A study of relation between labor force productivity indexes and total productivity of production factors with net profit of registered private firms in Iran’s Stock Exchange

In current era achieving economic growth by means of enhancing productivity is among most important economical goals of all countries. Considering these goals, this study will examine the performance of labor force productivity indicators with net profit of registered companies in Iran’s Stock Market Exchange. Taking into account that labor force is among the most important institutions of production factors, so this labor force productivity output, is in fact showing the optimal usage of labor force factors in productivity that can be influential in profitability of business entities. In line with these objectives, in order to determine the relationship between labor force productivity and net profit –labor force production indicators included (labor force productivity, total value output of labor force and hours of education per person )- were used as independent variables and net profit was used as dependent variable. Population of the study included 19 firms from five different active industries registered in Iran’s Stock Market Exchange. To determine relations between variables, correlations, linear regression and logarithms were used. Results showed straight and positive correlation between labor force productivity indicators and net profit with 95% confidence level. And regression model shows with each one unit increase in total value output of labor force logarithm, the value of net profit logarithm increased 0/042 in average. And other labor force productivity indicators showed straight and positive correlation with net profit. There is also straight significant relationship between all production factors and net profit.

Keywords:

labor force productivity indicators , net profit , total value output of labor force , hours of education per person