scholarly journals Employee Share Ownership as Moderator of the Relationship between Firm-Specific Human Capital Investments and Organizational Commitment

2008 ◽  
Vol 19 (4) ◽  
pp. 324-339 ◽  
Author(s):  
Eric C.A. Kaarsemaker
Keyword(s):  
Human Capital ◽  
Organizational Commitment ◽  
Capital Investments ◽  
Share Ownership ◽  
Human Capital Investments ◽  
Specific Human Capital ◽  
The Relationship

Promotion Signaling and Human Capital Investments

2020 ◽  
Vol 12 (1) ◽  
pp. 125-155 ◽  
Author(s):  
Michael Waldman ◽  
Ori Zax
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Capital Investments ◽  
Human Capital Investments ◽  
Asymmetric Learning ◽  
Specific Human Capital ◽  
Investment Choices

In a world characterized by asymmetric learning, promotions can serve as signals of worker ability, and this, in turn, can result in inefficient promotion decisions. If the labor market is competitive, the result will be practices that reduce this distortion. We explore how this logic affects human capital investment decisions. We show that, if commitment is possible, investments will be biased toward the accumulation of firm-specific human capital. We also consider what happens when commitment is not possible and show a number of results including that, if investment choices are not publicly observable, choices are frequently efficient. (JEL D82, J24, J31, M12, M51)

General versus Specific Skills in Labor Markets with Search Frictions and Firing Costs

2006 ◽  
Vol 96 (3) ◽  
pp. 811-831 ◽  
Author(s):  
Etienne Wasmer
Keyword(s):  
Human Capital ◽  
Labor Markets ◽  
Pure Strategy ◽  
Employment Protection ◽  
Capital Investments ◽  
High Turnover ◽  
Firing Costs ◽  
General Skills ◽  
Human Capital Investments ◽  
Specific Human Capital

Human capital investments are not independent of the aggregate state of labor markets: frictions and slackness of the labor market raise the returns to specific human capital investments relative to general investments. We build a macroeconomic model with two pure strategy regimes. In the pure G-regime, workers invest in general skills. This occurs when they face high turnover labor markets and in the absence of employment protection. The pure 5-regime in which workers invest in skills specific to their job appears when employment protection is high enough. Implications for a characterization of Europe-United States differences are provided in conclusion.

Why do firms adopt employee share ownership? Bundling ESO and direct involvement for developing human capital investments

2015 ◽  
Vol 37 (3) ◽  
pp. 296-313 ◽  
Author(s):  
Loris Guery
Keyword(s):  
Human Capital ◽  
Employee Motivation ◽  
Future Research ◽  
Capital Investments ◽  
Content Type ◽  
Share Ownership ◽  
Employee Competencies ◽  
Hr Managers ◽  
The Uk ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between employee share ownership (ESO) and employer-provided training. To be more specific, as both ESO and involvement practices can contribute to developing human capital, the paper addresses the question of whether they are substitutes or complements in the relationship with training. Design/methodology/approach – The theoretical hypotheses are tested using the French nationally representative establishment-level survey, REPONSE, which is similar to the British WERS. The sample consists of 1,523 establishments. Findings – The results are consistent with studies conducted elsewhere (e.g. in the UK) and provide novel findings, thereby suggesting a complementarity between ESO and involvement practices with bundles of practices becoming increasingly more complex as training expenditures increase. Research limitations/implications – To provide further insights, future research that uses more precise information regarding ESO plans is needed. Practical implications – Results can provide HR managers with valuable information regarding the organisational characteristics necessary to ensure a fertile ground for their training expenses. Originality/value – The paper reflects a growing awareness that human capital development and share ownership plans may be related and that this relationship might be a more compelling explanation for share ownership plans than the standard agency theory. The contribution of ESO plans to the development of employee competencies may be at least as important as their possible effects on employee motivation and effort.

