Critically thinking about demand and supply of human capital disclosure of firms

Subhash Abhayawansa, Indra Abeysekera, James Guthrie

Research output: Contribution to conferenceConference paper presented at Conference (not in Proceedings)Researchpeer-review

Abstract

World economies are increasingly being dominated by knowledge intensive industries. Firms that aspire to be successful in such industries focus on fostering intellectual capital (IC), which includes human capital (HC), rather than investing in physical assets. Importance of HC in firm value creation is firmly established in the literature. However, inherent nature of HC has limited any empirical value relevant studies on these assets. Literature on disclosure of IC information by companies in annual reports and IPO prospectuses around the world have looked at the level of emphasis placed on human capital disclosures by preparers of financial statements. These studies show mixed results as some countries disclose more HC information relative to others. On the demand side, capital market participants, namely financial analysts and fund managers seem not yet ready to incorporate such information into their valuation processes. Thus, the current study intends to critically discuss the reasons for the difference in emphasis placed by countries on HC disclosures and impediments for this information to explicitly be considered in valuation decisions by capital market participants. Further, the future role of preparers and users of IC information is evaluated.
Original languageEnglish
Publication statusPublished - 2007
Externally publishedYes
EventInternational Critical Management Studies Conference (ICMS) -
Duration: 1 Jan 2011 → …

Conference

ConferenceInternational Critical Management Studies Conference (ICMS)
Abbreviated titleICMS
Period1/01/11 → …

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Demand and supply
Human capital
Disclosure
Intellectual capital
Capital markets
Assets
Financial statements
World economy
Annual reports
Impediments
Industry
Financial analysts
Knowledge-intensive industries
Investing
Value creation
Fund managers
Firm value

Cite this

Abhayawansa, S., Abeysekera, I., & Guthrie, J. (2007). Critically thinking about demand and supply of human capital disclosure of firms. Paper presented at International Critical Management Studies Conference (ICMS), .
Abhayawansa, Subhash ; Abeysekera, Indra ; Guthrie, James. / Critically thinking about demand and supply of human capital disclosure of firms. Paper presented at International Critical Management Studies Conference (ICMS), .
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abstract = "World economies are increasingly being dominated by knowledge intensive industries. Firms that aspire to be successful in such industries focus on fostering intellectual capital (IC), which includes human capital (HC), rather than investing in physical assets. Importance of HC in firm value creation is firmly established in the literature. However, inherent nature of HC has limited any empirical value relevant studies on these assets. Literature on disclosure of IC information by companies in annual reports and IPO prospectuses around the world have looked at the level of emphasis placed on human capital disclosures by preparers of financial statements. These studies show mixed results as some countries disclose more HC information relative to others. On the demand side, capital market participants, namely financial analysts and fund managers seem not yet ready to incorporate such information into their valuation processes. Thus, the current study intends to critically discuss the reasons for the difference in emphasis placed by countries on HC disclosures and impediments for this information to explicitly be considered in valuation decisions by capital market participants. Further, the future role of preparers and users of IC information is evaluated.",
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Abhayawansa, S, Abeysekera, I & Guthrie, J 2007, 'Critically thinking about demand and supply of human capital disclosure of firms' Paper presented at International Critical Management Studies Conference (ICMS), 1/01/11, .

Critically thinking about demand and supply of human capital disclosure of firms. / Abhayawansa, Subhash; Abeysekera, Indra; Guthrie, James.

2007. Paper presented at International Critical Management Studies Conference (ICMS), .

Research output: Contribution to conferenceConference paper presented at Conference (not in Proceedings)Researchpeer-review

TY - CONF

T1 - Critically thinking about demand and supply of human capital disclosure of firms

AU - Abhayawansa, Subhash

AU - Abeysekera, Indra

AU - Guthrie, James

PY - 2007

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N2 - World economies are increasingly being dominated by knowledge intensive industries. Firms that aspire to be successful in such industries focus on fostering intellectual capital (IC), which includes human capital (HC), rather than investing in physical assets. Importance of HC in firm value creation is firmly established in the literature. However, inherent nature of HC has limited any empirical value relevant studies on these assets. Literature on disclosure of IC information by companies in annual reports and IPO prospectuses around the world have looked at the level of emphasis placed on human capital disclosures by preparers of financial statements. These studies show mixed results as some countries disclose more HC information relative to others. On the demand side, capital market participants, namely financial analysts and fund managers seem not yet ready to incorporate such information into their valuation processes. Thus, the current study intends to critically discuss the reasons for the difference in emphasis placed by countries on HC disclosures and impediments for this information to explicitly be considered in valuation decisions by capital market participants. Further, the future role of preparers and users of IC information is evaluated.

AB - World economies are increasingly being dominated by knowledge intensive industries. Firms that aspire to be successful in such industries focus on fostering intellectual capital (IC), which includes human capital (HC), rather than investing in physical assets. Importance of HC in firm value creation is firmly established in the literature. However, inherent nature of HC has limited any empirical value relevant studies on these assets. Literature on disclosure of IC information by companies in annual reports and IPO prospectuses around the world have looked at the level of emphasis placed on human capital disclosures by preparers of financial statements. These studies show mixed results as some countries disclose more HC information relative to others. On the demand side, capital market participants, namely financial analysts and fund managers seem not yet ready to incorporate such information into their valuation processes. Thus, the current study intends to critically discuss the reasons for the difference in emphasis placed by countries on HC disclosures and impediments for this information to explicitly be considered in valuation decisions by capital market participants. Further, the future role of preparers and users of IC information is evaluated.

M3 - Conference paper presented at Conference (not in Proceedings)

ER -

Abhayawansa S, Abeysekera I, Guthrie J. Critically thinking about demand and supply of human capital disclosure of firms. 2007. Paper presented at International Critical Management Studies Conference (ICMS), .