Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Personnel Investments and Abnormal Return Knowledgebased Firms and Human Resource Accounting

Personnel Investments and Abnormal Return Knowledgebased Firms and Human Resource Accounting This study examines the pricing of knowledgebased firms compared with firms that are less dependent on human resources. The results show that an increasing dependence on human resources is followed by a rise in abnormal return. The results indicate that investors are not able to distinguish personnel investments from expenses, leading to an underestimation of earnings and return. The findings suggest that investors may need accounting information on human resources to help improve investment decisions. There is no evidence in the present material to suggest that investors perceive knowledgebased firms as more risky compared with firms with more accountable tangible assets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resource Costing & Accounting Emerald Publishing

Personnel Investments and Abnormal Return Knowledgebased Firms and Human Resource Accounting

Journal of Human Resource Costing & Accounting , Volume 2 (2): 21 – Feb 1, 1997

Loading next page...
 
/lp/emerald-publishing/personnel-investments-and-abnormal-return-knowledgebased-firms-and-1bT2cn2Gyz
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1401-338X
DOI
10.1108/eb029037
Publisher site
See Article on Publisher Site

Abstract

This study examines the pricing of knowledgebased firms compared with firms that are less dependent on human resources. The results show that an increasing dependence on human resources is followed by a rise in abnormal return. The results indicate that investors are not able to distinguish personnel investments from expenses, leading to an underestimation of earnings and return. The findings suggest that investors may need accounting information on human resources to help improve investment decisions. There is no evidence in the present material to suggest that investors perceive knowledgebased firms as more risky compared with firms with more accountable tangible assets.

Journal

Journal of Human Resource Costing & AccountingEmerald Publishing

Published: Feb 1, 1997

There are no references for this article.