Abstract
Purpose-The study examined the findings of an empirical evaluation of Human Capital (HC) accounting implications on firm market value among Kenyan private universities. Design/methodology/approach- a Cross-sectional survey on finance and human resource directors in Kenyan private universities.Findings- Kenyan Chartered Private Universities were successful because they accounted for, and reported their HC as material investments. However, further research was recommended to establish whether: the 4.2% who did not enjoy a good reputation and image consecutively for the past three financial periods; the 47% who did not enjoy easy access to Kenya’s capital markets consecutively for the past three financial periods; the 25% who did not retain their quality HC consecutively for the past three financial periods; as well as the 30% who did not enjoy high ROI consecutively for the past three financial periods: did so solely because they did not account and report their HC as material investments or there were indeed other factors motivating the results. Originality/Value-Accounting for HC is a big deal in Kenyan Knowledge-Information-Service-Sector (KISS) firms such as private universities because HC is the intervening factor for competitive advantage: Yet the discipline is unexplored in existing Kenyan empirical works.
Highlights
1.1 Background of the StudyHuman Capital (HC) drives organizational prosperity yesterday and today
This study was on Human Capital (HC) Accounting implications on firm market value among the 34 Kenyan private universities chartered by Commission for University Education in 2019
Ninety-two percent of those surveyed promoted the treatment of HC as material investments in the Human Resource Accounting (HRA) discipline for their Universities’ improved market value, and 86% recommended its use in Kenyan Chartered Private Universities as they affirmed that: investing in HC puts organizations on a competitive edge
Summary
1.1 Background of the StudyHuman Capital (HC) drives organizational prosperity yesterday and today. Whether the firm is in the merchandising, manufacturing, or services sector, the human brain and hand are the intervening constituents for ceaseless competitiveness. Global people build on the quest to capture global markets and brains; HC is the unyielding answer. He asserts that General Electric (GE) discovered early on 50 or 60 years ago that people and culture are the common denominators in a multi-business enterprise, and spent approximately 40% of his time on the people’s agenda. While acknowledging the power of HC, and especially in leading roles and competitive advantage, Flextronics CEO Marks (2004) argued that developing global leaders will become easier with each passing year if firms shift their thinking from the past generations and lay emphasis on HC. The executive chairman of Egon Zehnder International, Daniel Meiland (2004) observed that successful multinationals, for example, Shell and GE track their people carefully for many years
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
