To test the hypotheses of this study, we used the data from the Human Capital Corporate Panel(HCCP) survey, which was conducted by the KRIVET in 2005. The HCCP was conducted to
survey the level of human resources of individual companies, and to analyse how they
accumulate and utilise human capital. The survey covered a broad range of HR practices across almost every sector of South Korea’s economy. The data were collected from strategic planning managers, HR managers and employees in private sector companies (KRIVET, 2007). In addition, financial data for the present study were obtained from the Korea Information Service (KIS), which provides annual financial information of South Korean companies.