Training and Development Policy, Corporate Governance, and Firm Performance

  • Rayenda Khresna Brahmana Universiti Malaysia Sarawak
  • Ritzky Karina Brahmana Universitas Kristen Petra Surabaya
  • Theresa Char Fei Ho Tunku Abdul Rahman University
Keywords: Corporate Governance, Finance, 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.

Author Biography

Rayenda Khresna Brahmana, Universiti Malaysia Sarawak

He is a Director for Centre of Business Economics and Finance Forecasting Universiti Malaysia Sarawak. He obtained his PhD from Universiti Sains Malaysia in 2013. He serves International Journal of Business and Society as Associate Managing Editor, active as editorial boards and reviewer boards for several reputable journals, and has international recognition by winning several international awards. He has published many research papers including in Scimago Q1 and Q2 Scopus journals. Brahmana is also actively writing books and articles in newspaper.

References

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Published
2018-04-27
How to Cite
Brahmana, R. K., Brahmana, R. K., & Ho, T. C. F. (2018). Training and Development Policy, Corporate Governance, and Firm Performance. Gadjah Mada International Journal of Business, 20(1), 59-87. Retrieved from https://dev.journal.ugm.ac.id/v3/gamaijb/article/view/15605