Impact of Human Resource Accounting on Investment Decision in Nigeria

Abstract

The contemporary issues surrounding human resources accounting has been well received in many disciplines, most especially in the field of management sciences. Human resources accounting is essentially the systematic accumulation of information about changes in investments made in human resources and reporting same back to management and all relevant stakeholder, in order to assist in making informed judgments that decision makers would otherwise not have made without such additional information. Given the importance of human resources management in contemporary times, this study seeks to assess the impact of human resource accounting on investment decision in Nigeria. By means of the ordinary least square (OLS) log-linear multiple regression model the study tested its formulated hypothesis that human resource accounting is highly significant to investors and requisite stakeholders in making informed investment decisions. More so, the inclusion of human resource accounting in financial reporting is desirable to aid the public in making rational decisions. The study therefore recommends that organization should enhance the retention of education and training of staff so as to avert wastage of knowledgeable investment and the company law should equally require companies to attach information about the value of human resource and the result of their performance during their accounting year