How do institutional investors utilise human capital information?

Dr. Krishanthi Vithana has secured £10,000 to carry out an investigation to understand how institutional investors consider and utilise human capital data in their investment decision.

Although accounting for human capital in firm context has been researched over several decades, there is still a discrepancy between the human resource discourse and accounting discourse on human capital accounting. This leads to an information gap between the information produced by firms on their human capital investment and information requirement and decision usefulness from investors’ perspective. In this context, this project seeks to understand how institutional investors consider and utilise human capital data in their investment decisions. It also seeks to investigate to what extent human capital data informs institutional investor decisions. The project is multidisciplinary in focus drawing on and integrating the literature relating to HRM, organisational behaviour, and accounting. Krish will be supported by Professor Collins Ntim and Professor Malcolm Higgs.