Relationship Between Risky Investment and Human Capital in Companies Listed in Tehran Stock Exchange

The present study aimed to examine the relationship between Risky Investment and Human Capital. For this purpose, a sample consisting of 115 company in the period 2011 to 2016 were studied. In the research process unlevered daily stock return volatility is introduced as criteria for measure risky investment (independent variable) and; to evaluate human capital as dependent variable, two criteria included the board compensation and the costs of salary were used. The results of the hypothesis test showed that there is a significant, inverse relationship between risky investment and the compensation of the board, probably due of the lack of effective and complete market and the way of approval and payment of board compensation in Iran. There is not a significant relationship between risk investment and employee payroll. In addition, evidence suggest that payment of salary to the employees which was greater than the average of the salaries of the sample companies, did not have a significant effect on the relationship between risky investment and personnel salary. This could possibly indicate that companies are not paying enough attention to the importance of human capital as a valuable resource.