Human Capital Accounting and its Relevance to Stock Investment Decisions in Nigeria.
No Thumbnail Available
Date
2010
Authors
Okpala, P.O
Chidi, O.C
Journal Title
Journal ISSN
Volume Title
Publisher
EuroJoumals, Inc. 2010
Abstract
The authors x-rayed the relevance of human capital acccounting to stock investment
decisions in Nigeria. It is believed that a well-developed system of human resource/capital accounting could contribute significantly to internal decisions by management and external decisions by investors. Information on investment and value of human resources is useful for decision making in the enterprise. The authors adopted the survey research design. An instrument was designed using the 5-point Liken scales ranging from strongly agree (5) to strongly disagree (l). The instrument has 26 items. /\ total of 65 samples were drawn from the target population using the simple random sampling technique. Out of the 65 questionnaires administered, 44 were returned upon which the analysis was based. This represents 67.7% response rate. Data analysis was carried out with the aid of SPSS (Statistical Package for Social Sciences). The Chi-square statistical technique was used to test the hypotheses at 5% alpha level. It was found out that the quality of human capital is a major factor in determining the value of a firm's stock and investment decisions. Quality of management and employees are key factors in investment decisions
(X2 = 30.86,p < 0.05). Stocks of companies with poor quality manpower and high staff
turnover are high risk investment. (X2 = 28.16, ;p; 0 .05). It was also empirically
verified that the inclusion of human capital value in the balance sheet of organizations does help investors make more rational investment decisions. Human capital accounting should be made necessary element of financial reporting (x240.37, p < .05.) The authors recommended the need to address the issues of human capital development and investment at both the micro and macro levels and that human capital value should be included in the balance sheet of Nigerian organizations to aid investment decisions.
Keywords: Human capital accounting, investment decisions, human asset.
Description
Staff Publication
Keywords
Human Capital Accounting , Investment Decisions
Citation
Okpala,P.O and Chidi,O.C (2010) Human Capital Accounting and its Relevance to Stock Investment Decisions in Nigeria. European Journal of Economics, Finance and Administrative Sciences. (21), p. 65 - 76.