Article
Human capital investment effects on firm returns
Journal of Applied Business Research
Document Type
Article
Disciplines
Publication Version
Published Version
Publication Date
1-1-1995
Abstract
A study of 260 firms demonstrates that 2 measures of firm investment in specific human capital are significantly and positively correlated with long-term rates of return on investment. The firm investment in specific human capital measures are generally found to be significant explanatory variables in the regressions that have returns scaled by book value of assets. These measures of investment are insignificant when market value of common stock outstanding is used to scale the return measures. The findings are interpreted to imply that a public or regulatory policy needs to be established to require firms to include at least some basic rudimentary information regarding their human capital investment, such as turnover rates and training costs, in their annual reports.
Copyright Owner
Journal of Applied Business Research
Copyright Date
1995/1996
Language
en
File Format
application/pdf
Citation Information
Marvin L. Bouillon, B. Michael Doran and Peter F. Orazem. "Human capital investment effects on firm returns" Journal of Applied Business Research Vol. 12 Iss. 1 (1995) p. 30 - 41 Available at: http://works.bepress.com/peter-orazem/71/
This article is from Journal of Applied Business Research 12 (1995): 30. Posted with permission.