Campus Units

Accounting, Economics

Document Type

Article

Publication Version

Published Version

Publication Date

1995

Journal or Book Title

Journal of Applied Business Research

Volume

12

Issue

1

First Page

30

Last Page

41

Abstract

A study of 260 firms demonstrates that 2 measures of firm investment in specific human capital are significantly and positively correlated with long-term rates of return on investment. The firm investment in specific human capital measures are generally found to be significant explanatory variables in the regressions that have returns scaled by book value of assets. These measures of investment are insignificant when market value of common stock outstanding is used to scale the return measures. The findings are interpreted to imply that a public or regulatory policy needs to be established to require firms to include at least some basic rudimentary information regarding their human capital investment, such as turnover rates and training costs, in their annual reports.

Comments

This article is from Journal of Applied Business Research 12 (1995): 30. Posted with permission.

Copyright Owner

Journal of Applied Business Research

Language

en

File Format

application/pdf

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