Effect of Financial Variables Disclosed in the Annual Report on Human Resource Value in Infosys Limited

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Effect of Financial Variables Disclosed in the Annual Report on Human Resource Value in Infosys Limited

Author Affiliations

¹Department of Master of Business Administration, University of Mysore, Mysore, INDIA

Res. J. Recent Sci., Volume 3, Issue (8), Pages 43-52, August,2 (2014)

Abstract

The evaluation of Human Assets of Infosys is based on the present value of the future earnings of the employees with the following assumptions: Employees’ compensation includes all the direct and indirect benefits earned both in India and abroad. The incremental earnings based on the basis of group and age is considered. The study is carried out by analyzing the behavior of all the important variables from the HRA point of view. To find out the interrelationship between these variables, the bivariate correlation analysis between HRV and financial variables has been undertaken. The data used in the study has been collected from the annual reports of Infosys for the years 2005-06 to 2011-12. The simple correlation analysis as examined in the study reveals the insignificant relationship between financial variables, predictor variables and HRV per employee except in Return on HRV. HRV is negatively related with the Return on HRV.

References

Hermanson R., Brummet R., Elias N., Flamholtz E., Irish R., Kretschmar C. et al., Report of the committee on human resource accounting, The accounting review,(special report),168-185 (1973)
Porwal L.S., Accounting Theory, 3E: Tata McGraw-Hill Education (2001)
Okpala, P. O., and Chidi, O. C., Human Capital Accounting and its Relevance to Stock Investment Decisions in Nigeria, European Journal of Economics, Finance and Administrative Sciences,(21), 64-76 (2010)
Patra R., Khatik S.K. and Kolhe M., Human resource accounting policies and practices: A case study of Bharat Heavy Electricals Limited, Bhopal, India (2003)
Lev B. and Schwartz A., On the use of the economic concept of human capital in financial statements, The Accounting Review, 46(1), 103-112 (1971)
Verma S. and Dewe P., Valuing human resources: perceptions and practices in UK organizations, Journal of Human Resource Costing and Accounting, 12(2), 102-123 (2008)
Al Mamun S.A., Human resource accounting (HRA) disclosure of Bangladeshi companies and its association with corporate characteristics (2009)
Sharma S. and Shukla R.K., Application of Human Resource Accounting in Heavy Industries, S-JPSET, 1(2),131-133 (2010)
Yusoff Rosman Md, et al., The Importance of Right Person in the Right Place at the Right Time in Private Healthcare Sector in Pakistan: A Case Study of Rehman Medical Institute (RMI), Research Journal of Recent Sciences, 2(1), 84-90, January (2013)

[ref1] Hermanson R., Brummet R., Elias N., Flamholtz E., Irish R., Kretschmar C. et al., Report of the committee on human resource accounting, The accounting review,(special report),168-185 (1973)

[ref2] Porwal L.S., Accounting Theory, 3E: Tata McGraw-Hill Education (2001)

[ref3] Okpala, P. O., and Chidi, O. C., Human Capital Accounting and its Relevance to Stock Investment Decisions in Nigeria, European Journal of Economics, Finance and Administrative Sciences,(21), 64-76 (2010)

[ref4] Patra R., Khatik S.K. and Kolhe M., Human resource accounting policies and practices: A case study of Bharat Heavy Electricals Limited, Bhopal, India (2003)

[ref5] Lev B. and Schwartz A., On the use of the economic concept of human capital in financial statements, The Accounting Review, 46(1), 103-112 (1971)

[ref6] Verma S. and Dewe P., Valuing human resources: perceptions and practices in UK organizations, Journal of Human Resource Costing and Accounting, 12(2), 102-123 (2008)

[ref7] Al Mamun S.A., Human resource accounting (HRA) disclosure of Bangladeshi companies and its association with corporate characteristics (2009)

[ref8] Sharma S. and Shukla R.K., Application of Human Resource Accounting in Heavy Industries, S-JPSET, 1(2),131-133 (2010)

[ref9] Yusoff Rosman Md, et al., The Importance of Right Person in the Right Place at the Right Time in Private Healthcare Sector in Pakistan: A Case Study of Rehman Medical Institute (RMI), Research Journal of Recent Sciences, 2(1), 84-90, January (2013)