Training and Development Policy, Corporate Governance, and Firm Performance

Abstract

This research investigates the role of corporate governance as a moderator between firms' performance and their Training and Development Policy (TDP). Research data were taken from the US, Brazil, Russia, India, China and Indonesia from 2007 to 2013. This research found that the TDP is important for enhancing firm performance. Also, the role of the training and development policy impacted each firm's performance differently, according to the level of corporate governance of that firm. The moderating effect of corporate governance reveals that better governance of a firm may have an influence on its TDP policy, which would lead to better firm performance. Overall, the results are consistent with the conjecture that corporate governance influences the firm's performance and training and development policy, suggesting that the training and development policy's success depends on the corporate governance level of the firm. Hence, this research contributes to two big theories: the knowledge transfer theory and the human capital theory, where the research findings show a confirmation of the two theories application in this research context.

Training programs’ return on investment in the Portuguese railway company: a fuzzy‐set Qualitative Comparative Analysis

“…The road to the fulfillment of the research objectives has not been free from obstacles. We followed the previous studies and used EBITDA as a general proxy to measure the impact of training (Aragon & Valle, 2013;Brahmana et al, 2018;Mehra et al, 2014) because we used a year's worth of programs. If we had restricted the study to a few programs, we might have used different proxies to measure the impact of the different training programs associated to the specific topics covered, like in Chochard and Davoine (2011), Curado and Teixeira (2014) and Noe (2010).…”

“…There are many ways to isolate the effects of training: performance monitoring (Brahmana et al, 2018;Mehra et al, 2014;Percival et al, 2013;Phillips, 1996;Travkin & Sharunina, 2016), surveys (Asadullah et al, 2015;Chochard & Davoine, 2017;Dmitry & Manokhina, 2017;Fregonese et al, 2018;Grohmann & Kauffeld, 2013;Guerci & Vinante, 2011;Phillips, 1996), management estimation (Phillips, 1996) and information directly from the program participants (Subramanian et al, 2012).…”

“…Similarly, the ROI for training suffers influences from the other levels of training evaluation that relate to Kirkpatrick's four levels: reaction (satisfaction, utility) (Fregonese et al, 2018;Grohmann & Kauffeld, 2013), learning (knowledge) (Grohmann & Kauffeld, 2013;Fregonese et al, 2018), behavior (application to practice) (Fregonese et al, 2018;Grohmann & Kauffeld, 2013), individual organizational results (motivation, individual performance) (Grohmann & Kauffeld, 2013;Fregonese et al, 2018) and global organizational results (workflow improvement, organizational climate, firm performance) (Brahmana et al, 2018;Fregonese et al, 2018;Grohmann & Kauffeld, 2013;Subramanian et al, 2012).…”

“…In order to estimate ROI, it is necessary to convert the company's results into monetary values (Kirkpatrick & Kirkpatrick, 2005) in order to follow the Phillips methodology (Phillips & Phillips, 2016). We follow previous studies that use financial proxies like EBITDA (earnings before interest, taxes, depreciations and amortizations) and EBITDA-related ratios like ROS (return on sales) or ROA (return on assets) to address the ROI for organizational level training (Aragon & Valle, 2013;Brahmana et al, 2018;Mehra et al, 2014). Therefore, we consider EBITDA as an adequate proxy for the aggregate measure of productivity of the company.…”

The Sharia Supervisory Board and Corporate Social Responsibility Disclosure: A Sharia Perspective in Indonesia

“…The Sharia Supervisory Board Effectiveness (SSBE) will influence the Sharia Banks' financial performance and their CSR. This shows that the practice of good corporate governance (GCG) will result in higher financial performance and CSR (Brahmana, Brahmana, & Ho, 2018;Mai, 2017).…”