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Human Capital and Cash Holdings of Foreign Companies: An Evidence from Developing Economies

Ali, Hyder LU (2016) NEKN02 20161
Department of Economics
Abstract
This study investigates the relationship between human capital investment opportunities in developing economies and cash holdings of foreign firms. Using a sample of 1838 foreign firms operating in Brazil, Russia, India, China and South Africa, I find a positive relationship between cash holdings of foreign firms and human capital investment opportunities, measured by human capital opportunities index (HCIOI). Moreover, foreign firms in China and India face more human capital opportunities and the impact of human capital investment opportunities is stronger for i) foreign firms than domestic firms; ii) labor-intensive industries than capital-intensive industries; iii) non-distressed firms than distressed firms; and iv) financially... (More)
This study investigates the relationship between human capital investment opportunities in developing economies and cash holdings of foreign firms. Using a sample of 1838 foreign firms operating in Brazil, Russia, India, China and South Africa, I find a positive relationship between cash holdings of foreign firms and human capital investment opportunities, measured by human capital opportunities index (HCIOI). Moreover, foreign firms in China and India face more human capital opportunities and the impact of human capital investment opportunities is stronger for i) foreign firms than domestic firms; ii) labor-intensive industries than capital-intensive industries; iii) non-distressed firms than distressed firms; and iv) financially constrained firms than unconstrained firms. (Less)
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author
Ali, Hyder LU
supervisor
organization
course
NEKN02 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Human capital investment, cash holdings, developing economies, BRICS.
language
English
id
8876892
date added to LUP
2016-06-13 14:16:33
date last changed
2016-06-13 14:16:33
@misc{8876892,
  abstract     = {This study investigates the relationship between human capital investment opportunities in developing economies and cash holdings of foreign firms. Using a sample of 1838 foreign firms operating in Brazil, Russia, India, China and South Africa, I find a positive relationship between cash holdings of foreign firms and human capital investment opportunities, measured by human capital opportunities index (HCIOI). Moreover, foreign firms in China and India face more human capital opportunities and the impact of human capital investment opportunities is stronger for i) foreign firms than domestic firms; ii) labor-intensive industries than capital-intensive industries; iii) non-distressed firms than distressed firms; and iv) financially constrained firms than unconstrained firms.},
  author       = {Ali, Hyder},
  keyword      = {Human capital investment,cash holdings,developing economies,BRICS.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Human Capital and Cash Holdings of Foreign Companies: An Evidence from Developing Economies},
  year         = {2016},
}