Open AccessCapital Structure Impact On The Human Capital Investment: Eastern European Countries Case
Author(s) -
Imen Khouja,
Sina Belkhiria,
Ons Tlili
Publication year - 2021
Publication title -
archives of business research
Language(s) - English
Resource type - Journals
ISSN - 2054-7404
DOI - 10.14738/abr.98.10753
Subject(s) - human capital , investment (military) , probit model , business , physical capital , sample (material) , financial capital , finance , ordered probit , capital (architecture) , economic capital , economics , economic growth , geography , econometrics , politics , political science , law , chemistry , archaeology , chromatography
Among growth factors of a company, its human capital, because of its hardly imitable trait. However, investing in human capital is intangible and risky, which makes its funding arduous. This article considered the impact of the company’s capital structure on the human capital investment decision through training using probit regressions. Among a sample of SMEs from 24 Eastern European countries, the results confirmed that bank loans foster trainings. However, an increase in self-financing slows down such investments.