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Aligning Human Capital Measurement With Corporate Value Creation: Evidence From The Taiwan Electronics Industry

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  • Chin-Chen Yeh
  • Fan-Hua Kung

Abstract

The aim of this study was to identify appropriate indicators of human capital and clarify the relationship between investment in human capital and corporate value. We examined the relationship between proxy variables and corporate value, using empirical models to analyze the explanatory power of human capital indicators with regard to corporate value. We found that both financial and non-financial indicators of human capital are associated with corporate value. However, this effect is more evident in companies in the electronics industry. A number of managerial implications and research suggestions are also proposed.

Suggested Citation

  • Chin-Chen Yeh & Fan-Hua Kung, 2013. "Aligning Human Capital Measurement With Corporate Value Creation: Evidence From The Taiwan Electronics Industry," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(5), pages 35-46.
    • Handle: RePEc:ibf:ijbfre:v:7:y:2013:i:5:p:35-46
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    References listed on IDEAS

    as
    1. Bo Hansson, 2004. "Human Capital and Stock Returns: Is the Value Premium an Approximation for Return on Human Capital?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(3‐4), pages 333-358, April.
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    5. Randall S. Schuler & Susan E. Jackson, 2005. "A Quarter-Century Review of Human Resource Management in the U.S.: The Growth in Importance of the International Perspective," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(1), pages 11-35.
    6. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    7. Bo Hansson, 2004. "Human Capital and Stock Returns: Is the Value Premium an Approximation for Return on Human Capital?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(3-4), pages 333-358.
    8. Randall S. Schuler & Susan E. Jackson, 2005. "A Quarter-Century Review of Human Resource Management in the U.S.: The Growth in Importance of the International Perspective," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 16(1), pages 11-35.
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    More about this item

    Keywords

    Human Capital Effectiveness; Human Capital Measurement; Transferability of Human Capital Indicators; Corporate Value;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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