What Are The Impact Of Human Capital Accounting On ShareholdersValue Of Oil And Gas Companies?
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HUMAN CAPITAL ACCOUNTING AND SHAREHOLDERS’ VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
This study evaluated the effect of human capital accounting on shareholders’ value in oil and gas companies in Nigeria. This is with a view to providing information on how costs incurred on personnel could be identified, measured and disclosed on the statement of financial position of companies as an asset which is the key factor to the successful operation in oil and gas industry. The study made use of secondary data collected for the period 2004 – 2016. The entire oil and gas companies listed on the Nigerian Stock Exchange (NSE) were selected for the study based on availability of human capital accounting information in their Annual…show more content… In other words, the increase in knowledge can be subjected to the law of diminishing return with time and usage, renewable from time to time, growing stronger with sharing and exchange (Akintoye, 2012). The knowledge-based economy has been described as “the notion that economic wealth is created through the creation, production, distribution and consumption of knowledge and knowledge-based products” (Harris, 2001), otherwise termed the weightless or information economy.
Human capital is one of the valuable strategic assets. It has enormous contribution in the field of inventions and innovation therefore, its importance cannot be overlooked in the knowledge base economy (Olayiwola, 2015). Human Capital is defined as the knowledge, experience, skill and expertise of firms’ employees (Edvinsson & Malone1997). Diez, Ochoa, Prieto & Santidrian (2010) define human capital as firm’s competencies and value creation efficiencies which are linked by employee’s knowledge, skill and intellectual capabilities. Sveiby (1997) describes human capital as ability to work in different dimensions that enhance value creation both in tangible and intangible assets. Bontis, 1998 conclude s that in other to find out paramount solutions of structured and unstructured problems