Human Capital Reporting and its Linkage with Key Performance Indicators of Companies: Evidence from Estonian Companies Listed on Nasdax OMX Baltic

Abstract

Today the subject of non-nancial accounting and reporting has become very popular. Human Capital Reporting (HCR) has become a vital part of everyday business activities of companies across the world. Most companies declare that human capital is the most important factor of their competiveness, which is also re ected in their CSR reports by incorporated social disclosures. The subject of the present research is human capital reporting and its linkage with the performance indicators of companies. The aim of this research is to establish whether there is a linkage between HCR and nancial performance indicators of Estonian companies listed on the Nasdaq OMX Baltic (Tallinn market). The authors calculated various ratios and carried out HCR scoring to examine the presence of linkage between HCR reporting and companies' nancial performance. The results demonstrate that there is no direct relationship between the level of HCR and the nancial performance of selected companies.

Conceptual Framework of Employee and Organisation related variables: A Review and Synthesis of Literature

“…According to Casalegno and Pellicelli, (2008) organizations with more Human capital can create a high value of share-holders in contrast to organizations with less Human capital. The relationship between CSR and Human capital has been perceived as positive (Casalegno et al 2017;E, Startseva et al 2015). Human capital can be strengthened by the implementation of CSR activities.…”