Human resource accounting

About: Human resource accounting is a research topic. Over the lifetime, 358 publications have been published within this topic receiving 5650 citations.

Making Sense of Intellectual Capital: Designing a Method for the Valuation of Intangibles

Abstract: Table of contents Preface and Acknowledgements xix 1. Objective: Valuation and Measurement in the Intangible Economy 1.1 Introduction The Intangible perspective The transformation of the economy Seven characteristics of the Intangible Economy Drivers of the Intangible Economy The Intellectual Capital community Valuation and measurement of intangibles Value Valuation Four ways to determine value Objective and problem My objectives Problem to tackle Methodology Practicing management research as a design science Using the developing multiple case study Structure of the book 2. Methodology: The Science of Designing Practical Methods Introduction Making sense of the social world Distinctions make sense The world doesn't speak We know according to the way we are and the way we feel The social world does not sit still Social science Anything goes? How to test an empirical proposition How to test a practical proposition Bringing the two together Science follows its own rules Management research The subject of management research The scientific nature of management research My study The reflective cycle used in this study Difficulties in applying the reflective cycle The use of reconstructed logic 3. Legacy: Methods for the Valuation and Measurement of Intangibles Introduction What: Distinctions & definitions Intellectual Capital Intangible Assets Human Resources and Human Assets Reflection Why: Problems & consequences Improving internal management Improving external reporting Statutory and transactional issues Reflection How: Solutions & results Financial valuation methods Value measurement methods Value assessment methods Measurement methods Reflection Implications for the requirements of a new method 4. Design: Draft of a New Method Introduction Request for proposals Request Evaluation Iteration 1 Design Evaluation Iteration 2 Design Evaluation Iteration 3 Design Evaluation Iteration 4 Problem definition Requirements Design 5. Test: Trying Out the New Method Introduction Bank Ltd Context & problem definition Specific requirements & design Implementation & results Additions to the design Reporting to the client Evaluation & modifications Electro Ltd. Context & problem definition Specific requirements & design Implementation & results Reporting to the client Evaluation & modifications Automotive Ltd. Context and problem definition Specific requirements & design Implementation & results Evaluation & modifications Logistic Services BU Context & problem definition Specific requirements & design Implementation & results Reporting to the client Evaluation & modifications Professional Services LLP Context & problem definition Specific requirements & design Implementation & results Reporting to the client Evaluation & modifications Consulting Dept. Context & problem definition Special requirements & design Implementation & results Reporting to the client Evaluation & modifications Result of the tests The method and its requirements The success of the method 6. Lessons Learned: Contributions to Intellectual Capital Research Introduction Lessons about the method The application domain of the method The strengths and mechanisms of the method The weaknesses of the method Final modifications to the method Lessons about valuing intangible resources Valuing intangibles requires values Valuing intangibles requires a beholder Valuing intangible resources does not require money Valuing intangibles requires identification and demarcation Valuing intangibles requires diagnosis Valuing intangibles requires methods Lessons about practicing IC research as a design science Reconciling the rigor-relevance dilemma in IC research Determining the effect of the implementation Determining the contribution of the method The analyst versus the researcher Implications for future IC research Valuing and improving problem definitions Explaining and improving success-rate Explaining and improving the impact of numbers Epilogue Appendix A. Overview of 25 Valuation and Measurement Methods A.1 Balanced Scorecard (Kaplan & Norton) A.2 Calculated Intangible Value A.3 Citation-Weighted Patents A.4 Economic Value Added (Stewart) A.5 Holistic Value Approach HVA (Roos) A.6 Human Resource Accounting A.7 IC Audit (Brooking) A.8 IC-Index (Roos) A.9 Inclusive Value Methodology(TM) (M'Pherson) A.10 Intangible Asset Monitor (Sveiby) A.11 Intangibles Scoreboard (Lev) A.12 Intellectual Capital Benchmarking System (Viedma) A.13 Intellectual Capital dynamic Value (Bounfour) A.14 Intellectual Capital Statement (Mouritsen et al.) A.15 iValuing factor (Standfield) A.16 Konrad Group A.17 Market-to-book ratio A.18 Options Approach A.19 Skandia Navigator (Edvinsson) A.20 Sullivan's Work A.21 Technology Factor (Khoury) A.22 Tobin's q (Tobin) A.23 Valuation approaches A.24 Value Added Intellectual Coefficient VAIC(TM)(Pulic) A.25 Value Chain Scoreboard (Lev) Appendix B. Weightless Wealth Toolkit B.1 How to Use the Toolkit B.2 Phase One: Do Intake B.3 Phase Two: Identify Intangible Resources B.4 Phase Three: Carry out Value Assessment B.5 Phase Four: Perform Financial Valuation B.6 Phase Five: Develop Management Agenda B.7 Phase Six: Report Value Dashboard Glossary of Terms Bibliography About the Author Index

