The Indirect Effects of Firm Size and Financial Structure on Firm Performance through Investments in Human Capital Development
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Abstract
This research aims to examine the indirect relationship between firm size and financial structure on business performance through investments in human capital development. The study utilized data from companies listed on the Stock Exchange of Thailand for the years 2021-2022, sourced from financial statements and the “56-1 One Report” within the SETSMART database. Companies with incomplete financial statement data and those in the rehabilitation group were excluded, resulting in a total sample size of 892 observations. Path analysis was employed to test the relationships. The results revealed that larger firms exhibited a positive indirect relationship with firm performance through investments in human capital development. Similarly, companies with a financial structure characterized by debt-to-equity demonstrated a positive indirect relationship with firm performance via investments in human capital development. Furthermore, the findings indicated that debt-to-equity had a direct relationship with firm performance, whereas no direct relationship was found between firm size and firm performance.
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