Value Relevance of Human Capital Based Disclosures: Moderating Effects of Labor Productivity, Investor Sentiment, Analyst Coverage and Audit Quality

Authors

Ananda Samudhram, Monash University
Errol Stewart, Georgia Southern UniversityFollow
Jayasinghe Wickramanayake, Monash University
Jothee Sinnakkannu, Monash University

Document Type

Article

Publication Date

12-2014

Publication Title

Advances in Accounting

DOI

10.1016/j.adiac.2014.09.012

ISSN

0882-6110

Abstract

Voluntarily disclosed employee costs in annual reports of listed firms are value relevant, according to US based studies. However, investors appear to fail to take full advantage of the signaling opportunities presented by these disclosures. This study suggests that labor productivity, audit quality, analyst coverage and high technology categorization moderate the value relevance of voluntarily disclosed employee costs in Malaysia, contributing a novel set of moderating variables to the human capital accounting and value relevance literature, and extending the extant literature to an emerging economy. The results are consistent with the findings from US based settings, after incorporating these moderating factors. Pertinent policy recommendations, based on these findings, are suggested.

Comments

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Recommended Citation

Samudhram, Ananda, Errol Stewart, Jayasinghe Wickramanayake, Jothee Sinnakkannu. 2014. "Value Relevance of Human Capital Based Disclosures: Moderating Effects of Labor Productivity, Investor Sentiment, Analyst Coverage and Audit Quality." Advances in Accounting, 30 (2): 338-353. doi: 10.1016/j.adiac.2014.09.012
https://digitalcommons.georgiasouthern.edu/account-facpubs/42