Human Capital resource as cost or investment: A market-based analysis
| Autor: | Yehuda Baruch, Ranadeva Jayasekera, Krishanthi Vithana, Taufiq Choudhry |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Market based
Organizational Behavior and Human Resource Management Resource (biology) business.industry Strategy and Management Investment (macroeconomics) Human capital Management of Technology and Innovation Industrial relations Key (cryptography) Stock market Business Business and International Management Human resources Industrial organization Marketing myopia |
| Zdroj: | The International Journal of Human Resource Management. 34:1213-1245 |
| ISSN: | 1466-4399 0958-5192 |
| DOI: | 10.1080/09585192.2021.1986106 |
| Popis: | This study empirically investigates the myopic behavior of the stock market toward firms’ human capital resource investment, paying particular attention to two key proxies: human resource expenditure and the firm value added allocated to the employees. Focusing on human capital resource investment decisions’ alignment with near versus longer-term emphasis by investors, we examine firms listed in the Financial Times Stock Exchange (FTSE) 100 over a five-year period using an established accounting-based valuation model. Our results show that human capital investment discourse leads to overweighting of the forecasted longer-term earnings in the apportionment of share price constituents, suggesting that investors consider investment in employees to generate more return in the longer-term. Additionally, our findings prove that investors respond to firm level human capital resource as an investment generating more return in the longer-term. This emphasises the importance of communicating human capital resource investment information that accurately reflects the firm value creation via employees in external financial reporting. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|