Open AccessHuman Capital Accounting Implications on Firm Market Value: A Survey of Kenyan Private Universities
Author(s) -
San Lio
Publication year - 2021
Publication title -
accounting and finance research
Language(s) - English
Resource type - Journals
eISSN - 1927-5994
pISSN - 1927-5986
DOI - 10.5430/afr.v10n2p51
Subject(s) - kenya , human capital , reputation , business , value (mathematics) , finance , accounting , human resources , private sector , economics , economic growth , management , social science , machine learning , sociology , political science , computer science , law
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.