Value Relevance Human Capital Information on the Annual Report of Indonesia Listed Companies

Yie Ke Feliana, Ester Novita

Abstract


Human resources at the companies in Indonesia should be an important focus for investors, due to the general complaints of low labor productivity compared to other countries. This study aimed to investigate the value relevance of human capital disclosure and changes of human capital disclosure to share price and share return on listed companies at Indonesia Stock Exchange from all industrial sectors in 2016. Human capital information measured by word counting of information related to human capital in the firm annual report. The results showed that the disclosure information of human capital was value relevant with share price but only from qualification/ competencies category. For the disclosure changes in human capital, the information did not show any significant effect to return per share. Thus, generally Indonesia investors only focus on information on qualification/competency human resources in companies at that time, other information was ignored.

JEL Classification: G11, G14, J24

DOI: https://doi.org/10.26905/jkdp.v22i4.1945


Keywords


Human Capital; Information Disclosure; Return per Share; Share Price; Value Relevance

Full Text:

PDF

References


Alfraih, M. M. (2017). The value relevance of intellectual capital disclosure: Empirical Evidence from Kuwait. Journal of Financial Regulation and Compliance, 25(1), 22-38. https://doi.org/10.1108/JFRC-06-2016-0053

Ball, B., & Brown, P. (1968). An Empirical Evaluation of Accounting Income Numbers. Journal of Accounting Research, 6(2): 159-178. https://doi.org/10.2307/2490232

Baron, A. (2011). Measuring human capital. Strategic HR Review, 10(2), 30-35. https://doi.org/10.1108/14754391111108338

Brȕggen, A., Vergauwen, P., & Dao, M. (2009). Determinants of intellectual capital: Evidence from Australia. Management Decision, 47(2), 233-245. https://doi.org/10.1108/00251740910938894

Ellis, H., & Seng, D. (2015). The value relevance of voluntary intellectual capital disclosure: New Zealand evidence. Corporate Ownership and Control, 13(1), 1071-1087. https://doi.org/10.22495/cocv13i1c9p9

Ferraro, O., & Veltri, S. (2011). The value relevance of intellectual capital on the firm’s market value: An empirical survey on the Italian listed firms. International Journal of Knowledge-Based Development, 2(1), 66-84. https://doi.org/10.1504/IJKBD.2011.040626

Gamerschlag, R. (2013). Value relevance of human capital information. Journal of Intellectual Capital, 14(2), 325-345. https://doi.org/10.1108/14691931311323913

Gao, F., Li, M., & Clarke, S. (2008). Knowledge, management, and knowledge management in business operations. Journal of Knowledge Management, 12(2), 3-17. https://doi.org/10.1108/13673270810859479

Kehelwalatenna, S., & Premaratne, G. (2013). An examination of the value relevance of intellectual capital: The case of banking industry. Journal of Business and Policy Research, 8(1), 147-160. http://dx.doi.org/10.2139/ssrn.2174211

Lev, B., & Zarowin, P. (1999). The boundaries of financial reporting and how to extend them. Journal of Accounting Research, 37(2), 353-385. http://dx.doi.org/10.2307/2491413

Mariappanadar, S., & Kairouz, A. (2017). Influence of human resource capital information disclosure on investors’ share investment intention: An Australian study. Personnel Review, 46(3), 551-571. https://doi.org/10.1108/PR-07-2014-0166

Ojo, M., & Akkeren, J. V. (2016). Value relevance of accounting information in capital markets. Hershey: IGI Global Publishing.

Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91.

Puspitaningtyas, Z. (2012). Relevansi nilai informasi akuntansi dan manfaatnya bagi investor. Jurnal Ekonomi dan Keuangan, 16(2), 164-183.

Stewart, T. A, & Ruckdeschel, C. (1998). Intellectual capital: The new wealth of organization. Performance Improvement, 37(7), 56-59. https://doi.org/10.1002/pfi.4140370713

Sumarni, A. S., & Rahmawati. (2007). Relevansi nilai informasi arus kas dengan rasio laba harga dan perubahan laba harga sebagai variabel moderasi: Hubungan nonlinier. Jurnal Akuntansi dan Auditing Indonesia, 11(1), 21-33. Retrieved from: http://journal.uii.ac.id/JAAI/article/view/381

Tribunnews. (2018). Tingkat Produksi Sumber Daya Manusia Indonesia saat ini Masih Sangat Rendah dibandingkan Jepang. Retrieved from: http://www.tribunnews.com/internasional/2018/04/20/tingkat-produksi-sumber-daya-manusia-indonesia-masih-sangat-rendah-saat-ini-dibandingkan-jepang?page=1

Vafaei, A., Taylor, D., & Ahmed, K. (2011). The value relevance of intellectual capital disclosures. Journal of Intellectual Capital, 12(3), 407-429. https://doi.org/10.1108/14691931111154715

Vergauwen, P. G. M. C., & Van-Alem, F. J. C. (2005). Annual report IC disclosures in the Netherlands, France, and Germany. Journal of Intelectual Capital, 6(1), 89-104. https://doi.org/10.1108/14691930510574681

World Economic Forum. (2018). The Global Competitiveness Report 2018. Switzerland.




DOI: https://doi.org/10.26905/jkdp.v22i4.1945

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534
Email: jkp@unmer.ac.id

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0