Is it Time to Disclose Information About Human Capital Investments?
13 Pages Posted: 9 Nov 2004
Date Written: November 5, 2004
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: Suggested Citation