| Peer-Reviewed

The Relationship Between Organizations’ Acquired Knowledge, Skills, Abilities (SKAs) and Shareholders Wealth Maximization: The Mediating Role of Training Investment

Received: 17 July 2015     Accepted: 1 August 2015     Published: 11 August 2015
Views:       Downloads:
Abstract

The study examined the relationship between organizations’ acquired knowledge, skills, abilities and shareholders wealth with training playing the mediating role. The sample of the study consisted of organizations that spent 10% or more of its annual budget on training and those whose training budget is less than 10% of the organization’s annual budget. A total of 620 questionnaires were distributed to employees working in various organizations out of which 580 representing 93.5% were retrieved. The sample was drawn using convenience sampling. The data collection instrument was mainly questionnaires supported by the use of Regression models for analysis to be made. Analyzing multiple models, it was discovered that organizations training investment plays a considerable indirect and direct effect with partial mediation between organizations acquired skills, knowledge, abilities and shareholders wealth. Shareholders should allow their agents to invest part of their holdings to develop the human capital of the organization but this should be done with caution since shareholders returns do not depend much on how much organizations spend in developing its human resource capital.

Published in Journal of Investment and Management (Volume 4, Issue 5)
DOI 10.11648/j.jim.20150405.15
Page(s) 171-179
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Skills, Knowledge, Abilities, Shareholders Wealth, Training Investment

References
[1] Ahmad, S., & Schroeder, R. G. (2003). The impact of human resource management practices on operational performance, Journal of Operational Management, 21(1)
[2] Alan, Gillies (2009). ‘5 Reasons to start training your staff’, Ezine Articles
[3] ASTD (2010). ‘Training: Your investment in people development and retention’, Quoted by: Heathfield (2012)
[4] Barney, J. (2005). ‘Firm resources and sustained competitive advantage’, Journal of Management, vol. 17(1)
[5] Baron, R. M and Kenny, D. A (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations, Journal of Personality and Social Psychology, 51(6)
[6] Bateman, Thomas S. and Snell, Scott (2000). Management: Building Competitive Advantage, 3rd ed., New York, McGraw-Hill
[7] Beach, Dales S. (2004). Management of People at Work, 5th ed., New York, Macmillan Publishing Company
[8] Bottomley, Michael H. (2000). Personnel Management, London, Pitman Publishing
[9] Chapman, P.G. (1993). The economics of training, Exeter, UK: BPCC Whearons Ltd
[10] Cho et al (2006). Measuring the impact of human resource management practices on hospitality firms’ performances, International Journal of Hospitality Management, 25(2)
[11] Cole, G.A (1996). Management: Theory and Practice, 5th ed., London, DP Publishing
[12] Crane, Donald P (2002). The Management of Human Resources, 3rd ed., Massachusetts, Kent Publishing
[13] Devanna et al (2005). Human Resource Management, 2nd ed., London, Pitman Publishing
[14] Gall et al (2002). Human Resource Management, 4th ed., London, Thompson Learning
[15] García, M. (2005). Training and business performance: The Spanish case. International Journal of Human Resource Management, 16(9)
[16] Gelade, G.A., & Ivery, M. (2003). The impact of human resource management and work climate on organizational performance, Personnel Psychology, 56(3)
[17] Ghebregiorgis, F., & Karsten, L. (2007). Human resource management and performance in a developing country, International Journal of Human Resource Management, 18(2)
[18] Grobler et al (2006). Human Resource Management in South Africa, 3rd ed., London, Thompson Learning
[19] Guest, D E (2009). Current Trends in Human Resource Management in Europe, London, Kogan Page
[20] Howe, Sally (2004). Essential Elements of Human Resource Management, London, DP Publishing
[21] Huang, T. (2000). Are HR practices of effective firms distinctly different from those of poorly performing ones. International Journal of Human Resource Management, 11(2),
[22] Huselid Mark A. (1995). ‘The impact of human resource management practices on turnover, productivity, and corporate financial performance’, Academy of Management Journal, Vol.3 (1)
[23] Katou, A., & Budhwar, P. (2007). The effect of HRM policies on organizational performance in Greek manufacturing firms, Thunderbird International Business Review, 49(1)
[24] Khatri, N. (2000). Managing human resources for competitive advantage, International Journal of Human Resource Management, 11(2)
[25] Krueger, A., & C, Rouse. (1998). The impact of workplace education on earnings, turnover and job performance. Journal of Labor Economics, 16(11)
[26] Nickel et al (2002). Introduction to Human Resource Management, USA, Granta
[27] Pine, J., & Judith, C.T. (1993), ROI of soft-skills training. Training
[28] Pratt, K.J and Bennet, S.E (2001). Elements of Personnel Management, 2nd ed., London, Chapman and Hall
[29] Taylor, S.J. and Bogdan R (1984). Introduction to qualitative research methods: The search for meanings, John Wiley, New York
[30] Werner, Jon M and DeSimone, Randy L (2009). Human Resource Development, Mason, South-Western Cengage Learning
[31] Wright, V and Taylor A (2004). The Handbook of Performance Management, London, Institute of Personnel Management
[32] World Bank (1991). ‘Vocational and Technical Education and Training’, Discussion Paper, Population and Human Resource Development, Washington D.C.
Cite This Article
  • APA Style

