THE FINANCING OF THE PRODUCTIVE SERVICE THROUGH HCC
Jiří Mihola, Radim Valenčík
Pages: 786-797 Published: 29 Aug 2014
Views: 2,226 Downloads: 564
Abstract: The use of HCC in areas of acquisition, utilization, and preservation of human capital. Economic effects of such sectors – acceleration of professional fulfillment, better professional performance, longer zenith and horizon of productive fulfillment. Proposal and substantiation of the HCC based on the transferred price to ensure that economic effects through the relevant mechanisms (and not on the basis of the institutional system entities) serve as the source of financing for the entities that contributed to them and are distributed based on the contribution of such entities to the achievement thereof. A transferred price is a contract, where a productive service recipient makes payments based on the potential benefits accrued as a result of the productive service and based on the amount of returns generated from the productive service – directly to the productive service provider. Effects of some productive services only materialize in the form of longer horizon of productive fulfillment.
Keywords: human capital contracts, transferred price, productive service