised of 330 initial public offerings (IPO) tracked over the course of five years indicates that the relationship between HR slack and profitability is curvilinear (inverted-U shape).

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