    Gabriel Dwomoh, Williams Kwasi Boachie, Kofi Kwarteng. (2015). The Relationship Between Organizations’ Acquired Knowledge, Skills, Abilities (SKAs) and Shareholders Wealth Maximization: The Mediating Role of Training Investment. Journal of Investment and Management, 4(5), 171-179. https://doi.org/10.11648/j.jim.20150405.15

    Copy | Download

    ACS Style

    Gabriel Dwomoh; Williams Kwasi Boachie; Kofi Kwarteng. The Relationship Between Organizations’ Acquired Knowledge, Skills, Abilities (SKAs) and Shareholders Wealth Maximization: The Mediating Role of Training Investment. J. Invest. Manag. 2015, 4(5), 171-179. doi: 10.11648/j.jim.20150405.15

    Copy | Download

    AMA Style

    Gabriel Dwomoh, Williams Kwasi Boachie, Kofi Kwarteng. The Relationship Between Organizations’ Acquired Knowledge, Skills, Abilities (SKAs) and Shareholders Wealth Maximization: The Mediating Role of Training Investment. J Invest Manag. 2015;4(5):171-179. doi: 10.11648/j.jim.20150405.15

    Copy | Download

  • @article{10.11648/j.jim.20150405.15,
      author = {Gabriel Dwomoh and Williams Kwasi Boachie and Kofi Kwarteng},
      title = {The Relationship Between Organizations’ Acquired Knowledge, Skills, Abilities (SKAs) and Shareholders Wealth Maximization: The Mediating Role of Training Investment},
      journal = {Journal of Investment and Management},
      volume = {4},
      number = {5},
      pages = {171-179},
      doi = {10.11648/j.jim.20150405.15},
      url = {https://doi.org/10.11648/j.jim.20150405.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150405.15},
      abstract = {The study examined the relationship between organizations’ acquired knowledge, skills, abilities and shareholders wealth with training playing the mediating role. The sample of the study consisted of organizations that spent 10% or more of its annual budget on training and those whose training budget is less than 10% of the organization’s annual budget. A total of 620 questionnaires were distributed to employees working in various organizations out of which 580 representing 93.5% were retrieved. The sample was drawn using convenience sampling. The data collection instrument was mainly questionnaires supported by the use of Regression models for analysis to be made. Analyzing multiple models, it was discovered that organizations training investment plays a considerable indirect and direct effect with partial mediation between organizations acquired skills, knowledge, abilities and shareholders wealth. Shareholders should allow their agents to invest part of their holdings to develop the human capital of the organization but this should be done with caution since shareholders returns do not depend much on how much organizations spend in developing its human resource capital.},
     year = {2015}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - The Relationship Between Organizations’ Acquired Knowledge, Skills, Abilities (SKAs) and Shareholders Wealth Maximization: The Mediating Role of Training Investment
    AU  - Gabriel Dwomoh
    AU  - Williams Kwasi Boachie
    AU  - Kofi Kwarteng
    Y1  - 2015/08/11
    PY  - 2015
    N1  - https://doi.org/10.11648/j.jim.20150405.15
    DO  - 10.11648/j.jim.20150405.15
    T2  - Journal of Investment and Management
    JF  - Journal of Investment and Management
    JO  - Journal of Investment and Management
    SP  - 171
    EP  - 179
    PB  - Science Publishing Group
    SN  - 2328-7721
    UR  - https://doi.org/10.11648/j.jim.20150405.15
    AB  - The study examined the relationship between organizations’ acquired knowledge, skills, abilities and shareholders wealth with training playing the mediating role. The sample of the study consisted of organizations that spent 10% or more of its annual budget on training and those whose training budget is less than 10% of the organization’s annual budget. A total of 620 questionnaires were distributed to employees working in various organizations out of which 580 representing 93.5% were retrieved. The sample was drawn using convenience sampling. The data collection instrument was mainly questionnaires supported by the use of Regression models for analysis to be made. Analyzing multiple models, it was discovered that organizations training investment plays a considerable indirect and direct effect with partial mediation between organizations acquired skills, knowledge, abilities and shareholders wealth. Shareholders should allow their agents to invest part of their holdings to develop the human capital of the organization but this should be done with caution since shareholders returns do not depend much on how much organizations spend in developing its human resource capital.
    VL  - 4
    IS  - 5
    ER  - 

    Copy | Download

Author Information
  • Institute of Entrepreneurship and Enterprise Development, Kumasi Polytechnic, Kumasi, Ghana

  • Department of Accounting Education Studies Education, University of Education, Kumasi, Ghana

  • School of Business, Takoradi Polytechnic, Takoradi, Ghana

  • Sections