International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Effect of Human Resource Value on Firms’ Stock Price and Financial Performance in Context of Listed Manufacturing Companies in India

    ,

Author Affiliations

  • 1DOS in B.N. Bahadur Institute of Management Sciences, Manasagangotri, University of Mysore, Mysore, Karnataka, INDIA
  • 2 Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, IRAN

Res. J. Recent Sci., Volume 3, Issue (11), Pages 63-69, November,2 (2014)

Abstract

The lack of quantification and disclosure of human assets in domestic and international financial reports may impact stock price.The aim of this study is to analyze empirically the relation between the value of human resource and firms' stock price and financial performance.The data used in the study has been collected from the annual reports of eight selected Manufacturing companies listed in BSE-500 Index for the years 2005-06 to 2011-12. This study is limited to 8 manufacturing organizations, and it indicates that the human asset has not impact on the stock price of selected manufacturing organization. This research also indicates that the human value is positively and negatively affected by the financial performance of the companies; therefore there is a statistically significant relationship between human capital efficiency and firms' financial performance.From a careful examination of correlation results on firm financial performance and HRV the conclusion derives is that the return on asset as a profitability ratio does not have effect on Human value and current ratio and acid ratio as liquidity ratios have negative relationship with Human value and two financial variables which have positive relationship with human resource value are sales revenue and net income.

References

  1. Swart, J. Intellectual capital: disentangling an enigmatic concept, Journal of Intellectual Capital, (2),136-159 (2006)
  2. Porwal L.S., Accounting Theory, 3E: Tata McGraw-Hill Education. (2001)
  3. Likert R., The human organization. New York: McGrawHill. (1967)
  4. Hermanson R., Brummet R., Elias N., Flamholtz E., Irish R. and Kretschmar C. et al., Report of the committee on human resource accounting, The accounting review,(special report),168-185, (1973)
  5. Okpala P.O. and Chidi O.C., Human Capital Accounting and its Relevance to Stock Investment Decisions in Nigeria, European Journal of Economics, Finance and Administrative Sciences(21), 64-76, (2010)
  6. Beattie V. and Smith S.J., Human capital, value creation and disclosure. Journal of Human Resource Costing and Accounting, 14(4), 262-285 (2010)
  7. Abeysekera I., Motivations behind human capital disclosure in annual reports, Paper presented at the Accounting Forum, (2008)
  8. Folloni G. and Vittadini G. Human capital measurement: a survey, Journal of Economic Surveys, 24(2), 248-279.(2010)
  9. Ahmed Asif, Human Resource Accounting (HRA): Techniques and Accounting Treatment . Available at SSRN: http://ssrn.com/abstract = 1624928 or http://dx.doi.org/10.2139/ssrn.1624928. (June 14, 2010) (2010)
  10. Alam I. and Deb S.K., Human resource accounting disclosure (HRAD) in Bangladesh: multifactor regression analysis–a decisive tool of quality assessment, The Cost and Management, 38(3), 9-13. (2010)
  11. Sharma S. and Shukla R.K., Application of Human Resource Accounting in Heavy Industries, SAMRIDDHI-A Journal of Physical Sciences, Engineering and Technology, published by SMS Institute of Technology,Lucknow-227125, UP, India, available at : http://www.smslucknow.com/journals/, 1(2), 131-133,(2010)
  12. Petkov R., Perspectives On Disclosing Human Capital Into The Notes Of The Financial Statements, Analele Stiintifice ale Universitatii Alexandru Ioan Cuza" din Iasi-Stiinte Economice, 57, 29-40 (2010)
  13. Avazzadehfath F. and Raiashekar H., Decision-Making Based on Human Resource Accounting Information and Its Evaluation Method, Asian Journal of Finance and Accounting, 3(1), (2012)
  14. Saremi H and Naghshbandi N., Impact of human resource accounting information on human resource investment in Iranian enterprises, International journal of business policy and economics, New Delhi,4(1), 123-135. (2011)
  15. Steen A., Welch D. and McCormack D., Conflicting conceptualizations of human resource accounting, Journal of Human Resource Costing and Accounting, 15(4), 299-312 (2011)
  16. Pandurangarao D., Basha D.S.C. and Rajasekhar D.A.,Study on Human Resource Accounting Methods and Practices in India, International journal of social science and interdisciplinary research, 2(4), 95-102 (2013)
  17. JEROH E., Human Capital Accounting and the Comparability of Financial Statements in Nigeria, The Journal of Accounting and Management3(2) (2013)
  18. Rasoul Baradaran Hasanzadeh, Samad Torabynia, Karim Esgandari and Shima Kordbacheh, Res. J. Recent Sci.,2(2), 81-84 (2013)