Staff View: Non-financial human capital disclosure and share price

Non-financial human capital disclosure and share price

The aim of this study is to examine the relationship between disclosure of non-financial human capital information (HCD) and share price of the top 100 companies listed on Bursa Malaysia from financial years 2010 to 2013. Human capital (HC) is considered a valuable asset in a knowledge-based economy...

Full description

Saved in:

Bibliographic Details
Main Authors:	Mohamat Sabri Hassan,, Marsita Mustafa,, Mara Ridhuan Che Abdul Rahman,
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:	http://journalarticle.ukm.my/15295/1/32490-100846-2-PB.pdf http://journalarticle.ukm.my/15295/ http://ejournal.ukm.my/ajac/issue/view/1184
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-ukm.journal.15295
record_format	eprints
spelling	my-ukm.journal.152952020-09-30T06:54:46Z http://journalarticle.ukm.my/15295/ Non-financial human capital disclosure and share price Mohamat Sabri Hassan, Marsita Mustafa, Mara Ridhuan Che Abdul Rahman, The aim of this study is to examine the relationship between disclosure of non-financial human capital information (HCD) and share price of the top 100 companies listed on Bursa Malaysia from financial years 2010 to 2013. Human capital (HC) is considered a valuable asset in a knowledge-based economy. The knowledge and skills possessed by individuals are regarded as a key source of competitive advantage and value creator to companies. Prior research acknowledges the importance of HC information to investors, who may have to rely on disclosures in annual reports when evaluating a company’s future direction, potential, value and prospects. However, companies only disclose limited information on this ‘asset’. In this study, HCD is viewed from the perspective of signalling and efficient capital market theories. Following previous studies, we incorporate HC information and its two components, namely, HC information related to directors and employees, into the Ohlson model. Our study reveals an increasing trend of HCD, and the disclosure is value relevant. Further analysis of the HC information component reveals that both HC information (HC related to directors and employees) are value relevant. These findings are in line with the argument that Malaysian financial analysts and fund managers regard information related to the company’s management and key corporate decision makers as important in investment decision making. The findings of this study are relevant to accounting standard setters in determining the types of HC that should be disclosed in the annual reports because this information can create value for companies. Managers should also pay attention to HC information because such information is value relevant to stakeholders. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15295/1/32490-100846-2-PB.pdf Mohamat Sabri Hassan, and Marsita Mustafa, and Mara Ridhuan Che Abdul Rahman, (2019) Non-financial human capital disclosure and share price. Asian Journal of Accounting and Governance, 11 . pp. 49-59. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1184
institution	Universiti Kebangsaan Malaysia
building	Tun Sri Lanang Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Kebangsaan Malaysia
content_source	UKM Journal Article Repository
url_provider	http://journalarticle.ukm.my/
language	English
description	The aim of this study is to examine the relationship between disclosure of non-financial human capital information (HCD) and share price of the top 100 companies listed on Bursa Malaysia from financial years 2010 to 2013. Human capital (HC) is considered a valuable asset in a knowledge-based economy. The knowledge and skills possessed by individuals are regarded as a key source of competitive advantage and value creator to companies. Prior research acknowledges the importance of HC information to investors, who may have to rely on disclosures in annual reports when evaluating a company’s future direction, potential, value and prospects. However, companies only disclose limited information on this ‘asset’. In this study, HCD is viewed from the perspective of signalling and efficient capital market theories. Following previous studies, we incorporate HC information and its two components, namely, HC information related to directors and employees, into the Ohlson model. Our study reveals an increasing trend of HCD, and the disclosure is value relevant. Further analysis of the HC information component reveals that both HC information (HC related to directors and employees) are value relevant. These findings are in line with the argument that Malaysian financial analysts and fund managers regard information related to the company’s management and key corporate decision makers as important in investment decision making. The findings of this study are relevant to accounting standard setters in determining the types of HC that should be disclosed in the annual reports because this information can create value for companies. Managers should also pay attention to HC information because such information is value relevant to stakeholders.
format	Article
author	Mohamat Sabri Hassan, Marsita Mustafa, Mara Ridhuan Che Abdul Rahman,
spellingShingle	Mohamat Sabri Hassan, Marsita Mustafa, Mara Ridhuan Che Abdul Rahman, Non-financial human capital disclosure and share price
author_facet	Mohamat Sabri Hassan, Marsita Mustafa, Mara Ridhuan Che Abdul Rahman,
author_sort	Mohamat Sabri Hassan,
title	Non-financial human capital disclosure and share price
title_short	Non-financial human capital disclosure and share price
title_full	Non-financial human capital disclosure and share price
title_fullStr	Non-financial human capital disclosure and share price
title_full_unstemmed	Non-financial human capital disclosure and share price
title_sort	non-financial human capital disclosure and share price
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2019
url	http://journalarticle.ukm.my/15295/1/32490-100846-2-PB.pdf http://journalarticle.ukm.my/15295/ http://ejournal.ukm.my/ajac/issue/view/1184
_version_	1680321971386056704
score	13.211869

Non-financial human capital disclosure and share price

Similar Items