Central European Business Review 2015, 4(4):48-57

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

Emilia Startseva1, Natalja Gurvitš2, Inna Sidorova3
1 Emilia Startseva, Ph.D. student, Department of Accounting, Tallinn School of Economics and Business Administration, Akadeemia tee 3, 12618 Tallinn, Estonia, emilia.startseva@ttu.ee
2 Dr. Natalja Gurvitš, Associate Professor, Department of Accounting, Tallinn School of Economics and Business Administration, Akadeemia tee 3, 12618 Tallinn, Estonia, natalja.gurvits@ttu.ee
3 Inna Sidorova, ACMA/GCMA, London, United Kingdom, sidoroinn@gmail.com

Today the subject of non-financial 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 reflected 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 financial 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' financial performance. The results demonstrate that there is no direct relationship between the level of HCR and the financial performance of selected companies.

Keywords: CSR; Human Capital Reporting; performance indicators; market value added; sustainability
JEL classification: G30

Received: September 17, 2015; Revised: December 1, 2015; Published: December 31, 2015  Show citation

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Startseva, E., Gurvitš, N., & Sidorova, I. (2015). Human Capital Reporting and its Linkage with Key Performance Indicators of Companies: Evidence from Estonian Companies Listed on Nasdax OMX Baltic. Central European Business Review, 4(4), 48-57
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