An Explanation of Human Capital Disclosure from the Resource Based Perspective

Abstract

Though the importance of human capital (HC) in firm value creation is firmly established in the literature the level of emphasis placed on human capital disclosure (HCD) by preparers of financial statements and sell-side analysts is minimal. The purpose of this paper is to address this dilemma by critically analysing the conceptualisation of human capital in disclosure literature and introduce a more germane explanation.

Keywords: emotional assets, emotional liabilities, emotional capital, intellectual assets, intellectual liabilities