INVESTMENTS IN HUMAN CAPITAL AND COMPANY’S FINANCIAL STABILITY: IS THERE ANY RELATION?

Abstract

The purpose of the research is to identify the impact of the investments in human capital on the general financial conditions of the largest private companies of the Republic of Kazakhstan, as well as to develop recommendations for companies to have better financial incentives for employees.Research methodology – there was applied panel data of ten companies throughout the 2022 year. The data analysis includes the variables of the number of employees, company size, revenue, trainings, qualifications and other similar courses, provided by the companies.Originality/value of the research – there are a lot of studies, that analyze how employees make an impact on company, however most of them have qualitative way of research. Authors, in turn, apply quantitative modelling and analyze the largest companies in Kazakhstan.Findings. Our findings show that the number of employees appears to have a statistically significant positive impact on revenue. More employees are associated with higher revenue.