The impact of human resource valuation on corporate performance

  • DC Akpan
Keywords: Human resource, investment, financial reports

Abstract

This study examined the impact of human resource valuation on corporate performance. The major objective of this work was to explore the extent to which human effort could be recognized as asset and also seek for the need to disclose them in the financial statement. The research design adopted for the study was survey research design. Questionnaires were distributed to the four companies under review and the data obtained were collated and analyzed using multiple regression. It was discovered that the financial reports of companies will present a more accurate and complete account of the organizations total worth when human resource is valued and reported a long side other assets of the company like plant and machinery, land and buildings, etc. It was also discovered that human resource valuation has a positive influence on investment decision of organizations. This is because investors make investment decision based on the total worth of the firms. It was recommended that accounting bodies should educate management of companies & human resource managers on the need to capitalize investment in human resource. It was also recommended that there should be harmonization of the various concept of human resource accounting which include human asset accounting, human capital accounting, human worth accounting etc so that the common good of human resource accounting could be achieved.

Keywords: Human resource, investment, financial reports

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Articles

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eISSN: 1119-443X