Emerging human capital analytics for investment processes

Abstract

Purpose

The purpose of this paper is to respond to the increasing pressure on financial markets to more systematically value the intangible assets in listed firms.

Design/methodology/approach

Using qualitative research techniques on the trading floor of Merrill Lynch Investment Bank in Sydney and Hong Kong, four tools for human capital analysis have been developed by the authors.

Findings

These tools provide mechanisms for securities analysts to more systematically analyse the intangible aspects of publicly listed firms on global stock exchanges.

Research limitations/implications

Given the complex regulatory requirements on securities analysts in many developed economies, these tools are predicated on analysts using publicly available information.

Originality/value

Specifically, the tools use a systems approach and can assist securities analysts to be more systematic in their analysis of management quality of publicly listed companies, as it is manifested in a firm's management systems.

Citation

Royal, C. and O'Donnell, L. (2008), "Emerging human capital analytics for investment processes", Journal of Intellectual Capital, Vol. 9 No. 3, pp. 367-379. https://doi.org/10.1108/14691930810891983