Despite the importance of intellectual capital (IC), accounting standards are conservative concerning the capitalization of IC as assets. Thus, intangible-intensive firms disclose additional IC information, e.g. in their annual reports. The market-to-book value (MBV) ratio is regarded as an...

Intellectual capital — broadly defined to include nonphysical sources of value such as patents and copyrights, computer software, organizational processes and know-how — has a long history of being undervalued and excluded from measures of economic productivity and wealth. In recent years,...

Assessing the performance of business organisations has been a priority for all stakeholders, and this is the reason accounting has continuously evolved to better assist investors in their decision-making process. However, given the increasing importance of the service industry, the focus in...

This paper provides an overview of the human capital literature focusing on the firm's incentives and disincentives to invest in human capital and subsequently to account for the investments. The evidence suggests human capital investment decisions are intrinsically linked to the success of a...

Disclosure of human resources-related expenditure that contributes to a firm's value-creation, would expect to have value relevance in equity markets. This study uses data from listed companies in Australia over 8 years, covering accounting regime change and share-market upheaval, to trace the...

I study the effect of applicability and assessability of accounting for Human Capital tools on the Human Capital accounting practice in the Kenyan medium and large organizations. The study employed the explanatory-mixed method cross-sectional survey on Chief Finance Officers (CFOs) in the Kenyan...

This study examines whether social and human capital influence the compensation of individual auditors in the small audit firm market. We employ a sample of Italian auditors and use measures from the network and auditing literatures to capture their professional connections, representing social...

Two critical aspects of the model of auditor expertise development in Tan and Libby [1997] are that audit firms do not value tacit knowledge in inexperienced auditors but do value it in experienced auditors. We update the former and extend the latter. Our paper predicts and finds that audit...