Human Capital move stock prices

I went to a very interesting event in London a few weeks ago. It was arranged by Human Potential Accounting and the event was titled “The Future of Investment: Human Capital”. A panel composed of people from different parts of the investment community – private equity, regulators, pension funds, investment banks etc. – discussed howContinue reading “Human Capital move stock prices”

Should Human Capital be fully capitalized on the Balance Sheet?

Book value accounts for about 20% of a company’s market value today. The rest – 80% – is down to immaterial ‘assets’. This makes valuing companies very difficult indeed. There are many good reasons why book value always will be lower than market value. However one way to close this gap – and thereby makingContinue reading “Should Human Capital be fully capitalized on the Balance Sheet?”