The application of the value added intellectual coefficient to measure corporate performance: evidence from technological firms

Abstract: This research applies a new accounting tool for measuring the 'value creation' efficiency of a company, the Value Added Intellectual Coefficient (VAIC TM) of Pulic (1998). It also examines its correlation with corporate performance, based on the 2003 annual report from 80 Taiwan listed technologies firms. After modifying the model, applications show that the index of VAIC had a significantly positive correlation with profitability (ROA) and market valuation (MB), and a negative correlation with productivity (ATO), three aspects of a firm's performance. The findings suggest that technological industry in Taiwan is capable of transforming intangible assets such as intellectual capital to high value added products or services, as claimed by Pulic (2004). Tests of VAIC and measures of corporate performance suggest that there are certain represented the time lag relationships between the two. 1. Introduction In a knowledge economy, there is a difference between the modern approach of value creation and the traditional way of monitoring operations. This difference in business activities is due mainly to; the introduction of knowledge, an entirely different position of labor and changes in structural expenditures. In this respect, labour and capital are the primary factors in determining corporate wellbeing. (Bornemann 1999; Pulic 2000; Firer & Williams 2003; Mavridis 2004). Practically, three types of capital are found in a company: financial, physical and intelligent capital (Goh & Lim 2004), whose composition determines the production of low and high value added products or services. Since the traditional underlying factors of production have changed, there is a need to develop alternative economic theories about the information necessary for intelligent capital performance and perceptions of corporate performance. Conventional accounting systems have been developed for manufacturing economies and for measuring the value of financial and physical assets, but with intangibles they have found it difficult to account for the rate of change. Except for accounting systems, there are several internal and external measures of intelligent capital. The Skandia Navigator was one of the first internal measures to calculate and visualize the value of intangible capital, which intelligent capital (IC) represents as the difference between market and book value (Leif 1997). Others are the human resource accounting method, the intangible assets monitoring method, and the balanced scorecard method. External measures include market-to-book value, Tobin's Q and Real Option theory (Shaikh 2004). Mainly because of the lack of a commonly accepted measuring system, an important empirical question remains: Do traditional measures of corporate performance effectively capture the new emerging intelligent-based measures of the same constructs? This empirical study applies a new accounting tool of VAICTM, or the Value Added Intellectual Coefficient, developed by Ante Pulic (1998) as his trade mark- and his colleagues at the Austrian IC Research Centre (Pulic 2000; Borhemann 1999) which is designed to help managers leverage their company's potential. The key contribution of VAIC is to provide a standardized and consistent measure that can be used to conduct comparative analyses across various sectors locally and internationally. This potential of VAIC is motivated by growing evidence in the literature, much of the research stemming from the work of Pulic ( 1998). Bornemann ( 1999) found a correlation between intelligent potential and economic performance. Williams (2001) discovered that a firm with a high level of VAIC it appears to reduce its 'intelligent disclosures' when performance reaches a threshold level for fear of competitive advantage being lost. Moreover, Firer and Williams (2004) found that the associations between the efficiency of value added (VA) and profitability, productivity and market valuation are generally limited and mixed. …

Corporate Social Reporting in the European Context and Human Resource Disclosures: An Analysis of Finnish Companies

Abstract: This paper explores by means of content analysis the extent to which the Finnish biggest companies have adapted socially responsible reporting practices. The research focuses on Human Resource (HR) reporting and covers corporate annual reports. The criteria has been set on the basis of the analysis of the documents published at the European level in the context of corporate social responsibility (CSR), paying special attention to the European Council appeal on CSR in March 2000. As CSR is a relatively new concept in Finland, the paper also contributes to the discussion on interface between HR reporting (especially as based on measurements such as Human Resource Accounting and Intellectual Capital schools) and corporate social reporting practices. The results of the content analysis indicate that social reporting practices are still at an early stage of development in Finland. The most reported theme was ‘training and staff development’. A positive sign was that the majority also disclosed themes ‘participation and staff involvement’ and ‘employee health and well-being’. Furthermore, nearly one-third made references to their work atmosphere or job satisfaction survey. However, disclosures lacked overall consistency and comparability with each other and especially quantitative indicators were disclosed by few. Further concern was lack of information related to the theme equal opportunities and going beyond a sheer disclosure of age or gender structure. The other issues rarely disclosed were those related to employee work–life balance and integration of disadvantaged groups in the labour markets.