Distortion between Economic and Financial Performance. Does the Human Capital Matter?

This paper focuses on and compares two specific definitions of performance: economic and financial, with the aim to provide evidence that supports the distinctions between both definitions. Relying on a Belgian sample consisting of 14,135 firms, our results show that one specific variable deserves t...

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Bibliographic Details
Main Authors: Loredana CULTRERA, Guillaume VERMEYLEN
Format: Article
Language:English
Published: Sprint Investify 2017-08-01
Series:Expert Journal of Economics
Subjects:
Online Access:http://economics.expertjournals.com/23597704-507/
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spelling doaj-b18de91c873244b18cb1d1bb8a9b70f52020-11-25T00:32:45ZengSprint InvestifyExpert Journal of Economics2359-77042017-08-01525361Distortion between Economic and Financial Performance. Does the Human Capital Matter?Loredana CULTRERA0Guillaume VERMEYLEN1University of Mons - Warocqué School of Business and Economics, BelgiumUniversity of Mons - Warocqué School of Business and Economics, BelgiumThis paper focuses on and compares two specific definitions of performance: economic and financial, with the aim to provide evidence that supports the distinctions between both definitions. Relying on a Belgian sample consisting of 14,135 firms, our results show that one specific variable deserves to be questioned: the worker’s level of education. On one hand, it seems that the workers’ level of education has a positive impact on economic performance; namely, the more the firms hire highly educated workers, the more productive it is. On the other hand, it seems that the effect is entirely the opposite when the financial performance is taken into account. In this case, the more the firms rely on highly educated workers, the less it is performing in a competitive manner.http://economics.expertjournals.com/23597704-507/Financial PerformanceFirm PerformancePanel dataEconomic Performance
collection DOAJ
language English
format Article
sources DOAJ
author Loredana CULTRERA
Guillaume VERMEYLEN
spellingShingle Loredana CULTRERA
Guillaume VERMEYLEN
Distortion between Economic and Financial Performance. Does the Human Capital Matter?
Expert Journal of Economics
Financial Performance
Firm Performance
Panel data
Economic Performance
author_facet Loredana CULTRERA
Guillaume VERMEYLEN
author_sort Loredana CULTRERA
title Distortion between Economic and Financial Performance. Does the Human Capital Matter?
title_short Distortion between Economic and Financial Performance. Does the Human Capital Matter?
title_full Distortion between Economic and Financial Performance. Does the Human Capital Matter?
title_fullStr Distortion between Economic and Financial Performance. Does the Human Capital Matter?
title_full_unstemmed Distortion between Economic and Financial Performance. Does the Human Capital Matter?
title_sort distortion between economic and financial performance. does the human capital matter?
publisher Sprint Investify
series Expert Journal of Economics
issn 2359-7704
publishDate 2017-08-01
description This paper focuses on and compares two specific definitions of performance: economic and financial, with the aim to provide evidence that supports the distinctions between both definitions. Relying on a Belgian sample consisting of 14,135 firms, our results show that one specific variable deserves to be questioned: the worker’s level of education. On one hand, it seems that the workers’ level of education has a positive impact on economic performance; namely, the more the firms hire highly educated workers, the more productive it is. On the other hand, it seems that the effect is entirely the opposite when the financial performance is taken into account. In this case, the more the firms rely on highly educated workers, the less it is performing in a competitive manner.
topic Financial Performance
Firm Performance
Panel data
Economic Performance
url http://economics.expertjournals.com/23597704-507/
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