On the mystery of odd human capital values
Journal of Human Resource Costing & Accounting
ISSN: 1401-338X
Article publication date: 26 June 2009
Abstract
Purpose
The purpose of this paper is to elaborate the feasibility of market based estimations of the value of human capital in firms.
Design/methodology/approach
The concept of intangible assets and market‐based valuation of human capital is presented. Cases of extreme estimates of human capital values are presented. The possibility of extremely low or even negative human capital values is examined.
Findings
It is demonstrated that odd human capital values can be explained by referring to principles of valuating fixed assets and intangible liability.
Practical implications
The paper demonstrates that market‐based methods for estimating the value of human capital of the firm can be feasible despite the existence of very odd human capital values.
Originality/value
The findings of the paper adds to the discussion of how to valuate human capital in intellectual capital accounts in general and human capital accounts in particular.
Keywords
Citation
Ahonen, G. (2009), "On the mystery of odd human capital values", Journal of Human Resource Costing & Accounting, Vol. 13 No. 2, pp. 118-124. https://doi.org/10.1108/14013380910968638
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited