earticle

영어

This study aims to investigate the effects of the relationship between training expenses and length of service on firm values. Various studies have been conducted to identify the effect of training expenses, which have the characteristics of some intangible assets, on business performance or firm value, but consistent results have not been reported. Due to the characteristics of Korean companies with strong seniority, it is reported that firm value or business performance of companies with long service years is low. This is because the rate at which wages increase as the length of service accumulates is faster than the rate of increase in proficiency. In this study, firm value with large training expenditures and long service years is verified. For verification, regression analyses were conducted on non-financial KOSPI companies from 2005 to 2021. As a result of the analyses, it was found that companies with large expenditures on training and long service years have high value. Employees of companies with large training expenditures and long service years are believed to maintain an increase in their proficiency even if years of service accumulate compared to employees of other companies. In the previous studies, individual analyzes have been conducted such as training expenses and firm value, length of service and firm value, but this study is meaningful in that it is analyzed with firm value by linking training expenses and length of service.