Abstract: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 inves… Show more
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.