Is it Time to Disclose Information About Human Capital Investments?

13 Pages Posted: 9 Nov 2004

See all articles by Bo Hansson

Bo Hansson

Organization for Economic Co-Operation and Development (OECD) - Directorate for Education (EDU)

Date Written: November 5, 2004

Abstract

Firms' investments in training their employees constitute a substantial part of the overall investments for an average firm. Despite difficulties in accessing company-based data on training, recent research has shown that these investments generate considerable gains for firms in terms of increased productivity and profitability. The absence of reliable, standardized information on training appears to hamper the ability of investors to stay informed about these investments. It is therefore argued from the current state of research that it might be time for mandatory disclosure of employee training in order to achieve a better allocation of resources in the capital market. Reliable information on company training might not only benefit investors but also lead to a labour market that functions better.

Keywords: Human capital investments, training, accounting, disclosure, profitability, risk, return, intellectual capital, intangible assets

JEL Classification: M53, M41, M45, G12, J30, G14

Suggested Citation

Hansson, Bo, Is it Time to Disclose Information About Human Capital Investments? (November 5, 2004). Available at SSRN: https://ssrn.com/abstract=615503 or http://dx.doi.org/10.2139/ssrn.615503

Bo Hansson (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Education (EDU) ( email )

2, rue André-Pascal
Paris, 75775
France
+33 01 4524 1512 (Phone)
+33 01 4430 6177 (Fax)

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