Investigating Value Creating of Human Capital Reporting (HCR)

Subject Areas : Management Accounting

یحیی حساس یگانه ¹ (ندارد)
نظام الدین رحیمیان ² (ندارد)
اسماعیل توکل نیا ³ (ندارد)

Received: 2013-12-31 Accepted : 2014-03-06 Published : 2014-05-20

Keywords: Human Capital Reporting (HCR), Financial Performance, Firm Value, Tehran&#x0D, &#x0D, Stock Exchange,

Abstract :

Based on existing evidence, Successful companies’ most important assets are intangible –such as their human capital. However, few companies provide detailed information about thisresource. Human capital reporting (HCR) can also be regarded as an instrument that affectcompany financial performance and ultimately increase firm value. In this article,Gamerschlag and Moeller’s model (2011) is used that describes cause-and-effect relationshipsbetween HCR and company financial performance. So, the main purpose of this study is toexamine the impact of HCR on financial performance and value of companies listed in theTehran Stock Exchange. The dataset includes 112 companies listed in the Tehran StockExchange during the period 1385-1389. The study finds no significant evidence of the effectof HCR on the firm financial performance, but HCR has a positive and significant effect onstock price and firm value. Also, findings suggest a positive moderating effect of companysize on the relationship between HCR and stock price and between HCR and firm value. It isalso found that financial leverage and debt maturity have significant and positive impact onHCR.