The impact of human capital investment on enhancing financial architecture

An analytical study of a sample of companies listed on the Iraqi Stock Exchange

Abstract

 The current study aims to determine the extent of the impact of human capital investment as an independent variable on financial architecture indicators as a dependent variable, as it dealt with the concepts of (human capital investment) and (financial architecture) and their measurement indicators. The study (Mustafa, & Stella, 2023) was relied upon in Measuring the independent variable (human capital investment) through indicators (return on assets and human capital efficiency). While the study (Catur & Zaenal, 2020) was relied upon to measure the dependent variable through financial architecture indicators (ownership structure and capital structure). The target population for the current study is the joint-stock industrial companies listed on the Iraq Stock Exchange, which number (21) joint-stock industrial companies. The study sample was chosen in accordance with the requirements of the current study, as the industrial sector of joint-stock Iraqi companies listed on the Iraqi Stock Exchange was identified. The total number is (21) listed joint-stock industrial companies. (10) companies were selected for which data are available for the time period from (2014) until (2023), a set of hypotheses were imposed and a set of questions were developed for the study in order to achieve the objectives of the study, and then the hypotheses were tested for the selected study sample. The data was obtained from the websites of (the Iraq Stock Exchange, the Securities Commission) through the companies’ financial reports. The data was analyzed according to the simple and multiple regression method using the program (Eviews-12) and the program (AMOS v.26). The researcher also used the program ( EXCEL) to draw indicator curves, the study reached a set of conclusions, the most important of which is that companies with a balanced financial architecture allocate capital more effectively, invest in high-return projects and help with long-term growth and stability. As for the most important recommendations that the study concluded with, they adopt... Industrial companies take a strategic approach to human capital investments that are consistent with their long-term goals.