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Accounting for Investments in Human Capital: A Review

51 Pages Posted: 10 Sep 2010  

Anne Wyatt

University of Queensland

Hermann Frick

University of Queensland - Business School

Date Written: July 9, 2010

Abstract

This paper provides an overview of the human capital literature focusing on the firm’s incentives and disincentives to invest in human capital and subsequently to account for the investments. The evidence suggests human capital investment decisions are intrinsically linked to the success of a business and ultimately to the probability of survival. However, disclosure is largely a voluntary choice by managers as there are few formal disclosure requirements. The conclusion from the evidence shows that the benefits to stakeholders of disclosing information relating to human capital investment are likely to outweigh the costs and suggest a wide range of topics for future research.

Keywords: Human Capital Investment Incentives, Accounting for Human Capital Investment

JEL Classification: J3, J4, J24, M12, M41, M5

Suggested Citation

Wyatt, Anne and Frick, Hermann, Accounting for Investments in Human Capital: A Review (July 9, 2010). Available at SSRN: https://ssrn.com/abstract=1674413 or http://dx.doi.org/10.2139/ssrn.1674413

Anne Wyatt (Contact Author)

University of Queensland ( email )

4072 Brisbane, Queensland
Australia
61 0419125779 (Phone)
61 7 33656988 (Fax)

Hermann Frick

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

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