Measuring Corporate Human Capital Disclosures: Lexicon, Data, Code, and Research Opportunities

Journal of Information Systems, Forthcoming

50 Pages Posted: 17 Jan 2024 Last revised: 5 Mar 2024

See all articles by Elizabeth Demers

Elizabeth Demers

University of Waterloo

Victor Xiaoqi Wang

California State University, Long Beach - Department of Accountancy

Kean Wu

Rochester Institute of Technology (RIT) - Saunders College of Business

Date Written: December 31, 2023

Abstract

Human capital (HC) is increasingly important to corporate value creation. Unlike other assets, however, HC is not currently subject to well-defined measurement or disclosure rules. We use a machine learning algorithm (word2vec) trained on a confirmed set of HC disclosures to develop a comprehensive list of HC-related keywords classified into five subcategories (DEI; health and safety; labor relations and culture; compensation and benefits; and demographics and other) that capture the multidimensional nature of HC management. We share our lexicon, corporate HC disclosures, and the Python code used to develop the lexicon, and we provide detailed examples of using our data and code, including for fine-tuning a BERT model. Researchers can use our HC lexicon (or modify the code to capture another construct of interest) with their samples of corporate communications to address pertinent HC questions. We close with a discussion of future research opportunities related to HC management and disclosure.

Keywords: Human capital, corporate disclosure, lexicon, word2vec, BERT, Python code, textual analysis

JEL Classification: B40, C80, M14, M41, M54

Suggested Citation

Demers, Elizabeth and Wang, Victor Xiaoqi and Wu, Kean, Measuring Corporate Human Capital Disclosures: Lexicon, Data, Code, and Research Opportunities (December 31, 2023). Journal of Information Systems, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4197489 or http://dx.doi.org/10.2139/ssrn.4197489

Elizabeth Demers

University of Waterloo ( email )

Waterloo, Ontario N2L 3G1
Canada

Victor Xiaoqi Wang (Contact Author)

California State University, Long Beach - Department of Accountancy ( email )

1250 Bellflower Blvd.
Long Beach, CA 90840
United States

Kean Wu

Rochester Institute of Technology (RIT) - Saunders College of Business ( email )

Saunders College of Business
105 Lomb Memorial Drive
Rochester, NY 14623-5608
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
281
Abstract Views
1,200
Rank
205,670
PlumX Metrics