Bank vs. Bond Finance

2015 ◽  
pp. 289-315 ◽  
Author(s):  
Wolfgang Breuer ◽  
Benjamin Quinten ◽  
Astrid J. Salzmann
Keyword(s):  
Future Orientation ◽  
Slight Modification ◽  
Research Field ◽  
Cultural Value ◽  
Relationship Lending ◽  
Capital Investments ◽  
Country Analysis ◽  
Human Capital Investments ◽  
Specific Human Capital ◽  
The Relationship

This chapter enhances the growing research field of Cultural Finance by analyzing the relationship between cultural value types—in particular, Autonomy and Embeddedness—and the corporate debt choice of either bank or bond financing. The authors derive their hypotheses from a slight modification and re-interpretation of the Chemmanur and Fulghieri (1994) approach of “relationship lending.” Referring to the importance of specific human capital investments and individuals' future orientation, they show that firms in autonomy cultures tend toward bank finance, whereas firms in embeddedness cultures show a preference for financing by issuing bonds. In a cross-country analysis with 71 countries, the authors find empirical evidence for their established hypotheses.

scholarly journals Human capital investments as sources of skills: An analysis at different entrepreneurship phases

2017 ◽  
Vol 9 (1) ◽  
pp. 12
Author(s):  
M. Anastacia Mamabolo ◽  
Myres Kerrin ◽  
Tumo Kele
Keyword(s):  
Human Capital ◽  
Work Experience ◽  
Formal Education ◽  
Capital Investments ◽  
Online Questionnaire ◽  
Capital Theory ◽  
Specific Investments ◽  
New Business ◽  
Human Capital Investments ◽  
Specific Human Capital

<strong>Background:</strong> Entrepreneurs need entrepreneurial skills to run their businesses. Skills can come from various sources, and the usage of the sources of skills can vary according to the different entrepreneurship phases.<p><strong>Aim:</strong> Adopting a human capital theory perspective, this study determined the specific human capital investments as sources of skills needed by entrepreneurs across the different entrepreneurship phases. The sources of skills included work experience, formal education, entrepreneurship education and entrepreneurship experience.</p><p><strong>Setting:</strong> Entrepreneurs at the different entrepreneurship phases which are nascent (entrepreneurs with ventures less than 3 months in existence), new business (entrepreneurs with ventures with more than 3 months but less than 3.5 years in existence) and established business (entrepreneurs with ventures more than 3.5 years in existence).</p><p><strong>Method:</strong> The study employed a survey research design. An online questionnaire was used to collect the data.</p><p><strong>Results:</strong> The results show that the sources of skills are used differently across the entrepreneurship phases. As entrepreneurs start businesses, in the nascent phase, the use of human capital investments (especially formal education) as a source of skills declines, thus creating a need to acquire more entrepreneurship-specific investments. In addition to acquiring skills from human capital investments, entrepreneurs learn skills from people in their social networks and self-taught skills which are used differently across the different entrepreneurship phases.</p><p><strong>Conclusion:</strong> The findings indicate that the human capital investments are dynamic and change over time as the entrepreneurship phases unfold. Because there are different sources of skills for each entrepreneurship phase, entrepreneurs need to be treated according to their phases.</p>

Cut me some slack! An exploration of slack resources and technology-mediated human capital investments in entrepreneurship

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jason Jabbari ◽  
Stephen Roll ◽  
Sam Bufe ◽  
Yung Chun
Keyword(s):  
Human Capital ◽  
Online Learning ◽  
Skill Development ◽  
Entrepreneurial Intentions ◽  
Capital Investments ◽  
Slack Resources ◽  
Content Type ◽  
Gig Economy ◽  
Human Capital Investments ◽  
The Relationship

PurposeIn this paper, the authors explore the relationship that slack resources and technology-mediated human capital investments can have on individuals’ entrepreneurial intentions. Focusing on human capital investments that individuals make through education and work, the authors analyze the relationship among formal online learning opportunities, informal skill development in the gig economy and entrepreneurial intentions.Design/methodology/approach Leveraging a novel dataset that merges administrative tax data with a survey of over 8,528 low- and moderate income (LMI) households, this study uses machine learning and propensity score weighting to examine the likelihood that individuals who make these technology-mediated human capital investments will have increased odds of entrepreneurial intentions when compared to similar individuals who do not make these investments.Findings The authors find that both partaking in online learning and working in the gig economy are significantly associated with increased odds of entrepreneurial intentions. Furthermore, through a variety of robustness and mechanism checks, the authors find that technology-mediation is an important factor in these relationships and that informal skill development and career preparation is one way in which gig employment influences entrepreneurial intentions.Research limitations/implications As the study’s data come from a cross-sectional survey, the authors cannot make causal inferences about the relationship between online learning, gig employment and entrepreneurial intentions. Thus, future research should explore sources of longitudinal data.Practical implications This study has practical implication for individuals and policymakers that seek to increase entrepreneurship among LMI households.Originality/value Despite a wealth of research on the relationships among slack resources, technology and innovation at the firm level, there is little of this research at the individual level – especially among LMI individuals. The authors begin to fill this important gap.

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