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...

This article proposes a practical method to accomplish a previously elusive task: measuring human capital with monetary values on the statement of financial position, such as the balance sheet.Human capital is shown to comply with the definition of a right-of-use asset, as defined in the IASB...

This study examines the disclosure of labor-related costs by US firms, and estimates the proportion of these costs that are valued as an asset (human capital) by the market. Separate identification of labor-related costs in US financial reports is voluntary, and is made consistently only by...

The industrial revolution has given way to an age of computers, information and global competitions. Decisions are made more quickly and superior knowledge of products, management techniques & styles, skills, markets, methods, systems, procedures, human resources, policies, quality of work life,...

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...

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...

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...