Recognition and measurement of human capital expenditures – impacts on company's performance measurement

Vinko Belak, Zeljana Aljinovic Barac and Ivana Tadic

International Journal of Economics and Business Research, 2009, vol. 1, issue 2, 252-262

Abstract: Both internal and external users of financial statements use ratio analysis as a main tool in decision-making processes. Great numbers of financial ratios are based on 'ideal' balance sheet structure. Thus, growing companies with great proportion of unrecorded intellectual capital raises this kind of analysis as doubtful. The aim of this article is to provide empirical evidence concerning impacts of different ways in recognising and measuring human capital expenditures on financial statements analysis as company's performance measure. Research hypothesis implies that in high-tech industry, financial performance depends on human capital investments, so companies investing in human resources will obtain greater financial results. Consequently, financial statement analysis will provide truer and fairer view of company's performance if human capital expenditures are capitalised in balance sheet rather than recognised as expenses in profit and loss account. Verification of empirical evidence will be provided through the sample of Croatian large high-tech companies.

Keywords: accounting recognition; financial statements analysis; human resources management; HRM; intellectual capital; performance measurement; human capital expenditures; Croatia; high-tech firms; high technology. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=24023 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecbr:v:1:y:2009:i:2:p:252-262

Access Statistics for this article

More articles in International Journal of Economics and Business Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().