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Human Capital Accounting Implications on Firm Market Value: A Survey of Kenyan Private Universities

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  • San Lio

Abstract

Purpose-The study examined the findings of an empirical evaluation of Human Capital (HC) accounting implications on firm market value among Kenyan private universities. Design/methodology/approach- a Cross-sectional survey on finance and human resource directors in Kenyan private universities.Findings- Kenyan Chartered Private Universities were successful because they accounted for, and reported their HC as material investments. However, further research was recommended to establish whether- the 4.2% who did not enjoy a good reputation and image consecutively for the past three financial periods; the 47% who did not enjoy easy access to Kenya’s capital markets consecutively for the past three financial periods; the 25% who did not retain their quality HC consecutively for the past three financial periods; as well as the 30% who did not enjoy high ROI consecutively for the past three financial periods- did so solely because they did not account and report their HC as material investments or there were indeed other factors motivating the results. Originality/Value-Accounting for HC is a big deal in Kenyan Knowledge-Information-Service-Sector (KISS) firms such as private universities because HC is the intervening factor for competitive advantage- Yet the discipline is unexplored in existing Kenyan empirical works.

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  • San Lio, 2021. "Human Capital Accounting Implications on Firm Market Value: A Survey of Kenyan Private Universities," Accounting and Finance Research, Sciedu Press, vol. 10(2), pages 1-51, May.
    • Handle: RePEc:jfr:afr111:v:10:y:2021:i:2:p:51
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    References listed on IDEAS

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    1. Kothari, S. P., 2001. "Capital markets research in accounting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 105-231, September.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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